Despite a recent dispute over "investment traps" with Pyongyang, another Chinese investment group inked an investment deal with the North Korean government Saturday in Beijing to help North Korea boost its economy.
According to the Beijing News Monday, China Overseas Investment and Investment & Development Group of DPRK signed an agreement to launch a fund worth 3 billion yuan ($476 million) for investment in North Korea. With an initial capital injection of 1 billion yuan, the fund will focus on areas such as mining, real estate development and port operation.
North Korean officials expressed their wish to see more Chinese investors investing in DPRK's infrastructure and indicated that investors would enjoy tax and tariff cuts. Projects promoted by the North Korean officials include some 5-star hotels in Pyongyang and Haeju, and a 376-kilometer high-speed railroad.
Despite the enthusiasm from officials of both sides, investing in North Korea may not be as enticing in the eyes of many private investors as North Korean officials would like it be.
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