Business in the DPRK operates within a unique framework shaped by the country’s political and economic system. While the government maintains a central role in guiding the economy, there are areas where private enterprise and foreign investment have been allowed to grow, albeit under strict regulations.
North Korean corporations, typically state-owned, play a key role in the economy. These enterprises are often involved in industries such as manufacturing, mining, and agriculture, with much of the production directed towards meeting domestic needs and supporting government priorities. While the private sector is limited, there are small-scale businesses that operate within the constraints of the system, particularly in sectors like retail and services.
Foreign companies looking to operate in the DPRK must navigate a controlled environment. Joint ventures with local state-run entities are the most common form of foreign business activity, particularly in sectors such as tourism, construction, and mining. These ventures are often subject to strict oversight, and foreign investors must align with the country’s economic policies and goals.
Rason, the first ever Special Economic Zone in the country also plays an important role with regards to investment, although it is no longer the only SEZ within the country. This guide will explore how business functions within the DPRK, offering insights into both local and foreign companies, the regulatory environment, and the challenges and opportunities that arise in this distinctive economic landscape.