Could North Korea soon become a new market for Aussie exporters?

Could North Korea soon become a new market for Aussie exporters? article image

As South and North Korea head toward peace, companies are now looking at North Korea for business opportunities. 

Construction companies, which are expecting mega-scale infrastructure investment projects in the country, are especially interested in learning more, since infrastructure investments will inevitably follow. 

Lee Kwang-soo, an analyst at Mirae Asset Securities, said: "Development of infrastructure and cities is a must in economic development policies. Investment in construction is thus likely to expand." 

Those with business experience in North Korea are also actively preparing for another upcoming opportunity. They are setting up taskforces and re-examining their files related to North Korea projects.

Huge business opportunities

Hyundai Engineering and Construction (E&C), which has much experience in North Korea, also said it is carefully watching how the summit will unfold.

Korea Research Institute for Human Settlements had estimated it would take 93.5 trillion won (A$0.12 trillion) for joint development of the country, which reflects huge business opportunities there. Investment for urban development will also follow. 

Except for its capital city Pyongyang, most North Korean cities are small, reported The Korea Times

"For economic development, North Korea will actively develop cities. The economic growth through urban development and special economic zones has already been proven in China's socialist economy model, and North Korea is likely to follow," Lee said.

Vanessa Maebara is an editor for EMIS, a global leader in market intelligence.

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