As a fallout in emerging markets — once hailed as a safe-haven from the global financial crisis — gathers pace, asset managers are scrambling for newer markets.
What about North Korea? The Stalinist country boasts large untapped natural resources with deposits of gold, coal, zinc and other minerals. It has virtually no capital markets and its banks are all state-owned — making it a true safe haven from the global financial crisis.
The communist state has a good logistics route. It has borders with China, Russia and of course South Korea and a short sea route to Japan. South Korean firms such as Hyundai and LG already invest in the North.
KoryoAsia Limited has just launched subscription to the ChosunFund, a fund designed specifically for investment in North Korea. It is seeking to raise an initial $50 million.
“The DPRK (Democratic People’s Republic of Korea) has effectively been cut off from the international business community for decades. The country holds huge natural resources but is capital starved and lacks the technology and management skills with which to develop them.” Colin McAskill, Executive Chairman of KoryoAsia, says.
