North Koreans eager to learn int’l business norms

North Korean participants listen during a business workshop organized by non-profit group Choson Exchange in this photo taken March 13 in Pyongyang.

If North Korea, as in the eyes of some casual observers, is totally sealed off from the outside world, it would follow that there would be little interest there in, say, the intricacies of the global economy.

But according to Choson Exchange (CE), a Singapore-based non-profit group that runs business workshops in Pyongyang, interest in such international practices is surprisingly high among participants — allowing the group to explore new avenues of engagement when it comes to the North Korean economy.

That interest was demonstrated during a two-day workshop in mid-March that focused on asset-liability and risk management, said CE executive director Andray Abrahamian. It also coincided with the North’s drive to attract more foreign investment into its economy.

“The number one feedback was that it was too short, that two days was not enough,” said Abrahamian, 34, during a recent interview in Seoul.

“We often think of (North Koreans) as being completely hidden away. But in some areas they seemed very well-versed — for example they had clearly read a lot about the subprime mortgage crisis” in the United States that led to the global financial crisis.

Questions abound when it comes to the future of the North’s economy — which struggles to provide food for its population — especially after new leader Kim Jong-un took power following the death of his father Kim Jong-il. While China, its main ally, has urged Pyongyang to follow its path of reform, many question whether it will do so. One of the steps it has taken to invigorate the economy — though it remains to be seen how effectively these will be implemented — has been to amend a series of investment laws and laws regarding special economic zones.

It is at this juncture that CE, an international team of volunteers interested in the political economics of Northeast Asia, offers its services.

Conceived in 2007 by founder Geoffrey See and run by mostly-young professionals from around the world, CE is among the handful of international groups that engage the North on economic matters, with the goal to “see it integrate peacefully into the international community.”

“What we can do is help offer them tools so that if they decide to reform certain aspects of their society, they’ll have the know-how,” said Abrahamian.

Discussion was flowing during the latest workshop, he said, including on topics such as how private equity can be used to grow businesses and the international “Basel rules” that seek to prevent another global banking crisis.

This does not mean the North Korean participants — comprised of talented young business people involved with prominent organizations — do not have more to inquire about.

“There are some real gaps that you’d expect any sort of college educated Westerner to understand,” Abrahamian said, adding that the group works with authorities to choose workshop topics to fill such gaps.

Having on-the-ground experience in the North, the group also helps to provide the outside world with information on the North Korean economy with its members often blogging about their experiences.

Abrahamian, who has visited the North multiple times, said one important point is the ongoing development of a special economic zone (SEZ) in the northeastern port city of Rason, which he said is poised to become a hub for China to ship raw materials through.

The SEZ “now has more autonomy than it used to. People who work there say decisions are made more quickly.Communication is better and the Chinese are fully behind it. Rason is really the place to watch.”

He also noted that in the direct aftermath of the death of Kim Jong-il, Pyongyang began to signal that engagement with outside groups such as CE would continue uninterrupted.

Still, Abrahamian said hurdles remain to be overcome in doing business in the North, including establishing transparency for investors and arbitration of disputes.

CE has its own challenges with the director saying it is working hard to raise funds to provide longer workshops and as well as expenses for outside experts to travel to the North to lead the activities.

And while Abrahamian acknowledged that economic engagement doesn’t necessarily solve all challenges associated with the North, he expressed the hope that CE’s “actively constructive” work would at least bring greater understanding between Pyongyang and the world.

“Obviously, North Korea is very unique. But in a lot of ways it shares similar problems with developing countries all over the world. I think if we can see it in that way a little more, it is to their benefit and probably to ours too,” he said. <Korea Times/Kim Young-jin>

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