According to the Joong Ang Daily:

When North Korean national football players take the field against the Ivory Coast in their final Group G match in the 2010 International Football Association’s World Cup in South Africa, they will be playing at a stadium their compatriots helped build.

South Korean sources said yesterday North Korean laborers are helping to put the finishing touch on stadiums across South Africa ahead of the World Cup, which will kick off in June.

“North Koreans have been put to work on four to five stadiums that require renovation, including Soccer City stadium in Johannesburg [satellite image here], where the opening and closing ceremonies, plus the final will be staged,” a source said. “There are an estimated 1,000 North Koreans there.”

One such stadium is Mbombela Stadium in Nelspruit (Location here but image takem before construction). The North will face the Ivory Coast on June 25 in this 43,500-seat stadium.The South African government has slated 12 billion rand, or $1.6 billion, for 10 stadiums in nine different cities, and North Korean laborers are expected to reap tens of thousands of dollars for their job.

“During the Kim Il Sung era, North Korea built football stadiums and even presidential halls in African nations,” recalled Lim Il, a North Korean defector who used to work for a construction company in the North. “Perhaps such experience helped secure the South African job.”

North Korea and South Africa established formal diplomatic ties in August 1998. This is their first major personnel exchange since then. It is not yet clear if the workers in South Africa will return home upon completing the World Cup work or will be dispatched to other construction projects.

Helping South Africa can be interpreted as an attempt to earn some much-needed foreign capital. North Korea has up to 30,000 laborers in China, Russia and some Middle Eastern countries. Last September, North Korea sent nearly 50 workers from the state-run Mansudae Art Studio in Pyongyang to construct the 160-foot, $27-million statue depicting a family rising from a volcano in Senegal.

One South Korean government official said, “The North government will likely demand loyalty from those workers and collect their wages to add to their foreign currency reserve.”

If anyone can help me identify the stadiums on which the North Koreans are working I would appreciate it.

Read the full story here:
North hard at work on Cup stadiums
Joong Ang Daily
Lee Young-jong
3/15/2010

North Korea has unilaterally raised rental fees for offices of foreign embassies and international agencies by 20 percent this year, at the same time that it tightens its grip on communications at the establishments, sources said.

A source privy to North Korean affairs said last week that the North Korean Foreign Ministry sent notices to the foreign offices last October and the increase took effect at the beginning of this year. The source also said commodity prices in markets specifically set up for foreigners have soared.

“Following the currency reform last November, the North may have wanted to earn some foreign currency by raising the rents and commodity prices,” the source said. “As far as I know, diplomats and their families are angry that the North has violated diplomatic protocols.”

Pyongyang has diplomatic offices for 25 nations, plus the office for World Food Program among other the United Nations agencies. Most rent out space in buildings owned by North Korea.

Pyongyang-based diplomats have also been asked to celebrate North Korean holidays by purchasing flowers or writing congratulatory messages.

“On Kim Jong-il’s 68th birthday last month, the North asked the diplomats to buy wreaths, made up of ‘the Kim Jong-il flowers,’ and write messages praying for Kim’s health under the ambassador’s name,” one source explained. The source did not know if the diplomats complied.

North Korea is also cracking down on the flow of information within foreign missions and agencies. The North rejected a request by a UN agency to use the Internet to send documents to UN headquarters. When diplomats make international phone calls, North Korean interpreters are there to listen in on the conversation, sources said.

“The North may want to block any details on Kim Jong-il’s health, disruption after the currency reform or other domestic affairs from reaching the outside world,” a South Korean government official said.

One Western diplomat, asking for anonymity, recently complained to a South Korean government official that diplomats in Pyongyang can’t talk to each other freely for fear of others listening in, and that they only vent their frustration when they’re out of North Korea.

In addition to making money from the foreign embassies in Pyongyang, the DPRK earns revenue from its embassies abroad.  See here, here, here, here, here, and here.

Most Pyongyang embassies (aside from Russia and China) are located in Munsudong (satellite image here). Recent photos of Pyongyang’s diplomatic quater here.

This is a fascinating topic.  What are the rental rates now?  How are they determined?  If anyone has an idea, please let me know.

Read the stories below:
Diplomats in North face price hike
Joong Ang Daily
Lee Young-jong
3/15/2010

North Korea has recently revised a law governing its Rason free trade zone in a bid to speed up its development and attract more foreign investment, including from South Korea, officials in Seoul said Sunday.

According to the South Korean officials, a clause allowing “Korean compatriots living outside the Democratic People’s Republic of Korea (North Korea)” to engage in economic and trade activities in Rason has been newly included in the legal code.

The Korea Times has some more information:

The North had banned South Korean investors from Rason in a 1999 revision.

Under the latest revision, the reclusive state will lower tax rates and simplify administrative procedures for foreign investors who want to establish branch and agent offices there, the official said.

The revision took effect Jan. 22 when Pyongyang upgraded the status of Rason to a special city, he said.

The official anticipated that South Korean firms would do business in the zone, saying the latest revision is a positive sign of North Korea opening its doors to outside world.

The North designated Rason and nearby Sonbong, located on the country’s northernmost coast close to both China and Russia, as an economic free trade zone in 1991. The zone was renamed Rason later.

But efforts to attract foreign investment and capital have failed. North Korea aimed to attract $7 billion worth of foreign investment into Rason, but actual investment amounted to only $140 million.

There are an estimated 400 foreign businesses operating in North Korea, but most of them are small businesses run by Chinese or North Korean residents of Japan.

The Choson Ilbo adds more:

Article 8 of the revised law makes it possible for “Koreans” living outside North Korea to do business in the special zone, apparently with a view to attracting South Korean investors.

It also removes a clause requiring foreign companies to obtain government approval when they open sales offices or branches in the zone, making it easier to enter the North Korean market.

Instead, approval is with a new agency overseeing the Rajin-Sonbong zone.

But foreign firms and their staff are explicitly under North Korean jurisdiction, including all the draconian laws that apply to North Koreans.

The previous law permitted foreign investors unconditional no-visa entry and stay in North Korea, but under the new rules they are restricted to the zone.

Corporate income tax is reduced from 14 percent to 10 percent “in sectors particularly promoted by the state.” But other terms related to customs, land lease and bank loans remain unchanged.

One former investor is shouting caveat emptor.  According to the Choson Ilbo:

“I blew $500,000 on Rajin-Sonbong 15 years ago,” recalls Roh Jeong-ho, who headed the first South Korean business to set up operations in North Korea’s Rajin-Sonbong Economic Special Zone in 1995.

Roh (46) is scathing about North Korea’s latest attempts to woo investment to the impoverished Stalinist nation. “It’ll be a repeat of the 1990s, which ended in a belly-flop,” he said. “Nothing has changed in North Korea.”

Roh was once touted by the South Korean media as one of the young leaders in his early 30s who were expected to lead the post-unification era when he exported 44 km of barbed-wire fences to Rajin-Sonbong in 1995. North Korea had asked Roh to supply the fences to isolate the area from ordinary North Koreans. In return, the North offered him the use of 33,000 sq. m of land in the free zone for 50 years.

But there was a catch. The problem was a clause in the contract stipulating that the groundwork on facilities to be built within the leased land must be completed within two years. North Korea continued to make unreasonable demands regarding construction when the area was devoid of crucial infrastructure like roads, running water and electricity, and construction had to be delayed.

At first, the North threatened to scrap the barbed-wire order, complaining that the deal was revealed to South Korean media. Roh managed to calm the North Koreans, but then they started making new demands. They even told Roh to supply equipment to guards who were posted along the fence, including tazers and high-voltage current generators.

“North Korean government workers operate under a bizarre, performance-based system,” Roh said. “Their performance is gauged based on how much they are able to extort from South Korean businesses.”

Roh said his North Korean business partners often changed as they were either promoted or demoted based on their performance, requiring negotiations to start from scratch every time. After two years passed without Roh being able to complete groundwork on his allotted land, the right was revoked. He ended up wasting close to US$1 million, including expenses on top of the $500,000 cost of producing the barbed wire.

“If you’re not careful, you could end up losing everything,” he warned. He added that the business prospects are riddled with traps. “We tend to believe that the North Koreans would be accommodating since we are ‘compatriots,’ but that’s a big mistake,” Roh said. “North Korea extends its invitation to South Korean businesses in order to use them as window dressing to attract Chinese and Russian investors.”

Additional information:

1. At least one South Korean company is making the move to Rason.

2. China now has a 10-year lease in Rason.

As the spring lean season approaches, the black market exchange rate for North Korean Won continues to grow, while the prices of rice and other necessities are increasing proportionately. Immediately following last year’s currency reform (November 30), rice was sold at 20 Won per Kg, while it cost 400~600 Won at the end of January and has grown to as much as 1000 Won per Kg in early March. In other words, the cost of rice has jumped 50-fold since the currency reform, negating most effects of the ‘100 to 1’ devaluation reform in just a few months.

The online magazine Daily NK reported, “In the North Pyongan Province area of Sinuiju, a kilogram of rice, which cost 400 Won at the end of last month, cost 800 Won on the 2nd, and 1000 Won on the 3rd. It is being said that the in the end, the price of rice will rise to pre-reform prices (of 2,500 Won per Kg).” The shortwave radio broadcaster Open Radio for North Korea reported similarly, stating, “North Korea’s rice prices, which were around 400 Won per kilogram at the end of February, shot up to 1000 Won on the 3rd of this month.”

More than anything, the reason North Korea’s rice price is doubling weekly is the plummeting value of its currency in relation to the PRC Yuan and U.S. dollar. In January, the (North) Korean Trade Bank set the official exchange rate for Yuan at 14.19 Won and for USD at 30 Won. However, according to Daily NK, the black market exchange rate for U.S. currency jumped from 1200 Won per USD at the end of February to 2100~2500 Won by March 3. Open Radio for North Korea reported that in Hyeryong, North Hamgyong Province, one Yuan traded from 80 Won on the black market February 25, jumped to 120~150 Won by the 28th, and traded for 270 Won at the beginning of March, tripling in just three days. It appears that the skyrocketing prices of food and goods in North Korean markets is directly related to North Korean authorities’ measures to control foreign currency, and Chinese Yuan, in particular.

Confidence in the value of North Korean currency has plummeted, and North Koreans are scrambling to grab up foreign capital as rumors circulate of further currency reform. Residents are trying to get their hands on Chinese Yuan, but North Korean authorities are working to prevent it due to concerns of Chinese dominance over the North’s economy. In order to block Chinese inroads into the North Korean economy, the government has banned the import of Chinese currency, and this is a major factor driving North Korean inflation today.

North Korea brought in 13,834 tons of grain from the neighboring ally in January, a 3.6-fold increase from 3,869 tons in January last year, said Kwon Tae-jin, a senior researcher on the North’s agricultural sector at the South’s Korea Rural Economic Institute in a posting on his blog.

Rice accounted for about 61 percent or 8,425 tons of the North’s grain import from China, followed by corn with 3,448 tons, beans with 1,553 tons and wheat with 304 tons, Kwon said, citing data from the Korea International Trade Association.

“The big rise in imports of corn and beans, which the North didn’t bring in last year, appears to be not only because corn harvests were not good, but it also suggests the North increased imports over concerns about possible food shortages,” he said.

Kwon also said that the North’s regime could have increased imports to enlarge state food rations after last year’s currency reform caused strains on the country’s food supply system.

North Korea has relied on foreign handouts to feed its 24 million population after natural disasters and mismanagement devastated its economy. The situation worsened in recent years as South Korea halted regular food aid to the North after President Lee Myung-bak took office in early 2008 under a policy to link aid to Pyongyang’s process in ending its nuclear weapons programs.

… 

The U.N. food agency, Food and Agriculture Organization, said early this month that the North is expected to be short of about 1-1.2 million tons of food this year.

I think the data for this story came from this KITA web page, but I can’t be sure since my Korean is exceptionally limited. Here is a description of the KITA page in English.

On a personal note, I wish the major South Korean media outlets  would get into the habit of posting links to their sources.  It is not difficult to do this.  

Read the full article here:
N. Korea’s food imports from China more than triple in January: expert
Yonhap
3/12/2010

Chinese officials have announced plans to increase the number of Chinese tourists visiting North Korea from the border region of Yanbian 延边 and are hoping to involve South Korean airlines and to include Vladivostok on the itinerary, a Chinese website reports.

The head of the Yanbian tourism bureau, Jin Chengwen 金成文 (Kim Seong-mun), was quoted as saying they were investigating plans for tours starting in the main city in the region, Hunchun 珲春, which would take in the Russian Pacific port of Vladivostok and Baekdusan 백두산, a mountain on the Sino-Korean border that is the purported birthplace of leader Kim Jong-il, as well as tours from the North Korean port of Rajin 라진 to Pyongyang and Panmunjom.

He said he hoped Korean Air and other South Korean and Chinese airlines would become involved, but gave no details. It was hoped that Chinese tourists would not need passports to visit North Korea, he added.

Another Yanbian tourism official said there were already tours from the border town of Sanhe 三合 to the industrial city of Chongjin 청진 and Baekdusan and to Samji lake (Samjiyeon 삼지옌), a scenic spot near Baekdusan, and Pyongyang, and they were hoping to add a Rajin-Pyongyang-Panmunjom tour. “North Korea is hoping more Chinese tourists will come and tour their country,” he added.

The report said the tourism plans were connected to an agreement announced this month under which China gained the use of a pier at the port of Rajin 라진 for 10 years to help the development of the border region and give Jilin province access to the Pacific.

As NKEW reported last year, Chinese officials are also talking about cruises from Hunchun to the North Korean port of Raseon 라선 (Rasŏn/Naseon/Nasŏn) (which somewhat confusingly seems to be the same as Rajin), Sokcho 속초 in South Korea, just south of the DMZ, and Vladivostok.

North Korea is also hoping to attract tourists from southern China, and has cast its eye on Guangdong province as well as Shanghai.

Also see “China to Offer Railway Tours to N.Korea” in the Choson Ilbo:

A new train service is being offered in China for tours to North Korea. One news website based in China’s Zhejiang Province reported on Wednesday that a large travel agency in the region will offer railway trips from Hangzhou to Sinuiju from April 20.

The trains have 14 sleeper carriages and can transport 800 passengers. They pass Beidahu in Hebei Province and Dandong, Liaoning Province before arriving in Sinuiju, where Chinese passengers will transfer to a North Korean train and embark on an 11-day tour that includes stops in the border truce village of Panmunjom, Mt. Myohyang and the childhood home of former North Korean leader Kim Il-sung. The tours will cost 5,280 yuan for first-class compartments and 4,680 yuan for regular ones.

“Until now, people in Zhejiang Province visited North Korea by flying from Hangzhou either to Beijing or Shenyang and transferring to trains,” said a spokesman for the tour agency. “But the train tours are both cheaper than existing options and offer more sightseeing stops including Beidahu and Dandong, so more than 300 people have signed up already.” China halted tours to North Korea in February of 2006 but decided to start them again this year.

Chinese tourists will not be able to bring mobile phones into North Korea and will also be banned from carrying cameras with zoom lenses and face restrictions on traveling alone in the communist country.

Finally, more information on Chinese tourism has been published in the Donga Ilbo:

Tours of North Korea for Chinese tourists resuming next month have started to be sold in Beijing and Guangdong province, the China Daily said yesterday.

Five to six licensed tour agencies are recruiting Chinese tourists for travel in North Korea in mid-April. As many as 200 people from Beijing alone will visit next month, the daily said.

A few tour packages are up for grabs. A Chinese state-run travel agency is offering a six-day package and a three-day package. For both, tourists will travel by plane but must do so via Hangzhou, Beijing, the North Korean capital of Pyongyang, and Shenyang, so two full days will be needed to get to and from North Korea.

The three-day package is a brief visit to Pyongyang and costs 3,380 yuan (495 U.S. dollars). The six-day tour costing 6,280 yuan (920 U.S. dollars) covers many parts of North Korea. Tourists will visit the day after their departure Mansudae Grand Monument and Chollima Statue in Pyongyang. From the third day, they will go to Panmunjom in Kaesong, beaches in Wonsan, Mount Kumgang, and then back to Pyongyang.

The six-day package could also include a tour to Mount Myohyang. Tourists can also choose to attend a performance celebrating the birthday of North Korea’s late leader Kim Il Sung April 15.

The tourists will also receive a long list of “don’ts.” They will be banned from making noise, mimicking Kim’s postures in front of his statue, and commenting on North Korea’s leaders, politics, military and economy.

Another big no-no is the taking of photos on the trip from Shinuiju to Pyongyang, streets and markets, and images conveying a negative impression of the communist country.

Tourists also must call South Korea “South Korea” instead of the Republic of Korea. They will also be required to leave at immigration offices mobile phones, products with the South Korean or U.S. flag and other symbols of these nations on them, and magazines with open covers upon entering North Korea.

The list also says few public phones are on North Korean streets, adding tourists can make phone calls only at hotels for 16 yuan (2.30 dollars) per minute.

BNP Paribas SA, France’s biggest bank, in 1997 created bonds denominated in Deutsche marks and Swiss francs secured on non-performing loans owed by the Foreign Trade Bank of the Democratic People’s Republic of Korea. The notes mature today, and Exotix plans to issue new ones with about a 10-year tenor.

“There are very few investments left in the world like this,” Andrew Chappell, head of London emerging market fixed- income for Exotix, a broker specializing in distressed securities, said in a telephone interview. “The North Korean bonds are very cheap,” they may rise on signs of improved international relations and they are easier to trade than the underlying loans, he said.

President Kim Il Sung drove North Korea to become the first communist nation to default 34 years ago by spending almost a third of gross domestic product on its military. The United Nations toughened sanctions on son Kim Jong Il’s government after it detonated a second nuclear device in May, deepening an economic crisis that forced North Korea to revalue its currency in November by removing two zeros from the face value of the won.
…
“Investors have good reason to hold the notes even by extending them,” said Dong Yong Sueng, a senior fellow in the economic security team at the Samsung Economic Research Institute in Seoul. “They hope that the South Korean government may take over North Korean debts and repay them if the communist state collapses or the regime changes.”

About 320 million marks and 240 million francs ($225 million) of the zero-coupon 1997 bonds are outstanding, according to data compiled by Bloomberg. Exotix last quoted them at 12.75 percent of par value as of March 8 from 11.5 percent a month earlier and 33 percent in December 2007.

While prices that low may be attractive to investors willing to take a five- or 10-year bet, “there are just so many better opportunities for investing in high-risk assets,” Richard Segal, director of emerging markets fixed-income at Knight Libertas Ltd., said in a phone interview from London.

“I don’t see much value in the notes even at 10 or 11 percent of par because I see no willingness of North Korea to reschedule the underlying loans and no willingness of South Korea to pay them off short of unification,” he said. That’s “unlikely for a long time.”
…
North Korea is overhauling its legal system in a bid to attract as much as $400 billion in foreign investment over the next decade, almost 20 times current GDP, South Korea’s MBC television reported on March 4.

Read the full story here:
North Korea bonds due today spur exotix bet on political change
Businessweek
Jungmin Hong
3/11/2010

“Wealthy people in Pyongyang prefer goods to cash as they have lost confidence in the North Korean currency since the reform,” it said. “Demand for South Korean goods, which are considered best quality, has more than doubled.”

The broadcaster quoted a Korean-Chinese trader dealing with the North as saying, “Growing numbers of people want to smuggle South Korean products and sell them in the North despite a crackdown by North Korean customs.” It said the widespread perception among North Koreans is that South Korean goods are of much better quality than Japanese or Chinese products.

Sinuiju Customs Office lets small quantities of South Korean goods that do not seem to be for sale pass through on condition that they do not carry “Made in Korea” labels, but is strict about seizing larger quantities.

Favorite products include luxury goods like necklaces and earrings, electronic home appliances such as TV sets, DVD players, digital cameras, and notebook computers, toiletries, air fresheners, and clothing.   

Pyongyang is believed to be home to an estimated 1,000 dollar millionaires, the radio station said. 

I am a bit skeptical about this story.  Given the DPRK’s monetary history, I understand the need of North Koreans to “get out of cash,” but the number of individuals hoarding South Korean goods has to be small.  Jewelry aside, manufactured goods are not a reliable store of value.  They are hard to hide, difficult to transport, they break down, and require electricity.  As for televisions, South Korean TVs operate on NTSC (like the US) and North Korea uses PAL (presumably the “South Korean” TVs are made for the Chinese market and operate on PAL–thanks Gag).  

Why not stick with Yuan?

Also, Japanese goods have been considered the paragon of quality in the DPRK for decades.  Is it realistic to assume that attitudes towards South Korean goods have changed so much so quickly? 

UPDATE: A strong counterpoint to my intuition comes from Dr. Lankov.  He notes:

Well, in the USSR of my youth many people did just that. They hoarded industrial goods, in spite of all above mentioned shortcomings. TV sets, VCRs, furniture, glassware, even books. There was a major difference, though: in the the USSR it was strictly illegal and, indeed, risky, to be possession of foreign currency.

Also see this IFES report. 

Read the full story here:
Wealthy N.Koreans Hoard S.Korean Goods
Choson Ilbo
3/11/2010

I visited Hamhung many times before defecting to South Korea, and whenever I went I felt distinctly uncomfortable. Hooligans clustering at the railroad station glared at the goods carried by pedestrians and provoked quarrels if they thought you were looking at them. At construction sites in Pyongyang, the word was that Hamhung people were wild. Often there were gang fights at project sites where tens of thousands of youths from different regions had been mobilized, and Hamhung youngsters were always the most violent. The city was home to the greatest number of organized gangs, and even police officers couldn’t handle them. Hamhung also has more access to outside world as it is an intermediary place through which all things coming in through the northern border with China pass.

As long as 20 years ago, markets in Hamhung were so active that almost everything was available there. It was here, among other cities, that market traders rioted in the wake of a recent disastrous currency reform since they suffered greater damage due to the bigger size of the markets.

I also got the impression that many young people in Hamhung listened to South Korean broadcasts, and those who didn’t know South Korean pop songs were treated as country bumpkins. The people there struck me as more resilient than in any other city, and that may be a reason that the city often sees public executions.

Read the full story here:
Kim Jong-il’s Visit to Hamhung Is a Bad Sign
Choson Ilbo
Kang Chol-hwan
3/11/2010

North Korea is actively looking into further development of Rajin Port by extending China’s lease on port facilities for another decade, and granting Russia 50-year rights to Rajin port facilities, as well. Li Longxi, a deputy of the National People’s Congress and head of Jilin Province’s Yanbian Korean Autonomous Prefecture, revealed to a Yonhap News reporter in Beijing on March 8, “The North gave Russia the right to use Pier 3 for 50 years, and is actively looking into extending the right to use Pier 1 granted to China in 2008 for another 10 years.”

Rajin Port has five piers, with Pier 3 being larger than Pier 1. The rights to Pier 1 were granted to the Changli Group, which specializes in the manufacture of environmental materials in Dalian. 10-year use and development rights had already been granted to this company. Deputy Li explained, “China gained rights to Pier 1 in 2008, and is now in negotiations with North Korea over extending those rights for 10 years.” Therefore, if this agreement is reached, China will have exclusive rights to the pier until 2028.

Li added, “Currently, China is in the process of constructing the facilities necessary to use the pier, and will begin to move goods through the port when construction is complete.” It appears China has invested tens of millions of Yuan into this project. Li also pointed out that by being able to use Rajin Port, Yanbian, currently lacking export avenues, will be able to transport Jilin Province’s abundant coal resources, not only through the Yellow Sea to Shanghai and other domestic cities, but to Japan and other countries in the Asia Pacific region.

On February 28, Sun Zhengcai, CCP Secretary of Jilin Province met with North Korean Kim Yong Il, head of the Korean Workers’ Party International Department, and introduced to him China’s ‘Greater Tumen Initiative’ development project. At the time, it was reported that Sun explained to Kim that Jilin provincial authorities had reached an agreement with North Korea for joint venture to construct a network of roads and basic infrastructure facilities. Jilin provincial and city officials, as well as Changchun city representatives, are involved in the project. China is focused on the Tumen river basin and Rajin Port because of their strategically valuable economic role in developing the country’s straggling northeast region.

Russia is also eyeing Rajin Port, because if the port is developed, it could serve as an outlet to export Sakhalin and Siberian crude oil and natural gas to neighboring countries. In July of last year, Russia and North Korea reached an agreement to repair the rail connection between Rajin and Hasan and to improve Rajin Port facilities, investing 1.4 billion Euros. Japanese newspaper Sankei Sinbun quoted a source within North Korea as reporting that Jang Song Thaek, Party administrative chief and brother-in-law of Kim Jong Il, had recently travelled to Rasun (Rajin + Sunbong) and declared that the area would be fully developed within the next 6 months.

The Korea Daepung International Group, serving as North Korea’s window to foreign capital, is said to have a plan to entice international investment in order to support the Tumen river development plan, and plans to develop Rasun Special City and Chongjin Port into key outlets for DPRK-PRC-Russian trade and commerce in Northeast Asia. However, the participation, and investment, of private-sector enterprises will likely depend on the success of the Rajin Port development.