Why invest in North Korea? Chinese foreign direct investment in North Korea and its implications

Heon Joo Jung, Timothy S. Rich

Research output: Contribution to journalArticlepeer-review

17 Citations (Scopus)


North Korea has been regarded as the least likely place to attract foreign investors due to its poor infrastructure, policy reversals, and totalitarian regime. However, the recent growth of Chinese direct investment in North Korea has drawn much attention due to its implications for the North Korean economy and regional stability. This research provides an analytical framework by considering two fundamental issues that any foreign investor takes into account when making an investment decision: property rights protection and profitability. It examines how recent changes have influenced these two issues, which, in turn, shaped the incentive structure of Chinese private investors.

Original languageEnglish
Pages (from-to)307-330
Number of pages24
JournalPacific Review
Issue number3
Publication statusPublished - 2016 May 26

Bibliographical note

Funding Information:
This work was supported by the National Research Foundation of Korea Grant funded by the Korean Government [NRF-2013S1A5A8024045]; the POSCO TJ Park Foundation's Research Grant for Asian Studies [2013-11-0111]

Publisher Copyright:
© 2015 Taylor & Francis.

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Sociology and Political Science


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