Kim Jong-il in Free Economic Zone

 

 

"It is very important to abide by the principle of the credit-first policy in foreign trade," Kim was quoted as saying. 

 

He also told workers there to obey "export discipline and improve the quality of goods." 

 

According to reports, some hotels and casinos run by Chinese firms are currently located in the zone. 

Korea Times reported that North Korea and Russia, who have invested $20.2 million, agreed to improve Rajin port, the largest in Rason, and restore railways linking Rajin and Hasan in July last year. 

 

In addition, the North reportedly agreed with China to make joint efforts to transform Rajin port into an international logistics hub. So why is this so important?

Because of logistics the northeastern provinces have stumbled as the rest of China gallops forward.

To the left, is Russia, and to the right, North Korea. It's not for lack of manpower or know-how that the northeast has lagged behind. Rather, it is logistics: restricted transportation routes.

China's border here is just 16 kilometers from the Sea of Japan, meaning anything produced in these upper regions must be transported down to the major port cities in China and then shipped around the Korean Peninsula unless it can go by North Korea..

Rason International Logistics, a joint China-North Korea venture company, won the right to use Rajin Port in Rason, on North Korea's northeast coast, for five decades. Now North Korea is actively supporting the area and with Kim Jong-il putting his personal stamp of approval on the area matters may now move more quickly.