“Rason, the oldest and largest of North Korea’s 29 economic development zones, has been central to the country’s push to attract foreign investment. It has one of North Korea’s first and biggest markets, was the site of the country’s first mobile network, and is the only place where North Korea legalised buying and selling homes in 2018, according to experts and North Korea’s government publications. Once a North Korean experiment in limited capitalism, the Rason Special Economic Zone appears to be the epicentre of the isolated country’s growing cooperation with Russia, experts say, including possible shipments of arms for the war in Ukraine.
In recent months, there have been clear signs that the area is poised for a comeback, with ships docking there for the first time since 2018, and satellite imagery suggesting a spike in trade from both the port and a rail line to Russia.
Although China – with its vastly larger economy and deeper historic ties with North Korea – might seem the obvious driver of a recovery in Rason, experts say the country’s deepening cooperation with Russia may make a more immediate impact.
“Now that North Korea and Russia are becoming very close against the backdrop of the Ukraine war, Russia might send more tourists to North Korea, which can reinvigorate tourism (in Rason),” said Jeong Eunlee, a North Korea economy expert at South Korea’s government-run Korea Institute for National Unification.
More at Reuters:
https://www.reuters.com/world/asia-pacific/north-korean-special-economic-zone-poised-revival-new-russia-trade-2023-11-29/