History of Korean War
History between North and South Korea is very complicated and difficult due to the reasons of inclination of politics with different ideologies of two countries; Democracy and Communism. This circumstance being more complicated because of Korean War. Before the war, Korea was one nation and illegally occupied by Japanese for 35 years until the end of the World War II. At that time the superpowers such as United States and Soviet Union have been involved in Korean government. The Democratic People’s Republic of Korea or North Korea is a sovereign nation in East Asia bordering China, Russia, and South Korea. The culmination of World War II divided the Korean Peninsula into two distinct zones including North Korea and South Korea. The United States occupied and influenced South Korea, but the Soviet Union had control over the North Korean territory. (Stueck, 1995) The occupation and effects of the Capitalist and Communist superpowers significantly influenced and shaped the cultures of the two countries. North Korea has a communist or socialist culture with a military dictatorship under the regime of supreme leader Kim Il-Sung. North Korea is one of the most concealed or secluded societies in the world primarily due to the policies of the government. For these reasons, North and South Korea still divided into two countries for 71 years.
Economy and present situation of North Korea
North Korean culture is distinct and disconnected from almost all cultures of the world primarily due to the lack of western influence. However, the communist ideologies provide an excellent commercial potential for business persons from China and Russia due to similar cultural or ideological backgrounds. On the other hand, the revised policies of the government also opened business prospects for business persons from western nations. This would allow international players to invest in the market where they can proper with the advent of time. However, organizations have to comply with the strict policies of this nation. Although the country has a closed society, the capital city of Pyongyang resembles some of the most developed metropolitans in the world. Pyongyang offers a considerable amount of business opportunities for foreigners, especially in the context of tourism, food, and transportation. The Mountain Kum-gang resort in the special tourism zone is the perfect example of business opportunities for foreign organizations in North Korea (Lee, Bendle, Yoon, & Kim, 2012). The recent economic growth of the country, especially in the capital city, increased the business potential for many organizations. However, foreign companies have to consider and acknowledge the culture, traditions, customs, and beliefs of the local population and government.
The cultural disparities and inhospitable policies of the government discouraged most foreigners to consider business opportunities in North Korea. Different organizations planned investments in this region, but they backfired because of the strict local policies. However, the revised policies of the government since the 1990s and economic or commercial relations with neighboring countries improved the business atmosphere. The government established Special Economic Zones to facilitate foreign companies and organization in the country. The Special Economic Zones played a vital role in attracting foreign investment in the country due to the flexible policies of the administration (Weston, 2013). The liberal policies, attractive business opportunities and developed infrastructure of urban areas provide excellent business for foreign investment, especially in tourism and transportation. The lack of Western-style fast food restaurants in the country offers good business prospects for international fast food chains. However, the political conflicts with several countries, including the United States, South Korea, and other Western nations considerably dissuade the economic ambitions of North Korea.
North Korea started a regime through which they focused on different international investors so that they can invest in this region and attain beneficial returns. The regulations were relaxed to a considerable level mainly to benefit international investors. After developing an open-door policy, North Korea developed a legal economic framework for external cooperation of economic development. Revision of the laws is a blessing for different governmental decision makers and international vendors because this would enhance the overall economic flow in the region. The laws of DPRK changed with the advent of time, but the decision makers did policy making on every business-oriented scenario (Yong-Joong, 2000). The revised the laws for joint ventures and franchising systems too.
Decision makers focused on the ideology that local people and the core culture of this region should play an important in different business scenarios of North Korea. Business opportunities in this region are humongous and it all depends upon the policies through which they can attain beneficial returns in the longer-run. The lawmakers in the current era begin to realize that globalization changed the overall business scenario of different regions. However, people should also accept the fact that they must incorporate cultural values in different business scenarios.
Conclusively, business opportunity in North Korea was initially a difficult scenario for different foreign investors, but due to the relaxation of numerous laws, several international investors entered this region. The policy makers realize the fact that they have to stay abreast with the changing ideologies of the world and they cannot continue to isolate them with the rest of the world. However, supreme command of the government still holds the right to take decisions.
References
Lee, C. K., Bendle, L. J., Yoon, Y. S., & Kim, M. J. (2012). Thanatourism or Peace Tourism: Perceived Value at a North Korean Resort from an Indigenous Perspective. International Journal of Tourism Research , 14 (1), 71-90.
Weston, C. (2013). North Korea and its Special Economic Zones: Re-Establishing Networks with the World Economy? Research Papers of the Wroclaw University of Economics (295), 93-108.
Yong-Joong, L. (2000). Development of North Korea’s legal regime governing foreign business coorperation: A revist under the new socialists constitution of 1998. Northwestern Journal of International Law and Business , 21-199.
Stueck, W. W. (1995). The Korean War: An international history. Princeton, NJ: Princeton University Press