Subtitles section Play video
-
It may look like your typical fast food joint,
-
but the businessman behind this Singapore-based
-
restaurant has made history in North Korea.
-
He opened the country's first fast food restaurant
-
in Pyongyang back in 2008.
-
But who would want to do business with North Korea?
-
It's not as unpopular as you think.
-
At least 80 countries traded with North Korea last year.
-
North Korea continues to be hit by U.N. and
-
American sanctions, but that hasn't
-
stopped its economic growth.
-
In fact, its economy grew at its fastest pace
-
in nearly two decades last year,
-
with its GDP expanding 3.9 percent,
-
surpassing its neighbor South Korea.
-
North Korea's top trading partners vary
-
depending on which source you look at,
-
but no matter how you slice the data,
-
North Korea's most important ally is China.
-
The Chinese border town of Dandong is separated
-
from North Korea by just half a mile.
-
At least 80 percent of North Korea's trade is with China,
-
and two-thirds of that trade reportedly goes through
-
this single-laned bridge connecting the two countries.
-
Coal is North Korea's largest export
-
and last year, China bought $1.2 billion worth of it.
-
The Chinese also have a huge appetite for its seafood,
-
which is perceived to be cleaner and tastier.
-
In the first half of this year alone,
-
the Chinese bought almost
-
$100 million worth of seafood.
-
China has been putting more pressure on its neighbor.
-
It suspended coal imports and banned banks
-
from providing financial services to North Korea.
-
In September, Chinese sanctions began to bite.
-
Chinese imports of coal were down more than 70 percent,
-
while its exports of petrol fell by almost 100 percent.
-
Sino-Korean ties seem to be cooling.
-
When North Korean leader Kim Jong Un
-
sent Lunar New Year greetings this year,
-
the first card didn't go to Chinese leaders,
-
but instead to Russian President Vladimir Putin.
-
Russia and North Korea go way back.
-
The Soviet Union made up half of North Korean trade
-
for almost thirty years, until it collapsed in the 1990s.
-
But Russia is ramping up its involvement.
-
It announced in 2015 that it wants to increase trade
-
with North Korea ten-fold to a billion dollars by 2020.
-
But they aren't quite there yet.
-
Bilateral trade between the two countries
-
decreased from 2013 to 2016.
-
But in the first quarter of this year,
-
Russia's trade with North Korea more than doubled
-
to $31.4 million year-on-year.
-
President Vladimir Putin recently said Russia exports
-
40,000 tons of oil to North Korea a quarter.
-
So that's about 160,000 tons a year.
-
That's a fraction compared to China,
-
but also more than four times what
-
the U.N. estimated for Russia in 2015.
-
But it's not just limited to trade.
-
Siberia faces persistent labor shortages.
-
Enter North Korean labor.
-
The U.S. State Department estimates that around
-
20,000 North Koreans are sent to Russia
-
to work for Russian companies,
-
making an estimated $170 million for the regime.
-
It's estimated that more than 50,000 North Korean
-
workers are employed in foreign countries,
-
mostly in Russia and China,
-
but also in countries like Qatar, Malaysia and Poland.
-
North Korea is estimated to make
-
$1.2 and $2.3 billion annually from exported labor.
-
North Korea is big on defense,
-
so maybe it's no surprise that
-
it sells weapons to a vast global network.
-
Sources estimate that North Korea made $300 million
-
in arms sales in 2015,
-
and its list of clients is large and varied.
-
The U.N. intercepted two North Korean arms shipments
-
to the Syrian government this year,
-
as well as 30,000 grenades to Egypt.
-
Other North Korean customers include Iran and Yemen.
-
Another important piece of the
-
North Korean money-making machine is Africa.
-
Goods traded with North Korea across Africa
-
amount to more than $100 million annually.
-
The U.N. is investigating seven African countries
-
for possible violations of its sanctions on North Korea,
-
ranging from military training to weapons sales.
-
In the midst of a lot of this activity seems to be
-
North Korean-owned enterprise
-
Mansudae Overseas Projects,
-
which is behind several huge
-
construction projects across Africa,
-
building everything from ammunition factories
-
to apartment blocks to giant statues.
-
The U.N. estimates that tens of millions are
-
being made by Mansudae in Africa.
-
It's clear that North Korea
-
is eager to drum up new business.
-
It even published a new guide
-
on its investment and business environment.
-
But as geopolitical tension grows and more
-
countries suspend trade with the Communist state,
-
North Korea's business ambitions may have to stay put.
-
Hi, thanks so much for watching.
-
You can check out more of our videos here and here.
-
We're also taking your suggestions for
-
anything you want explained, or reported on.
-
Remember to subscribe and see you next time!
