It is not the only foreign company helping North Korea become a "mighty and
prosperous nation" by 2012 – the stated aim of Pyongyang’s regime.

Although perceived as a hermit kingdom, impoverished North Korea is pushing to
increase its already surprising number of foreign investors.

Last month, the country announced that it was setting up a state development
bank to encourage foreign investment, on the instructions of North Korean
leader Kim Jong-il.

Another body – the Korea Taepung International Investment Group – will help
attract foreign funds to the bank. Taepung’s deputy head is a prominent
Korean-Chinese businessman, sparking suggestions the bank will focus on
China, the country’s main trade partner already active in North Korea’s
mining sector.

South Korean media have reported that Beijing and Pyongyang will jointly
repair a railway from northern China to the North Korean port of Chongjin.
This harbour could prove significant to global trade as China’s extreme
northeast has no direct maritime access.

North Korea is also looking beyond Asia, even seeking to increase the number
of tourists from its arch-foe, the US.

Its key focus is on natural resources. Irish oil company Aminex says it was
"warmly received" in Pyongyang last November and was assured that stalled
exploration would likely restart.

Colin McAskill, executive chairman of London-based financial adviser Koryo
Asia, says the North Koreans are keen for him to start investment in
projects to process minerals domestically. This will help Pyongyang add
value to exports.

Dutch delegation
Pyongyang is also seeking investors to work on the Taedonggang brewery, a
plant it bought and shipped from Britain a decade ago.

In February, a North Korean trade delegation is due to visit Europe, according
to Paul Tjia, a Dutch consultant who is organising a European business
delegation to Pyongyang in May. He hopes to take 10 to 15 potential
investors.

Mr Tjia, founder of GPI Consultancy, says European companies have been using
North Korea's low-cost IT outsourcing sector to design web sites and
software for administration, mobile phones and computer games.

"It is a surprising fact but the level of IT knowledge is high and they are
very aware of the latest software. North Korea has put a lot of effort into
IT development, training and technical universities," he says. European
studios are also known to be outsourcing the illustration of cartoons to
North Korea, he adds.

Although workers are cheap and technically capable, there are huge obstacles
to investing in the poor one-party state. Pyongyang has a grim human rights
record and is under tighter sanctions for detonating a second atomic warhead
last May. It is effectively cut out of the global financial system,
including the World Bank and International Monetary Fund.

North Korea's national ideology of "Juche" is often translated as
"self-sufficiency", but investors stress Pyongyang is happy to offer
incentives to outsiders as long as sovereignty is respected.

Ken Frost, a director of Phoenix Commercial Ventures, a company involved in
North Korean joint ventures making electronics, software and artificial
flowers, says the country's 25 per cent corporate profit tax has been cut to
10 per cent for foreigners. He expects further incentives to be offered this
year.

It is still unclear what direction international diplomacy will take on
Pyongyang's atomic bomb programme this year and much may depend on whether
South Korea brokers a summit.

Whatever happens, Remy Lardinois, managing director of Pyongsu Pharma, a Swiss
drugs joint venture, says Pyongyang will be open for business.

"The Democratic Peoples Republic of Korea has always been looking for foreign
investment, even in times of political crisis," he says. "Picking the right
local partner is what really matters."

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