It has been learned that North Korea intends to open the major port city of Chonjin near the northern tip of the east coast to the outside world. Having internally decided to open Chonjin as a second special economic zone after the Rajin-Sonbong free trade zone, North Korean authorities are moving military units located in and around the port city to new locations, according to reliable sources.
Having been designated as a free trade port supporting the Rajin-Sonbong zone in December 1991, Chongjin has been expanding its port facilities by inducing capital from Russia and other countries. The alleged decision to convert Chongjin into a special economic zone from a free trade port was made in the latter half of last year or earlier this year, say the sources. Should Chongjin be opened, Pyongyang is expected to encourage foreign enterprises to engage in business activities there through direct investments or joint ventures, by offering them tax favors.
Pyongyang is reported to have long considered designating Shinuiju, bordering China, as a second special economic zone. The idea, however, was said to have been scrapped out of concern that the border city, if opened, would get a direct capitalist impact from China. North Korean leader Kim Jong Il has reportedly remarked, "If Sinuiju is opened, it would be polluted by the 'yellow wind.'"
Billed as a brown coal city because it uses lignite as the main heating fuel, Chongjin may become a second free economic zone in view of possible synergy effects from its proximity to the Rajin-Sonbong free trade zone, sources speculate. North Korean authorities attach importance to the fact that Chongjin is linked with China and Russia on land and with Japan by sea, while Shinuiju is connected with China only, add the sources.
"Like the Rajin-Sonbong zone, wire fences are expected to be erected around Chongjin in order to thwart public access to the city," speculates an expert.
But some sources, noting the fact that the Rajin-Songjin free trade zone is thought to be a virtual failure, raised doubts about the alleged Pyongyang intention of making Chongjin another special economic zone.
(Lee Kyo-kwan, haedang@chosun.com)
