North Korea Leases 3,000 Acres To China To Create A Special Economic Zone

HwanggumpyongHwanggumpyong island

North Korea just signed away 3,000 acres of land to China for the next 50 years in a bid to bring money into its economy.China will create an industrial park on Hwanggumpyong island.

This is a similar deal to shared economic developments between North and South Korea — which have been limited since the Cheonan attack. These partnerships represent among the only successful financial ventures in the DPRK.

Meanwhile China gains access to a useful port. The LA Times has more:

No doubt the most attractive part of the package for China is the access to the port in Rajin, part of a larger special economic zone known as Rason. In 1860, China’s weak Qing dynasty signed a treaty that ceded a long strip of coastline to Russia, leaving Chinese Manchuria landlocked. The use of the port in Rajin makes it easier to transport raw materials from the resource-rich region of northeastern China to the industrial hubs in southern China. In December, the Dalian-based Chuangli group, which had spent $3.6 million renovating the port, shipped 20,000 tons of Manchurian coal through the North Korean port to Shanghai.

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.