Chinese Investors Are Reportedly Having Big Money Trouble In North Korea; As many as 100 Chinese businessmen have reportedly holed up in hotels in downtown Pyongyang waiting to recover money invested in the country

Chinese Investors Are Reportedly Having Big Money Trouble In North Korea

Geoffrey Ingersoll | Apr. 22, 2013, 5:11 PM | 2,408 | 3

As many as 100 Chinese businessmen have reportedly holed up in hotels in downtown Pyongyang, North Korea, waiting to recover money invested in the country.

Some of these businessmen may have even been deported, the Chosun Ilbo reports citing the Chongqing Daily.

This is just the most recent case of long running risky-business in the Hermit Kingdom. A Chinese beer business in the country went belly up just last week, and just last year mineral producer Xiyang Group reportedly lost 240 million yuan ($3.8 million) in a North Korean iron mine.

“The biggest mistake Xiyang Group made was to ignore the dangers of investing in North Korea,” Jiao Qiming, head of a Chinese trading company in Dandong, told the Chosun Ilbo, “Once a dispute occurs, it is impossible to beat the North Korean government.”Dandong — one of the main trading hubs on the Chinese, North Korean border — has seen a drop in business as North Korean credit bottoms out. The city was recently closed to Chinese tourists seeking to see Pyongyang due to nuclear threats from North Korea.

The money problems for North Korea stretch back decades, but most recently their woes stem from a new round of sanctions the U.S. managed passed in the U.N. This set targeted the pockets of the business elite, which may explain why Chinese businessmen with ties to Korean elites are finding themselves in trouble.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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