The list of banks in North Korea can be found on Wikipedia, which includes six banks: Chinmyong Joint Bank, Civilian Cooperation Bank, Daedong Credit Bank, Daesong Bank, Foreign Trade Bank of the Democratic People’s Republic of Korea, and Kumgang Bank. North Korea’s central bank, the Central Bank of the Democratic People’s Republic of Korea, also has branches across the country.
Additionally, North Korea has special banks such as the Foreign Trade Bank that handle foreign transactions, and the Korea Bank that deals with foreign currency trading. It is possible for a foreign citizen to open an international bank account in North Korea, offering potential advantages based on economic regulations and tax structures.
However, due to sanctions imposed by the United States and other countries on North Korea, it may be difficult to transact with North Korean banks.
Major State-owned Banks In North Korea
North Korea has several state-owned banks, including the Chinmyong Joint Bank, Civilian Cooperation Bank, Daedong Credit Bank, Daesong Bank, Foreign Trade Bank, and Kumgang Bank. The country also has a mono-bank system where the central bank has branches in various regions.
Major State-Owned Banks in North Korea North Korea has a centralized economy and the government owns most of the banks in the country. The major state-owned banks in North Korea are Korea Development Bank (KDB), Central Bank of the Democratic People’s Republic of Korea, and Foreign Trade Bank of the Democratic People’s Republic of Korea (FTB).
Korea Development Bank (KDB)
The Korea Development Bank (KDB) is a government-owned policy bank and operates as a principal financier for the North Korean government’s strategic economic ventures. Its primary objective is to promote economic growth and development of the country by providing financial assistance to government-owned entities. The KDB operates as an investment bank and provides loans to various industries such as energy, technology, and infrastructure.
Central Bank of the Democratic People’s Republic of Korea
The Central Bank of the Democratic People’s Republic of Korea is the sole bank that is authorized to issue currency and control its circulation in North Korea. The Central Bank also regulates monetary policy. It is responsible for maintaining price stability, managing foreign exchange reserves, and enhancing the payment system for the country. It has branches in various regions across the country.
Foreign Trade Bank of the Democratic People’s Republic of Korea (FTB)
The Foreign Trade Bank of the Democratic People’s Republic of Korea (FTB) is the primary institution responsible for conducting international trade. The bank provides financial services related to export and import transactions for the North Korean government and trading partners. The FTB has correspondent banking relationships in various countries to carry out financial transactions. It operates as an intermediary between North Korean firms and foreign buyers and sellers. In conclusion, North Korea’s banking system is centralized, and the government owns most of the banks. The major state-owned banks, KDB, Central Bank of the Democratic People’s Republic of Korea, and FTB, play a crucial role in North Korea’s economic growth and development.
Joint Venture Banks In North Korea
North Korea has various banks, including Joint Venture Banks such as Chinmyong Joint Bank and Kumgang Bank, along with other notable banks including Foreign Trade Bank of the Democratic People’s Republic of Korea, Daedong Credit Bank and Civilian Cooperation Bank.
The country follows a mono-bank system with the central bank having branches across various regions. Confidus Solutions also mentions that foreign citizens can open a bank account in North Korea with the right paperwork and initial outlay.
Joint Venture Banks in North Korea North Korea, being an isolated economy, poses several challenges for foreign investors. However, Joint Venture Banks have taken on the responsibility of catering to foreigners and providing payment services to foreign companies doing business in North Korea. These banks are jointly owned by the government of North Korea and foreign investors.
Daedong Credit Bank
Daedong Credit Bank is a North Korean joint venture bank with Italian investors. Established in 2010, it offers a full range of banking services like deposit-taking, credit financing, remittances and international trade financing. The bank’s primary objective is to facilitate trade between North Korea and Italy, along with other foreign countries.
Golden Triangle Bank
Golden Triangle Bank Jang Song-thaek, the late uncle of the North Korean leader Kim Jong-un, established Golden Triangle Bank in 2010. This bank is a joint venture between North Korea, China and Burma, hence the name Golden Triangle. The bank offers services like trade financing, accounting management and foreign exchange. It primarily caters to Chinese and Burmese investors doing business in North Korea.
Kwangson Banking Corporation
Kwangson Banking Corporation is a joint venture bank established by North Korea and Hong Kong investors. The bank offers services like foreign currency deposit-taking and exchange, payment services, trade financing and other banking services to North Korean companies and foreign investors. It operates over ten branches in North Korea. In conclusion, Joint Venture Banks play a crucial role in North Korea’s economy, aimed at facilitating trade and providing payment services for foreign investors. These banks offer a wide range of services and are jointly owned by the North Korean government and foreign investors. Among these banks, Daedong Credit Bank, Golden Triangle Bank and Kwangson Banking Corporation are significant players in North Korea’s banking sector.
Foreign Banks Operating In North Korea
North Korea has a variety of banks, including the Central Bank of the Democratic People’s Republic of Korea, the Foreign Trade Bank, and the Kumgang Bank. Foreign citizens may open a bank account in North Korea with the right paperwork and initial outlay, providing international accounts and investments that offer economic advantages.
Foreign Banks Operating in North Korea: While North Korea’s economic activity is limited, it’s not surprising to know that only a few foreign banks are operating within the country. In fact, the country allows very minimal amounts of foreign direct investment and trade. However, with the presence of some foreign banks, it’s now possible to open accounts and conduct business transactions in North Korea. Among the few foreign banks operating inside North Korea, there are three notable ones – ING Bank, BNP Paribas, and ANZ Banking Group. ING Bank: ING Bank is a Dutch multinational banking and financial services corporation. It’s one of the few banks that have ever operated in North Korea. In 1994, ING Bank established a representative office in the capital city of Pyongyang to deal with foreign exchange transactions (buying and selling North Korean won). BNP Paribas: BNP Paribas is a French international banking group. The bank also has a representative office in Pyongyang that caters to corporate and institutional clients. It offers assistance in trade financing, letters of credit and guarantees and has received sanctions waivers from the US Treasury Department for its representative office in North Korea. ANZ Banking Group: ANZ Banking Group is an Australian multinational banking, and financial services corporation. ANZ Bank set up its representative office in North Korea in May 2013. It focuses on providing financial advisory services to potential investors in North Korea, but its operations have been relatively quiet in recent years. In conclusion, the presence of foreign banks in North Korea is still relatively limited because of the country’s economic sanctions. However, the existing foreign banks, including ING Bank, BNP Paribas, and ANZ Banking Group, provide assistance to investors and firms seeking to do business in North Korea.
Conclusion
To summarize, North Korea’s banking system is unique in many ways, with a central bank and special banks responsible for foreign transactions and cooperation with civilians. With the right paperwork and initial outlay, it is possible for foreign citizens to open a bank account in North Korea and enjoy several advantages based on economic regulations and tax structures.
While the list of banks in North Korea is limited, it is constantly evolving, with new administrative changes and developments in the country’s financial system.