Fishing investment push from North Korea has encountered deep skepticism from Chinese investors. Officials from provincial fishery stations traveled to Dandong and Donggang in Liaoning province during late March. They met with local traders and private investors to pitch joint ventures. The Ministry of Fisheries oversees the country’s state-run fishing and marine farming enterprises. The delegation also held separate meetings with companies in Shandong province. These companies deal in vessels and fishing equipment.
The North Korean side proposed cooperative ventures utilizing fishing grounds in both the East and West Seas. They requested upfront Chinese investment in vessels, equipment, and operating funds. Specifically, officials called for large fishing boats of 7,500 horsepower. They also requested fishing nets, other gear, and fuel costs. The proposed structure follows a classic resource-for-capital formula. North Korea would provide fishing grounds and labor for the ventures. The Chinese side would supply investment and equipment for operations. Catch would transfer directly to Chinese partners at sea.
North Korea also proposed establishing aquaculture farms and transferring related technology. This signals an intent to expand beyond basic fishing into marine farming. Officials reportedly emphasized that initial investment could be fully recovered through fish and seafood yields. They pressed potential partners to commit to the deals.
Those who had previously invested in North Korea and lost money were especially cautious. Some Chinese investors entered North Korea’s fishing sector between 2003 and 2013. They put in 2 million to 5 million Chinese yuan, roughly $275,000 to $688,000. These investors could not recover their funds and ultimately withdrew from the ventures. Even investors who initially turned a profit later faced severe disruptions. Many were forced to suspend operations during the COVID-19 period. North Korea sealed its borders during that time. Some investors departed without being able to retrieve their assets.
The fishing industry is widely seen as delivering almost no returns compared to other sectors, the source said. Investors who previously lost money in North Korea are approaching this particularly cautiously. Some Chinese investors signaled conditional interest in new deals. They demanded direct operational control over any joint venture. The previous model provided capital and technology while leaving management to the North Korean side. Hands-on management would reduce exposure to the risks that have burned past investors. North Korea did not accept that counter-proposal. Both sides deferred to further discussions at a later date.
This outreach is consistent with a broader pattern of North Korean attempts to attract foreign private capital. Similar efforts have emerged in recent months across multiple sectors. Whether such efforts will eventually extend to other productive sectors remains to be seen. Chinese investors remain wary after decades of difficult experiences. North Korea will need to offer better terms or guarantees to secure future investment. The current stalemate reflects deep mistrust built up over many years.
