DSME and China’s Rilin Group to Jointly Invest in North Korea [REPORT]

north korea china border HwanggeumpyongSEOUL (Dow Jones)–South Korea’s Daewoo Shipbuilding & Marine Engineering Co. (042660.SE) and China’s Rilin Group will jointly invest in constructing an industrial complex in North Korea’s Hwanggeumpyong special economic district, The Dong-AIlbo reported Saturday citing the Korean firm.

Daewoo Shipbuilding told the paper that it and Rilin Group will jointly construct a dockyard for ship repair as well as steel structure business facilities in Hwanggeumpyong and Dandong, China. Financial terms are being negotiated, the company told Dong-A, adding that the company plans to make a formal announcement in April.

The papers said Hwanggeumpyong, a small island on the border with China, is linked to Chinese territory due to long-term sedimentation. Daewoo in January signed a memorandum of understanding with Rilin for possible business tie-ups in areas like shipbuilding and vessel repair.

Newspaper website: http://www.donga.com

-By Seoul Bureau, Dow Jones Newswires