With sanctions lifted on North Korea, the ambitions of our New Northern Policy can finally be realized, as we move towards connecting some of the largest consumer markets in the world.

Russia

Despite our relatively close strategic relationship with the United States, relations between Russia and the Republic of Korea have remained warm and fruitful, something which we intend to continue through our expanded avenues of cooperation.

Gas Gas Gas

The Trans-Korean Gas Pipeline would be a 1,200km natural gas pipeline connecting the industrial bases of South Korea with the Sakhalin-Khabarovsk-Vladivostok gas transmission system through the territory of North Korea’s eastern coastline. At a construction cost of $2.5 billion and an estimated timeline of 3 years, it would be a joint project between KOGAS and Gazprom to supply South Korea with 7.5 million tons of gas annually, allowing companies on both sides to save on the costs of liquefying and shipping gas as is currently done.

Infrastructure and Investment

Due to its economic situation and the DMZ, North Korean infrastructure is currently insufficient to allow the modern movement of goods and people from South Korea through to Russia and the greater Eurasian continent beyond. As such, we propose the reconstruction of a Trans-Korean Railway, running the length of the eastern coast of the Korean Peninsula from Khasan to Busan, with a junction at Wonsan, allowing two branches running horizontally to Pyongyang and Seoul. From Khasan, this will connect into the Trans-Siberian Railway, allowing the movement of peoples and freight from one end of Eurasia to the other for the first time in decades. The construction will be done jointly by Russian and South Korean companies, with North Korean labor employed, with a total estimated cost of $5 billion to be shared evenly between South Korean and Russian stakeholders. Should these infrastructure projects go ahead, there are several private investment opportunities that will now became economically enticing to their previously risk-averse investors. These include the expansion and construction of port berths and associated facilities to facilitate the movement of goods to and from Siberia at the ports of Zarubino, Slavyanka and Fokino, as well as reinvesting in the Rajin-Khasan international logistics hub. Korea Trading & Industries has also announced a plan to invest $130 million in the construction of a fish processing complex at Cape Nazimova in Vladivostok, which will include a logistic center, fish port, container terminal, and fish fillet and crab meat processing plant, which will effectively make use of the new infrastructure.

China

Infrastructure and Investments

The time has finally come to connect the Korean Peninsula into the vast transportation networks China has constructed throughout Asia and Europe. This first phase will focus on connecting freight and high-speed passenger lines from Dandong-Sinuiju through Pyongyang to Seoul and a freight line from Ji’an-Manpo through Pyongyang to Seoul, where these will connect into the wider South Korean train network. These will be joint ventures between Chinese and South Korean companies, employing North Korean workers at a cost of roughly $11.4 billion, divided evenly between Beijing and Seoul. These projects will take an estimated 4-5 years before the first goods begin flowing. Furthermore, Chinese and South Korean companies will begin working on upgrading and constructing North Koreas road and highway networks to be able to handle heavy cargo and increased usage. This will include the construction of road and rail bridges across the DMZ at Kaesong-Paju, Pyonggang-Cheorwon and Changjon-Goseong. The funds for these road upgrades will come from a Korean Peninsula development fund, for which Seoul will commit $2 billion and private investors will commit a further $500 million, both on an annual basis. The amount deposited by Chinese partners is up to their discretion.