Investment in NoKo?

Blueneck

Former Staff
Jun 2007
57,749
47,245
Ohio
Trump has offered to lift sanctions, according to this article, but that hasn't happened yet. If and when it does, why on earth would anyone want to invest there?



  • The potential opening up of North Korea's economy following its peace overtures with the U.S. could mean massive commercial opportunities, says investment mogul Mark Mobius.
  • Investors have noted North Korea's large, disciplined, and cheap workforce, though many question the ability of the population to catch up with a modern economy.
  • The North Korea Resources Institute in Seoul estimated in 2013 that the country's mineral reserves could be worth $6 trillion.
This bothers me. More outsourcing, more jobs going overseas to take advantage of cheap labor.

[FONT=&amp]Infrastructure and mining present the first points of interest for Mobius, the longtime executive chairman of Templeton Emerging Markets Group and founder of Mobius Capital Partners, who pointed to North Korea's population of 25 million as a boon for investors if it were to be added to South Korea's market of 50 million.[/FONT]
Market for what? They aren't going to be able to buy our stuff. IMO, this is going to benefit China more than the US.

Investment guru Mark Mobius says North Korea presents a ‘tremendous opportunity’
 
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Mar 2012
61,496
42,709
New Hampshire
Yea I dont get it either. CNBC was talking about it too and how great it would be. Cheap labor yay!
 
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Jul 2013
43,422
29,780
On a happy trail
Trump has offered to lift sanctions, according to this article, but that hasn't happened yet. If and when it does, why on earth would anyone want to invest there?



This bothers me. More outsourcing, more jobs going overseas to take advantage of cheap labor.



Market for what? They aren't going to be able to buy our stuff. IMO, this is going to benefit China more than the US.

Investment guru Mark Mobius says North Korea presents a ‘tremendous opportunity’
What better way is there to modernize a population than to get them addicted to the idea of needing "stuff"?
 
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Jul 2014
42,344
11,777
midwest
Yea I dont get it either. CNBC was talking about it too and how great it would be. Cheap labor yay!
It's a "High Risk High Reward" proposition.

If it works out, it's good for the N Koreans, and good for the investors!

If not, they knew, or SHOULD have known what they were getting into.
 
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Ian Jeffrey

Council Hall
Mar 2013
80,290
51,008
Vulcan, down the street from Darth Vader
Trump has offered to lift sanctions, according to this article, but that hasn't happened yet. If and when it does, why on earth would anyone want to invest there?
Investing in emerging markets, frontier markets, &c. - i.e., third-world countries - is a long-term strategy of pouring money into markets that have little direction to go but up. NK is at the bottom, from a capitalist perspective. You might lose your investment - emerging markets mutual funds are risky - but the potential long-term returns could be phenomenal. As far as I know, NK is not even on those lists at all. But if trade with the world is opened up, it may be a good place to put 30-year investments simply because it likely cannot get much worse. (On the other hand, least-developed countries like Yemen, for example, are probably in worse shape.)
 
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Jan 2016
57,388
54,216
Colorado
Investing in emerging markets, frontier markets, &c. - i.e., third-world countries - is a long-term strategy of pouring money into markets that have little direction to go but up. NK is at the bottom, from a capitalist perspective. You might lose your investment - emerging markets mutual funds are risky - but the potential long-term returns could be phenomenal. As far as I know, NK is not even on those lists at all. But if trade with the world is opened up, it may be a good place to put 30-year investments simply because it likely cannot get much worse. (On the other hand, least-developed countries like Yemen, for example, are probably in worse shape.)
The difference there is that Yemen is a classic example of a failed state, and failed states are sometimes classified as being in the Fourth World----and yes, are not even considered good investment opportunities. Quite obviously, North Korea is NOT a failed state!


But North Korea may be going from WMDs----Weapons of Mass Destruction----to WMDs-----Widespread Mineral Deposits!!!


:f_biggrin:
 
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Feb 2011
20,452
15,694
The formerly great golden state
Trump has offered to lift sanctions, according to this article, but that hasn't happened yet. If and when it does, why on earth would anyone want to invest there?



This bothers me. More outsourcing, more jobs going overseas to take advantage of cheap labor.



Market for what? They aren't going to be able to buy our stuff. IMO, this is going to benefit China more than the US.

Investment guru Mark Mobius says North Korea presents a ‘tremendous opportunity’
The same could have been said about Europe about 1945. The bottom line is that the more NK gives its people liberty, the more they adopt capitalism ve. socialism, the more they enter the modern world, the better off we all are, especially the unfortunate people of NK.

But, let's not get ahead of ourselves. There is a long way to go before NK actually becomes a part of the modern world and not a baby sitting on the floor playing with a loaded gun.
 
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