The Central Bank of the Democratic People’s Republic of Korea (DPRK), North Korea’s Central Bank.
North Korea is in the process of creating a new financial services industry and is preparing to roll out new financial products that include new forms of savings accounts, business loans, and credit cards in an effort to stimulate economic development, newspaper Chosun Sinbo reports.
According to Chosun Sinbo, a newspaper of the DPRK-affiliated Korean community in Japan, economists in North Korean are working on the expansion of the nation’s restrictive financial services sector, by introducing several financial products, such as credit cards.
“We are making an effort to ensure an active circulation of money in the country and the accumulation of funds necessary for economic development,” says Kim Chon-gyun, the President of the Central Bank of the Democratic People’s Republic of Korea (DPRK), North Korea’s Central Bank.
“Our main mission is providing the capital to build the country’s economy through means of smoothly circulating domestic funds,” Kim said, adding that “as a part of the effort, we are developing new financial products and promoting credit card usage by the public.”
North Korea’s Central Bank is preparing the necessary financial instruments for the creation of business loans and new forms of saving accounts for companies, stores, and individuals, according to the report.
Kim explained that a National Coordination Committee, which is chaired by the deputy premier, along with officials from the Central Bank, the Finance and Foreign ministries, in addition to law enforcement, will be involved in the creation of the new financial system.
North Korea has long been criticized as a hub for money laundering. The Committee’s efforts are expected to include measures aimed at combating money laundering and terrorism financing, the report said.
The nation’s North Foreign Trade Bank and Kyoro Bank had issued debit cards in 2010, however usage was very limited use outside the nation’s capital of Pyongyang.
The U.S. recently warned North Korea that it would seek to further expand sanctions against the reclusive nation, including its further isolation from the global financial system following a recent spat between the two nations.
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