Starting a Business · North Korea
Starting a business in North Korea: foreigner's guide (2026)
North Korea shaded by its starting a business status
North Korea has a written domestic framework that nominally permits equity joint ventures, contractual joint ventures and wholly foreign-owned enterprises, mainly within designated special economic zones, with state approval. However, UN Security Council Resolution 2375 (2017) prohibits all new and existing joint ventures and cooperative entities with DPRK persons, and major jurisdictions ban new investment outright, so lawful foreign company formation is effectively closed for nearly all foreigners. FDI has collapsed to near-zero and most special economic zones have stalled.
Key points
UNSC Resolution 2375 (11 Sept 2017) requires member states to prohibit all joint ventures and cooperative entities with DPRK entities or individuals — new or existing — subject only to very narrow exemptions for certain non-commercial infrastructure projects. This makes the standard DPRK investment vehicles unlawful for nationals of UN member states.
The DPRK Foreign Investment Law and companion laws allow equity joint ventures, contractual joint ventures and wholly foreign-owned subsidiaries via a contract/application submitted to the state external economic body, which must approve or reject within 50 days (joint ventures) or 90 days (wholly foreign-owned enterprises).
US Executive Order 13722 prohibits new investment in North Korea and the export of goods, services and technology to it; virtually all trade, financial transactions and investment by US persons are barred absent an OFAC license. Comparable bans apply in the EU, Canada and other jurisdictions.
Foreign-owned and joint enterprises were historically concentrated in special economic zones such as Rason and Kaesong rather than the wider economy. Outside zones built with South Korea, these SEZs largely failed to attract international capital and development has stalled.
Foreign direct investment is negligible; the country attracted only about US$120 million in FDI in 2013 and inflows have since largely halted under UN sanctions, the closure of the inter-Korean Kaesong zone, and pandemic border closures.
There is no transparent, generally available registration route: formation requires direct state approval and a North Korean counterpart, and any resulting joint venture or cooperative entity is prohibited under UN sanctions, meaning lawful company formation is practically unavailable to ordinary foreign investors.
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Last verified 5/24/2026 · Orientation, not legal advice - verify against the primary sources linked above. Explore the full world map →