Inter Korean deal on shiprepair yard

A South Korean company has obtained the exclusive right to use a ship repair yard in North Korea. The right to use Ryongnam Ship Repair Factory in the western port city of Nampo will enable Acheon Global Corp. to gain domestic and overseas investment in its ship repair and steel-structure manufacturing businesses in North Korea.

“Our company recently signed an agreement with the North and decided to push for businesses with the right to invest in and use Ryongnam Ship Repair Factory,” an official said. Built in 2005 near the West Sea floodgates, the factory has two docks for ship repairs and a wide yard around it.

Acheon has yet to receive the required approval from the South Korean government for the inter-Korean cooperation program, but plans to do so if a trial run of a welding machine assembly business at the factory is successful. Acheon’s business partner Yonhap Electric said it will make 20 carbon dioxide welding machines at the factory next month to see if the joint business would be lucrative.

Acheon also aims to persuade Pyongyang to designate part of Nampo as a special economic zone if the business thrives.