L&J Development & Consultancy

DPRK Restaurant, Art Gallery and Tourism Promotion Office

Preliminary Concept Proposal

This proposal has been prepared by the DPRK Business Review which you are encouraged to contact for more information about this project.

About the DPRK

The Democratic People’s Republic of Korea (‘North Korea’ or ‘DPRK’) has remained largely isolated from the rest of the world for more than half a century.

Whilst the primary culture of the DPRK remains quintessentially Korean, under the leadership of President Kim Il Sung and General Kim Jong Il the country has developed its own unique cultural and artistic characteristics that are of great interest to outsiders, especially as the DPRK remains one of the few countries to survive the downfall of the former Soviet bloc.

The DPRK remains strictly communist but is experimenting with economic reforms that may see it follow the same path of development as its close communist allies China and Vietnam. These economic reforms are creating an environment increasingly conducive to cooperative projects between DPRK and foreign companies.

Project Overview

Essentially the facility will be a celebration of DPRK food and culture, whilst at the same time promoting DPRK tourism and art. Profit will be derived from three main sources: sales of food and beverages, sales of authentic DPRK art and commissions on sales of travel packages to the DPRK.

The objective is to have all operations in the one location, so that each component draws the customer into a relationship with another component. For example, a person who initially plans to dine at the restaurant may also enquire about a holiday to the DPRK and purchase some art. Another person who visits the travel office may also stop and have a meal.

The multi-faceted operation also allows it to be promoted and marketed in various ways, for example in local travel publications and to the arts community.

Location

Ideally located in an area frequented by western, South Korean and Japanese tourists, in either a popular bar and restaurant district or in a four or five star hotel. The location must also be popular with local residents.

Korean Restaurant

· Modelled on other DPRK-owned and operated restaurants abroad, for example the Moran Restaurant in Beijing and the Taedonggang Restaurant in Ho Chi Minh City

· Traditional Korean food prepared by imported DPRK chefs

· Korean food is generally spicy and chili-based, appealing to South-east Asian tastes

· Imported DPRK waitresses wearing traditional Korean dress

· Waitresses performing traditional song and dance routines, e.g. ‘Arirang’, a traditional song popular in both north and south Korea

· Decorated with DPRK art and ceramics – for sale through the art gallery

DPRK Art Gallery and Souvenir Shop

· Traditional Korean art such as ceramics, oil paintings, Korean ink, embroidery and woodblock

DPRK Tourism Promotion Office and Travel Agency

· Making travel arrangements to the DPRK – flights, trains, hotels, guides, etc.

Investors

· 50% (approx.) – DPRK partner(s), and/or a DPRK individual or organization experienced in operating a DPRK restaurant abroad

· 50% (approx.) – overseas partner(s), including an experienced local restauranteur in the host city and possibly an individual or organization experienced in facilitating western tourism to the DPRK and/or an individual or organization experienced in facilitating art exports from the DPRK

Customers

North Korea Operates a Restaurant in Vietnam

It was confirmed that a North Korean restaurant opened in October of last year, 2003, in Ho Chi Minh city, Vietnam, has been in operation.

The “Pyongyang Daedonggang Restaurant” located in Ho Tung Mau, in the downtown area of Ho Chi Minh city has about 14 employees, not counting the president.

The restaurant is open seven days a week with no holidays from 10:00 a.m. in the morning till 2:00 p.m. in the afternoon and from 5:00 p.m. in the afternoon till 10:00 p.m. in the evening, with its main customers being Korean and Japanese residents in Ho Chi Minh city and Korean tourists. The eatery serves North Korean specialty dishes such as dumplings, iced noodles, mung-bean pancakes and crab broth, along with such meals as roast meat, seasoned squids and roast eels to suit the Korean and Japanese tourists’ tastes there.

The restaurant, which is 100% invested in by the Korea International Travel Co. of North Korea, got an approval to be established under the name of the “Pyongyang Daedonggang Restaurant” in May of 2003. The company’s investment is about US$100,000.

However, the foreign investment law in Vietnam does not allow foreigners to invest in restaurants, a kind of general retail business. So, it is guessed that the NK’s restaurant got an approval as a food processing business.

* This Preliminary Concept Proposal has been prepared by the DPRK Business Review which you are encouraged to contact for more information about this project.

If you need more information about the business opportunities offered by North Korea,