N. Korea names Rason as 'special city'

SEOUL, Jan. 4 (Yonhap) -- North Korea designated Rason, the country's first free trade zone, as a "special city" on Monday, the North's official news media reported.

North Korea designated Rason and nearby Sonbong, located on the country's
northernmost coast close to both China and Russia, as an economic free trade zone
in 1991, though foreign investment has never materialized.
According to the Korean Central News Agency (KCNA) monitored here, the Standing
Committee of the North's Supreme People's Assembly designated Rason as a special
city in a decree.
The Cabinet and related agencies will take steps to implement the decree, the
KCNA said.
However, the KCNA report did not elaborate on what the special city is or what
the steps are.
The decree follows North Korean leader Kim Jong-il's visit to the city last month
for the first time since it was named a free trade zone and the New Year's
editorial, jointly issued on Friday by the party, the army and the youth
military. The editorial declared North Korea will focus on raising its people's
living conditions by revamping its light and agricultural industries and
expanding external markets and trade.
In recent years, the North has tried to reinvigorate the trade zone, signing an
accord with Russia to restore railways that could help rejuvenate the port there.
Russia invested 140 million euro (US$202 million) in the Rason project in late
2008.
It is also believed that the North reached an agreement with China to develop
Rajin port, the largest port in Rason, into an international logistics hub. In
2007, the allies drew up plans to build new roads there to connect the area with
China's Hunchun.
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