Hana Electronics JVC was a 50/50 joint venture between Phoenix Commercial Ventures Ltd and the trading department of The Ministry of Culture.

Phoenix has no further connection with Hana or any interests (direct or indirect) in its operations.

Sinji JVC was a 50/50 joint venture between Phoenix Commercial Ventures Ltd and the Taegyong Economic Group.

Phoenix’s share in the company was sold to a third party in November 2010.

Sinji (pronounced “shinjee”) was a lieutenant of Tangun, the first king of Korea in around 3,000 BC, and his mission was to relay communications between the king and his people. In the absence of a written script, he invented one. Sinji dates from ancient history, all Koreans will recognise the name. Sinji symbolises the human intellectual, and he can be considered to be the original Korean IT developer.

Sinji’s main areas of operations at the time of disposal were:
• Retail (consumer electronics, household necessities)
• Software (eg the innovative web based e-learning platform, learnwithelsi)
• Artificial flower manufacturing for export
• SKD assembly/retail: Renewable energy products (eg small capacity wind turbine generators)

Phoenix Commercial Ventures Ltd will issue further updates as to the intended future operations and direction of the newly acquired Sinji brand.

Pyongyang/London, January 8th 2013

Phoenix Commercial Ventures Ltd is proud to announce that Ken Frost MA FCA FIPFM, a director of Phoenix and member of the Institute of Chartered Accountants in England & Wales (ICAEW), has been ranked 25th within the Financial Power List 2013: Big Hitters.

The Financial Power List 2013 has been compiled by the British magazine “Accountancy Age”. The list identifies the “Big Hitters”, the top fifty people who the magazine thinks will be the biggest players in accounting and finance during 2013.

Ken ranks with such names as:

– George Osborne (Chancellor of the Exchequer)
– Michel Barnier (commissioner responsible for internal market and services, European Commission)
– Mike Carney (Governor of The Bank of England)
– Paul Beswick (chief accountant, US Securities and Exchange Commission)

Ken is based in the UK and is a chartered accountant with over 25 years’ international experience of FMCG industries, consumer electronics, rough diamond distribution and the internet.

He has worked for; KPMG, Philips Electronics, De Beers and in addition to being on the board of Phoenix and Hana Electronics JVC he runs his own internet company.

The Board of Phoenix Commercial Ventures Ltd would like to congratulate Ken on this notable achievement.

Every year PQ Magazine (a UK based accountancy magazine) holds an annual awards ceremony, rewarding the best and the greatest in the accountancy world.

Pyongyang/London, July 8th 2011

Phoenix Commercial Ventures Ltd (www.pcvltd.com) is proud to announce that Hana Electronics JVC (a 50/50 joint venture based in the DPRK) completed and moved into its new headquarters based near the T’ongil Market in Pyongyang in Q1 2011.

Having moved in and set up its production facilities, Hana has now opened a restaurant (“The Restaurant at Hana”) and related leisure facilities (swimming pool, sauna, hairdresser, bar, gym etc) in its headquarters.

 
The restaurant (which comprises a main dining room and several private ones) and leisure facilities are open to locals and foreigners alike. The menu comprises mainly Korean dishes, together with a few Western ones. Food for the restaurant is sourced from local markets.

A video and photos of the restaurant can be viewed on the Phoenix website.

About Phoenix Commercial Ventures Ltd

Phoenix Commercial Ventures Ltd offers investors business and investment opportunities in the Democratic People’s Republic of Korea (DPRK), enabling them to take advantage of the economic reforms that are taking place there.

Phoenix Commercial Ventures Ltd maintains an office in Pyongyang, almost the only European company to do so, and operates with the following specific aims:

• Identify commercially viable investment projects in the DPRK, on a case by case basis

• Identify reliable local partners for all forms of business in the DPRK, either trade or investment

• Seek overseas investment sources for such projects

• Minimise the risk in such projects, by taking responsibility for supervision of the local set-up procedures and management of the projects

About Hana

Hana was established in May 2003. In 2004 it began manufacturing and selling DVD and VCD players, as well as pressing and selling CD’s.

When the company first began operations it employed barely a handful of people. Now it employs over 200 people, and has thus become a major employer with significant social responsibilities which it takes very seriously.

Hana have established a nationwide distribution network throughout the major cities in the DPRK. Whilst they manufactured and marketed CD’s, they had an exclusive long term contract with the Mansudae Arts Centre, which belongs to the Ministry of Culture, one of the partners in the JV, for 300 works including; movies, karaoke and other music.

They now produce and sell a range of DVD players, and will move into other consumer electronics products.

Hana is now ranked as one of the top three best performing joint ventures in DPRK, as assessed by the Ministry of Finance.

Hana is proud to have introduced a number of firsts, which show the evolution of the DPRK to a market economy. These include:

• Advertising – the Hana logo, together with the company’s telephone number, appear on every product and packing case

• Offering a guarantee – Hana has also introduced a six-month, no questions asked, guarantee on all products

• Distribution System – Hana have gradually established, from a zero base, a distribution system covering the whole country. They have set up sales offices – for example, in Chongjin, they now have one main office and 13 sub-branches; in Hamhung, they have one main office and 3 sub-offices, and also have offices in Nampo, Sariwon and Sinuiju. They plan to open more outlets, first in the other provincial cities, then in the smaller county seats

• Hana intends to diversify and expand their range of products.

• Hana moved into its newly constructed building, next to the T’ongil Market, in Q1 2011.

• Hana has also opened a restaurant (“The Restaurant at Hana”) and leisure facilities (including a swimming pool) in its new building. The restaurant and leisure facilities are open to locals and foreigners alike.

CONTACT INFORMATION:

Phoenix Commercial Ventures Ltd office address in Pyongyang is:

Phoenix Commercial Ventures Limited
No. 901
International House of Culture
Ryonhwa-dong
Central District
Pyongyang
Democratic People’s Republic of Korea

Corporate Website www.pcvltd.com

North Korea Government Agencies’ and Front Companies’ Involvement in Illicit Financial Activities

Daedong Credit Bank would like to take this opportunity to strongly emphasise the following:

• Its role is to provide banking facilities for non Korean nationals (such as businesses and aid and relief agencies) working with the DPRK.

• All transactions are subject to rigorous checks and procedures.

• Daedong Credit Bank has in place rigorous anti money laundering procedures. These procedures have been disseminated to every member of the bank’s staff via the procedures manual; the procedures are followed, and audited as being followed, for all transactions. Copies of the procedures can be obtained by contacting the bank.

• Daedong Credit Bank does not support in any way the financing of illegal activities.

Daedong Credit Bank has a special position as the oldest foreign-invested JV bank in the DPRK, and provides banking services to all the major foreign-invested JVs; it therefore stands on its solid reputation, and part of this is being the leader in the adoption of internationally accepted best practices in every field.

In this regard, and as one of the most creditworthy banks in the DPRK, it is especially important that Daedong Credit Bank is completely open with correspondents and regulators.

Daedong Credit Bank is concerned that the dissemination of news stories based on innuendo and rumour, appear to be deliberately designed to damage the reputation of the Daedong Credit Bank and its clients. Daedong Credit Bank, whilst not being able to comment of financial transactions not under its control, would like to emphasise the following:

• Daedong Credit bank has, on occasions, detected and impounded the so-called “superdollar” fake notes. The fact that DCB were able to detect fake notes undermines the story perpetrated by the media, and some other organisations, that the notes are undetectable.

• DCB is a not a state-owned institution.

• DCB is incorporated in the DPRK as a majority foreign-owned and managed institution, under the DPRK’s laws on independent foreign-invested joint ventures

• DCB provides banking services for non-state-owned customers carrying out legitimate business.

• DCB has strict anti money laundering procedures in place, details of which can be viewed on the Daedong Credit Bank website (www.daedongcreditbank.com)

• Daedong Credit Bank is happy to provide detailed background information as to the rationale for legitimate financial transactions, in respect of the DPRK, being heavily reliant on the use of cash.

The Daedong Credit Bank looks forward to playing a significant part in facilitating normal commercial relationships between the DPRK and the international business community.

About Daedong Credit Bank

Daedong Credit Bank is a joint venture retail bank based in Pyongyang. It was established in 1995 as “Peregrine Daesong Development Bank”. The Bank underwent a change of name and foreign ownership in 2000.

Daedong Credit Bank is the first, by thirteen years, foreign majority held bank in the DPRK. DCB considers itself a flagship successful joint venture in the DPRK, and a key part of the infrastructure needed to assist the foreign-invested ventures, which drive the country’s economic reforms.

The bank’s principal function is to offer normal “high street” banking facilities in hard currency to; foreign companies, joint ventures, international relief agencies and individuals doing legitimate business in the DPRK.

Daedong Credit Bank was the first bank in the DPRK to introduce, and vigorously implement, a comprehensive set of anti-money laundering procedures. DCB’s anti-money laundering procedure manual was introduced three years ago, and subsequently updated based on anti-money laundering guidelines provided by the Asian Development Bank.  The manual has been sent to, and accepted by, DCB’s international correspondent banks.

Daedong Credit Bank also maintains strict procedures for the detection and rejection of counterfeit bank notes; it uses regularly updated note checking machines, and has personnel with over 13 years’ of experience of handling notes. DCB have encountered and impounded the so-called ‘superdollar’ notes, proving that these notes (despite media misconceptions) are not undetectable.

The wealth of experience garnered over Daedong Credit Bank’s 10 years of successful operation is unrivalled.

CONTACT INFORMATION:

Daedong Credit Bank
401, Potonggang Hotel
Ansan-dong
Pyongchon District
Pyongyang
Democratic People’s Republic of Korea

The displays included machine tools, electronics, vehicles, medicines, petrochemical products, consumer goods and foodstuffs.

Representatives from Phoenix Commercial Ventures attended the fair and manned a stand representing member companies of the European Business Association in Pyongyang, together with members of the management team from Sinji JVC and Hana Electronics JVC (joint venture companies formed with Phoenix) and Daedong Credit Bank – Phoenix’s banking partner in the DPRK – (since 2000 Daedong Credit Bank has been 70% owned and managed by a company run by professional fund managers. The remaining 30% is held by Korea Daesong Bank).

Nigel Cowie (who is CEO of Phoenix, General Manager and CEO of Daedong Credit Bank and Vice President of the European Business Association) said:

“The trade fair provides an ideal venue and opportunity for companies to showcase their products and services, as well as providing an excellent networking opportunity. Phoenix Commercial Ventures and Daedong Credit Bank are proud to have participated in this regular event, which provides a springboard for economic development and growth.

Although the fair provides the opportunity for participants to establish new contacts for trade relationships, we also wanted to emphasise investment opportunities. Something that is often overlooked is that it is perfectly possible to create and run successful joint ventures in the DPRK. We have shown this with Daedong Credit Bank, which has been operating successfully for 13 years, and with Hana Electronics, which has been doing the same for five years, and are in the process of repeating the process with Sinji JVC, our youngest joint venture.”

Nigel Cowie (CEO Phoenix) attending the trade fair lunch at the German Embassy Pyongyang hosted by Dr Thomas Schaefer, German Ambassador (left of centre of picture), also seated Kim Il Ryong, Vice Chairman, Korea Committee for the Promotion of International Trade (KCPIT), O Il Hun, Vice President, KCPIT International Exhibition Corporation, Ryu Jong On, President, KCPIT Jonlam Trading Corporation, Professor Eckhard Rohkamm, President, German Asia-Pacific Business Association, Jon Yong Guk, Director, Korea International Exhibition Corporation
 

For additional information, contact Phoenix Commercial Ventures Ltd.

About Phoenix Commercial Ventures Ltd

Phoenix Commercial Ventures Ltd offers investors business and investment opportunities in the Democratic People’s Republic of Korea (DPRK), enabling them to take advantage of the economic reforms that are taking place there.

Phoenix Commercial Ventures Ltd maintains an office in Pyongyang, almost the only European company to do so, and operates with the following specific aims:

● Identify commercially viable investment projects in the DPRK, on a case by case basis

● Identify reliable local partners for all forms of business in the DPRK, either trade or investment

● Seek overseas investment sources for such projects

● Minimise the risk in such projects, by taking responsibility for supervision of the local set-up procedures and management of the projects

CONTACT INFORMATION:

Phoenix Commercial Ventures Ltd office address in Pyongyang is:

Phoenix Commercial Ventures Limited
No. 901
International House of Culture
Ryonhwa-dong
Central District
Pyongyang
Democratic People’s Republic of Korea

Money laundering is an issue that is being taken more and more seriously by national governments, enforcement authorities, financial regulators, indeed any organisation responsible for tracking down illegal activities, these days very often related to terrorism and / or organised crime.

According to the Asian Development Bank’s Manual on Countering Money Laundering and the Financing of Terrorism (March 2003):

“The integrity of the banking and financial services marketplace depends heavily on the perception that it functions within a framework of high legal, professional, and ethical standards. A reputation for integrity is one of the most valuable assets of a financial institution.

If funds from criminal activity can be easily processed through a particular institution– either because its employees or directors have been bribed or because the institution ignores the criminal nature of such funds–the institution could be drawn into active complicity with criminals and become part of the criminal network itself. Evidence of such complicity will have a damaging effect on the attitudes of other financial intermediaries, and of regulatory authorities, as well as ordinary customers.”

Daedong Credit Bank does not support in any way the financing of illegal activities, Daedong Credit Bank’s success is built upon its own reputation.

Daedong Credit Bank has a special position as the oldest foreign-invested JV bank in the DPRK, and provides banking services to all the major foreign-invested JVs; it therefore stands on its solid reputation, and part of this is being the leader in the adoption of internationally accepted best practices in every field.

In this regard it is especially important that Daedong Credit Bank is completely open with correspondents and regulators.

To this end, Daedong Credit Bank is proud to be the first bank operating the Democratic People’s Republic of Korea (DPRK) to announce that they have a detailed set of written procedures against money laundering.

These procedures have been disseminated to every member of the bank’s staff via the procedures manual; the procedures are followed, and audited as being followed, on all transactions.

About Daedong Credit Bank

Daedong Credit Bank is a joint venture retail bank based in Pyongyang. It was established in 1995 as “Peregrine Daesong Development Bank”.

The Bank underwent a change of name and foreign ownership in 2000. It is proudly preparing to celebrate its tenth anniversary.

Daedong Credit Bank is the first, by ten years, foreign majority held bank in the DPRK.

The bank’s principal function is to offer normal “high street” banking facilities in hard currency to: foreign companies, joint ventures, international relief agencies and individuals doing business in the DPRK.

The bank has a significantly strong position; in relation to the future economic development of the DPRK, and it is the oldest established foreign invested commercial bank in the DPRK. It is the intention of the bank to capitalise on these advantages.

The wealth of experience garnered over Daedong Credit Bank’s 10 years of successful operation is unrivalled.

CONTACT INFORMATION:

Daedong Credit Bank
401, Potonggang Hotel
Ansan-dong
Pyongchon District
Pyongyang
DPRK

Full details about the company and its board can be found on the corporate website, located at www.pcvltd.com

Phoenix Commercial Ventures Ltd offers investors business and investment opportunities in the Democratic People’s Republic of Korea (DPRK), enabling them to take advantage of the economic reforms that are taking place there.

Phoenix Commercial Ventures Ltd is owned and run by four experienced professionals from; the UK, France and the DPRK. They are based in London, Paris and the DPRK.

The Board has between them many years of international business experience, and an invaluable network of well placed contacts.

Phoenix Commercial Ventures Ltd offers a unique service, by being able to offer direct access to the DPRK.

Phoenix Commercial Ventures Ltd specialises in project finance in the Democratic People’s Republic of Korea (DPRK). As is well known, the business environment is difficult, and the company targets very specific investment projects; these are small enough to manage and have the capacity to generate foreign currency, either through export or import substitution.

Phoenix Commercial Ventures Ltd maintains an office in Pyongyang, almost the only European company to do so.

One of the directors of Phoenix Commercial Ventures is also General Manager of the Daedong Credit Bank, the first western-invested foreign bank in the DPRK (originally established in 1995). Phoenix Commercial Ventures is unique in having this connection with a reliable, locally-based financial institution.

For additional information, contact Phoenix Commercial Ventures Ltd.

About Phoenix Commercial Ventures Ltd

Phoenix Commercial Ventures Ltd offers investors business and investment opportunities in the Democratic People’s Republic of Korea (DPRK), enabling them to take advantage of the economic reforms that are taking place there.

CONTACT INFORMATION:

Phoenix Commercial Ventures Ltd office address in Pyongyang is:

Phoenix Commercial Ventures Limited
No. 901, International House of Culture
Ryonhwa-dong
Central District
Pyongyang
Democratic Peoples Republic of Korea