N.Korea to Establish State Development Bank

North Korea will establish a state development bank which will deal with international financial organizations and commercial banks and invest according to state policies, the official [North] Korean Central News Agency reported Wednesday. The decision was made by the powerful National Defense Commission, which is headed by leader Kim Jong-il.

It will also set up an international cooperation agency called the [North] Korea Taepung International Investment Group to take charge of attracting investment for the bank, KCNA said. 

KCNA claimed the bank has "modern financial rules." Kim Yang-gon, the director of the Workers' Party's United Front Department, has been named chairman of the Joson Daepung Investment Group, and Pak Chol-su vice chairman.

A North Korean source said Pak is a Korean-Chinese businessman who maintains relations with South Korean officials and businessmen. He apparently once arranged a secret inter-Korean meeting.

Pak is also believed to have been involved in a secret meeting held between Labor Minister Yim Tae-hee and Kim Yang-gon in Singapore last October.

Rumor has it that Jang Song-taek, Kim Jong-il's brother-in-law and the director of the Administrative Department of the Workers' Party, is also on the board of directors.