Sinuiju Cosmetics Factory, North Korea’s leading cosmetics producer, has launched a production line to manufacture handmade soap for export using Chinese-made equipment. The soap produced is already being exported to China.
“Sinuiju Cosmetics Factory, early this year, was equipped with a production line to make handmade soap shaped like Korean clothing to earn foreign currency,” a source in North Pyongan province told Daily NK on Monday. “Trial production began in mid-June after assembling the equipment that was imported from China between March and May, with small numbers of packaged products being exported to China from early this month.”
The handmade soap is a premium product for souvenirs, in contrast with the factory’s existing products, which emphasize their use of Korean ginseng. The handcrafted soap is produced on a separate production line from the one used for soap for the domestic market, according to the source.
Behind the factory’s creation of a separate production line for exports is North Korea’s strategy to diversify its operations to earn foreign currency amid international sanctions. In other words, the North wants to secure means to sustainably earn foreign currency even amid sanctions.
With North Korea’s major export items, such as seafood and underground resources like coal and minerals, subject to international sanctions, exports of daily consumer items have emerged as an alternative. The authorities are targeting overseas markets with goods that emphasize tradition and natural ingredients.
Joint venture expands distribution network
“I understand the authorities are considering creating a separate factory or a specialized team to earn foreign currency if the handmade soap exports yield certain results,” the source said. “Internally, people hope this trial project could become a breakthrough to earn foreign currency.”
The new production line for handmade soap was a joint venture with Chinese investors.
“The Chinese investors who provided the equipment receive the goods produced and distribute them in China on their own to earn profits,” the source said. “The Chinese investors plan to expand their distribution network to the Southeast Asian market.”
According to a source in China, the handmade soap is distributed alongside Sinuiju Cosmetic Factory’s existing ginseng soap and “Spring Scent” cosmetics in several Chinese cities, including Dandong, Liaoning province, and Yantai, Shandong province.
The ginseng soap sells for 6 Chinese yuan per bar, but the handmade soap, shaped like traditional Korean clothes, sells for twice that price, or 12 yuan, the source said.
The item is being heavily promoted as a “traditional artisan craft” in China because it is shaped like Korea’s traditional clothing, and the final production stage involves handicraft.
