August 27, 2007

South Korean chicken company plans poultry farms in North Korea

Maniker Co., a major chicken processing company in South Korea, said Friday (Aug 24) it would finalize the company's project to set up chicken farms in North Korea next month.

Maniker, has been exploring ways to build chicken farms in North Korea since 2002.

One reason building chicken farms there would be an attractive option is the cheap labour.

The location of the chicken farms is expected to be between Sariwon, south of the North Korean capital of Pyongyang and Samilpo near Mt. Geumgang on the east coast, the company said in a statement.

North Korea has responded positively to the project, Maniker said.

Maniker's project would be the first direct investment by a South Korean company outside an inter-Korean industrial complex in the North Korean border city of Kaesong.

Relations between North and South Korea, which are technically at war have thawed since economic cooperation began a few years ago. This year, North Korea has promised to reveal all its nuclear programmes and shut down its nuclear reactor, relieving fears that it is processing material for nuclear weapons. Leaders from the two countries are also scheduled to meet for the second time since the countries' founding.