N. Korea establishes agency handling investments from overseas Koreans

North Korea has established a government agency to facilitate investments in the communist nation by overseas Koreans, with its services to get into full swing by January, an official was quoted Sunday as saying.

Pyongyang established the "economic cooperation office for overseas Koreans" in August to provide support and guidance for investments from Koreans living overseas, the agency's chief, Pak Kyong-jin, said in an interview with Minjoktongsin, a pro-North Korean website operated by a U.S.-based Korean.

The agency's establishment is part of efforts to rebuild the economy, Pak said.

"An increasing number of overseas Koreans have been visiting the North to discuss investment issues. We have established the agency to handle these issues exclusively," he was quoted as saying, adding that the agency will begin operation in earnest in January.

Pak said he would advise potential investors to focus on construction and light industries for the time being, rather than resources development projects that require massive amounts of capital.

The interview was seen as part of efforts to show the outside world that the North's economic policies will remain unchanged despite the execution earlier this month of Jang Song-thaek, the once-powerful uncle of young leader Kim Jong-un. The surprise

killing has raised concerns about instability in Pyongyang.

Pak denounced speculations about instability as being part of a smear campaign against Pyongyang. (Yonhap news)