North Korea is actively preparing to open its border cities with China amid efforts to seek economic outlets following its adoption of measures to improve economic management in July, 2002.

A source on North Korean affairs in Beijing said Monday that the North is currently preparing to open four to five cities around Hyesan City in Ryanggang Province next year in a bid to expand trade with China.

The source also said the North plans to actively lure foreign capital from South Korea, the United States and Japan to eventually nurture the border towns into international cities.

The North has reportedly approved housing transactions, private ownership of farmland and private commerce.