The International Herald Tribune says North Korea is emerging as an attractive target for foreign investments after it adopted a basic framework to transform itself into a market-driven economy in 2002 in line with other economic reforms.

The paper said foreign companies based in the North has acknowledged difficulties in operating their businesses there due to the communist state's unique political system but also described the reclusive country as having infinite possibilities.

Small-and-medium-sized companies from China and Europe have been investing in North Korea. Recently large international conglomerates, including Hong Kong’s Emperor Group and DHL, have also begun investing in the North.

In July 2002, North Korea implemented a number of economic reforms, including those related to workers' wages and setting up of agricultural markets and reduction of state subsidies.

Last year, the North significantly reduced the minimum wage of workers employed in foreign companies from 120 dollars to 38 dollars in a bid to attract foreign investments.