Foreign Trade Bank of the Democratic People's Republic of Korea
Corporate brand
UnclaimedNorth Korea's principal state-owned foreign-exchange and foreign-trade bank.
Last updated October 14, 2026
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Overview
The Foreign Trade Bank of the Democratic People's Republic of Korea, also known as Joson Trade Bank, is North Korea's principal institution for foreign-exchange operations and the financial settlement of international trade. It is owned and operated by the North Korean government and serves as a key intermediary between North Korean state trading organizations and overseas banks, companies, and financial institutions. Its functions include processing trade payments, handling foreign-currency transactions, supporting guarantees for trade-related obligations, and determining or announcing exchange rates used in official transactions. Established in November 1959, the bank developed alongside North Korea's centrally managed foreign-trade system. Its role has historically extended beyond ordinary commercial banking: it has supported state trading entities, provided payment guarantees, and acted as one of the country's principal channels for dealings in currencies other than the North Korean won. During the period when North Korea used foreign-currency exchange certificates, the bank was involved in issuing and administering those instruments. The convertible-note system was introduced in 1979 and the bank began issuing the certificates in 1988; the system was formally abolished after July 1, 2002. The bank has maintained or represented overseas connections, including a Moscow branch headed at one point by Han Jang-su. Its officials have also participated in international financial and diplomatic contacts. O Kwang-chol, identified in public reporting as a former president of the bank, reportedly received exposure to foreign financial institutions and investment companies and took part in the United Nations Conference on Trade and Development in Geneva in June 2005 and a financial working-group meeting with the United States in December 2006. Such contacts reflected efforts to explain North Korea's financial system and preserve channels for external payments, although they did not remove the bank from the broader constraints imposed by sanctions. The Foreign Trade Bank's international operating environment changed sharply in 2013. On March 11 of that year, the United States designated the bank under Executive Order 13382, a measure directed at proliferators of weapons of mass destruction and their supporters. The designation blocked property under U.S. jurisdiction and prohibited U.S. persons from conducting transactions with the bank. Following the adoption of United Nations Security Council Resolution 2094 in March 2013, several Chinese banks reportedly stopped dealing with it. Bank of China publicly announced on May 7, 2013 that it would end its dealings with the Foreign Trade Bank, a move widely viewed as a significant signal of Chinese pressure on Pyongyang. The bank subsequently remained a focus of international enforcement efforts. In August 2017, United Nations Security Council Resolution 2371 expanded financial restrictions affecting the bank. The United States Treasury has also identified companies alleged to have acted as fronts or facilitators for Foreign Trade Bank transactions, including Dandong Zhongsheng Industry & Trade Co. and Korea Ungum Corporation, and designated Russia-based Agrosoyuz Commercial Bank for allegedly facilitating transactions connected with the bank. These measures have limited its access to conventional correspondent banking and increased the importance of indirect, regional, and nontraditional financial channels. Despite those restrictions, the Foreign Trade Bank remains an important part of North Korea's state financial architecture. Its public profile is shaped less by consumer banking than by sovereign foreign-exchange management, trade settlement, sanctions exposure, and its connection to the country's external economic institutions. Publicly available information about its current management, balance sheet, branch network, products, and domestic customer base is limited. It should therefore be understood primarily as a state foreign-trade and foreign-exchange institution rather than as a broadly marketed retail bank.
History
The Foreign Trade Bank was established in November 1959 as a specialized institution for North Korea's external economic activity. It became the principal state bank responsible for foreign-trade settlement and foreign-exchange operations, supporting government trading organizations and other entities engaged in international commerce. Its duties included processing payments, providing guarantees for trade obligations, and determining or announcing exchange rates used in official transactions. The bank also participated in North Korea's foreign-currency exchange-certificate system. These certificates functioned as convertible instruments intended for foreign-currency transactions. The system began in 1979, and the Foreign Trade Bank started issuing the certificates in 1988. The certificate regime was officially abolished after July 1, 2002, as North Korea changed its approach to currency and payments. Public references identify overseas activity associated with the institution, including a Moscow branch headed by Han Jang-su. O Kwang-chol, described as a former president, reportedly received training or professional exposure at foreign financial institutions, investment companies, and private companies. He also participated in the UN Conference on Trade and Development in Geneva in June 2005 and in a U.S.-North Korean financial working-group meeting on December 19, 2006. These engagements illustrate the bank's role in external financial diplomacy as well as routine trade settlement. International sanctions significantly constrained the bank after 2013. On March 11, 2013, the United States designated it under Executive Order 13382, which targets entities associated with weapons-of-mass-destruction proliferation. The designation freezes property subject to U.S. jurisdiction and generally bars U.S. persons from dealing with the institution. After UN Security Council Resolution 2094 was adopted in March 2013, a number of Chinese banks reportedly ceased handling transactions involving the Foreign Trade Bank. Bank of China then announced on May 7, 2013 that it would end its dealings with the bank. The sanctions environment expanded further in 2017. UN Security Council Resolution 2371, adopted on August 5, 2017, broadened financial restrictions affecting North Korean entities and the bank's ability to access international financial channels. U.S. Treasury actions also targeted entities alleged to have acted as fronts or facilitators for Foreign Trade Bank transactions, including Dandong Zhongsheng Industry & Trade Co., Korea Ungum Corporation, and Russia-based Agrosoyuz Commercial Bank. The institution remains a state-owned component of North Korea's external economic system, but detailed information about its current leadership, capitalization, financial performance, customer base, and operational footprint is not generally available. Its known historical and continuing functions center on foreign exchange, trade payments, official guarantees, and the management of North Korea's constrained international banking relationships.
- 2017
UN sanctions expanded
[3]UN Security Council Resolution 2371 expanded financial sanctions affecting North Korean entities, including restrictions relevant to the bank.
- 2013
United States designation
[2]The United States designated the bank under Executive Order 13382, imposing asset-blocking and transaction restrictions.
- 2013
Bank of China cuts ties
[1]Bank of China announced that it would stop dealings with the Foreign Trade Bank.
- 2002
Convertible-note system abolished
[1]North Korea officially abolished the foreign-currency convertible-note system after July 1, 2002.
- 1988
Bank begins issuing exchange certificates
[1]The Foreign Trade Bank began issuing North Korean foreign-currency exchange certificates.
- 1979
Foreign-currency exchange-certificate system introduced
[1]North Korea introduced foreign-currency exchange certificates, later administered and issued by the Foreign Trade Bank.
- 1959
Bank established
[1]The Foreign Trade Bank was established in November 1959 to support North Korea's foreign-trade and foreign-exchange activities.
Products and positioning
A state-controlled specialist bank serving North Korea's foreign trade, foreign-exchange, and external payment infrastructure rather than a consumer-oriented commercial bank.
Trade finance · 1959
Foreign-trade settlement
The bank processes and supports payments connected with North Korea's international trade organizations. This function historically made it a central financial intermediary for imports, exports, and other official external economic transactions.
Foreign exchange · 1959
Foreign-exchange operations
Foreign-exchange activity is one of the bank's core institutional responsibilities. The bank has been associated with official exchange-rate determination or announcement and with transactions involving currencies used in international trade.
Trade finance · 1959
Trade-payment guarantees
The Foreign Trade Bank provides or supports guarantees for payment obligations involving North Korean trade organizations. Public descriptions do not provide a detailed current product catalogue, but guarantees are part of its documented foreign-trade mandate.
Currency instrument · 1988
Foreign-currency exchange certificates
The bank issued North Korean foreign-currency exchange certificates beginning in 1988. These convertible instruments belonged to a state currency system introduced in 1979 and officially discontinued after July 1, 2002.
Brand decisions
2002
End of the foreign-currency exchange-certificate systemStrategyBackground
North Korea changed its foreign-currency and payments arrangements after operating a certificate system introduced in 1979 and administered by the Foreign Trade Bank.
Action taken
The convertible-note or foreign-currency exchange-certificate system was officially abolished after July 1, 2002.
Aftermath
The bank continued its broader foreign-exchange and foreign-trade settlement functions, but the certificate instrument was no longer part of the official system.
Sources3 sources
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