The Chinese rental business Sharing Economy International Inc (NASDAQ:SEII) today announced that it is set to introduce an online website platform in North Korea after entering into a license agreement with Ecrent Capital Holdings.
Sharing Economy, which is based in China’s Jiangsu Province, will pay the Hong Kong-based Ecrent a maximum of US$1mln for its help in setting up shop in the communist country as part of a licensing agreement, which expires in December 2023.
Investors sent Sharing Economy’s shares up by close to 22% in pre-market trade.
In the wake of the recent summit between President Donald Trump and North Korea’s leader Kim Jong-un, Tin Chi Chan, chief executive of Sharing Economy International, is eager to introduce his company’s online rental business in North Korea.
“We strongly believe that the potential opening of the North Korean market provides a unique opportunity for us to develop both online and offline sharing economy business models in the region that would greatly benefit the North Korean people,” said Tin Chi Chan in a statement.
“Given the limited means of the population, the opportunity to share products and services instead of purchasing them outright can lower the costs incurred and enhance the quality of life of North Korean citizens,” he added.
Sharing Economy develops online platforms and rental business partnerships. Ecrent also specializes in an array of rental businesses, ranging from tools to transport and professional services.