Made in Kaesong: Shop selling North Korean goods rakes in thousands of dollars after opening in Seoul

A shop in South Korea's capital specialising in goods made in the North has run nearly US$140,000 through its tills in just three months of business, helping dispel the notion that products from the impoverished state are shoddy and undesirable.

The Kaesong Industrial Complex Shop opened in May showcasing North Korea and the skills of its workers, to present the country as a viable business partner to the prosperous South.

"North Korean employees are young and are fast learners, and we use materials from the South. So the quality is just as good as products of South Korean brands, at relatively lower prices," said shop vice-president Lee Joung-duk.

Lee is president of Young Inner Foam Corp, one of 125 firms from the South operating in Kaesong. The industrial zone was set up by the two Koreas in 2003 a few kilometres north of their armed border, and now employs about 53,000 North Koreans.

Lee partnered the owners of 11 other Kaesong companies, investing about US$17,000 each, to set up the store to bring Kaesong goods directly to consumers.