The decision to establish the "Musan Export Processing Zone" in Musan County, North Hamgyong Province, was made during a meeting of the Standing Committee of the Supreme People's Assembly (SPA), according to the Korean Central News Agency. Musan County is a border town near China where one of the North's biggest iron mines is located.

Observers said the zone might be used to process materials brought in from China and manufacture products that will be exported back to the country.