Pyongyang announced two islets in Yalu River will be developed by Chinese enterprises in an attempt to strengthen international economic ties and increase foreign investment, reported Yonhap news of the Republic of Korea (ROK).

The agency quoted the sources as saying the two islets adjacent to China's northernmost port city Dandong have been leased for 50 years to Chinese firms for development. It said the planned investment scale is about $300 million and $500 million respectively.

It said the Democratic People's Republic of Korea (DPRK) has designated the two islets as free-trade areas, allowing foreigners come in and go out visa-free.