North Korea Bank Deal

A SYDNEY grandfather was so successful in setting up North Korea's first financial institution his organisation has been asked to establish a bank inside one of the most closed regimes in the world.

Financier David Bussau, 67, was named Senior Australian of the Year three weeks ago in recognition of his work founding Opportunity International, which provides loans and basic business training for the poor throughout the world.

A venture between his family trust and the North Koreans set up a finance institution four years ago to provide capital and services for state-run enterprises. A foundation to provide resources for orphans and handicapped people was also established.

"We now have the opportunity in front of us to set up a commercial bank. We have been invited to set up an investment and savings banks. They're on the table," Mr Bussau said.

North Korea was preparing for the same market transition as the Soviet Union and China, he said.

Mr Bussau, who was abandoned at a New Zealand orphanage when he was six with his younger brother, built up a multi-million dollar fortune based on a construction empire.

He took a team of volunteers to Darwin in 1975 to help rebuild the city after Cyclone Tracy. This became a turning point in his life. A devout Christian, he sold his construction businesses in 1979 and founded Opportunity International, providing loans and basic business training for the poor.

His work in Third World countries brought him notice in North Korea.

Mr Bussau, who has visited North Korea every three months over the past five years, acknowledged the difficulties inside the country.

"It's a complex area we are moving into," he said.

"There are two ways you can change things. You can stand outside and throw rocks and not understand the internal complexity of a country; or, you can work with people to make programs work."