Jon Il Chun, a representative of the National Defense Commission, was elected director general of the board and Pak Chol Su, a Korean resident in China, became deputy director general, KCNA said.

"Having advanced banking rules and system for transactions with international monetary organizations and commercial banks, the State Development Bank will operate as a comprehensive financial institution making investment in major projects, pursuant to the state policy, and performing the function as a commercial bank," it said.

The board is made up of representatives of the defense commission, the Korea Asia-Pacific Peace Committee, the Finance Ministry, the Korea Taepung International Investment Group and two independent directors, according to KCNA.

Pak was elected president of the Korea Taepung International Investment Group on Jan. 20.