Representatives from the two companies paid a visit to North Korea last week, invited by a domestic government-owned company that specializes in hosting foreign investments.
Although Pyongyang has introduced foreign food like pasta or hamburgers to its citizens, this would be the first international chain to open a branch.
The first chain is to be opened by this autumn, along with official supply of Coke.
North Korea is hastening the relaxing of its relationship with the western countries, allowing foreign news agencies like the Associated Press and Reuters to open branches in the capital.
As Coca-Cola and KFC are often referred to as symbols of global capitalism, not to mention American culture, the North’s intention brings about controversies concerning acceptance of the market system.