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Economy of North Korea

This article is about the economy of Democratic People's Republic of Korea. For the Economy of Republic of Korea, see Economy of South Korea.

Economy of North Korea
CurrencyNorth Korean won (KPW, ₩)
Calendar year
Country group
Statistics
PopulationIncrease 26,418,204 (2023)[3]
GDP
GDP rank
GDP growth
3.1% (2023)
GDP per capita
GDP per capita rank
GDP by sector
N/A
17 out of 100 points (2023, 172nd rank)
Labour force
Labour force by occupation
Unemployment
Main industries
Military products, machine building, chemicals, mining (coal, iron ore, limestone, magnesite, graphite, copper, zinc, lead, and precious metals), agriculture, metallurgy, textiles, food processing[2]
External
Export goods
watch components, beauty products, iron alloys, instructional models, tungsten (2019)[2]
Main export partners
Imports$2.4 billion (2023)[4]
Import goods
clothing and apparel, soybean oil, rice, wheat products, clocks/watches (2019)[2]
Main import partners
 Russia N/A [10]
$5 billion (2013)[2]
Public finances
-0.4% (of GDP) (2007 est.)[2]
Revenues3.2 billion (2007)[2]
Expenses3.3 billion (2007 est.)[2]
All values, unless otherwise stated, are in US dollars.


The economy of North Korea is a centrally planned economy, following Juche, where the role of market allocation schemes is limited, although increased to an extent.[11][12] As of 2024, North Korea continues its basic adherence to a centralized planned economy. With a total gross domestic product of $28.500 billion as of 2016, there has been some economic liberalization, particularly after Kim Jong Un assumed the leadership in 2012, but reports conflict over particular legislation and enactment.[13][14][15][16][17][18] Since the 1990s, informal market activity has increased, which the government has tolerated.[19] These markets are referred to as 'Jangmadang', and were formed as a result of the economic collapse during the 1990s, which made the regime unable to distribute food to its people.[20]

After the start of the COVID-19 pandemic, the government has tightened border control[21] and began major crackdowns on private economic activities[22][23] with a shift to a state-run monopoly on food sales,[24][25][26] followed by greater centralization of foreign trade,[27][28][29][30] and overall control over the economy.[31][32]

The collapse of the Eastern Bloc from 1989 to 1992, particularly North Korea's principal source of support, the Soviet Union, forced the North Korean economy to realign its foreign economic relations, including increased economic exchanges with South Korea. China is North Korea's largest trading partner. North Korea's ideology of Juche has resulted in the country pursuing autarky in an environment of international sanctions.[33] While the current North Korean economy is still dominated by state-owned industry and collective farms, foreign investment and corporate autonomy have increased.

North Korea had a similar GDP per capita to its neighbor South Korea from the aftermath of the Korean War until the mid-1970s,[34] but had a GDP per capita of less than $2,000 in the late 1990s and early 21st century. For the first time, in 2021, the South Korean Ministry of Unification estimated that the North Korean private sector outgrew the public sector until 2020.[12][35][36] However, the 8th Congress of the Workers' Party of Korea introduced new policies in 2021 which aim to strengthen the old command economy,[37][38][39] it has been gradually implementing these policies forcing markets and private economic activities to significantly shrink.[40]

  1. ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Archived from the original on October 28, 2019. Retrieved September 29, 2019.
  2. ^ a b c d e f g h i j k l "CIA Factbook: Korea, North". CIA.gov. Central Intelligence Agency. Archived from the original on August 12, 2015. Retrieved April 27, 2020.Public Domain This article incorporates text from this source, which is in the public domain.
  3. ^ "Population, total – Korea, Dem. People's Rep". World Bank. Archived from the original on February 27, 2022. Retrieved December 21, 2024.
  4. ^ a b c d "Gross Domestic Product Estimates for North Korea in 2023". Bank of Korea. July 26, 2024. Retrieved July 27, 2024.
  5. ^ "Labor force, total – Korea, Dem. People's Rep". data.worldbank.org. World Bank. Archived from the original on June 8, 2020. Retrieved April 27, 2020.
  6. ^ "Employment to population ratio, 15+, total (%) (modeled ILO estimate) – Korea, Dem. People's Rep". data.worldbank.org. World Bank & ILO. Archived from the original on July 31, 2020. Retrieved April 27, 2020.
  7. ^ Lee, Suk. "How High is North Korea's Real Employment and Income?" (PDF). econstor.eu. econstor. p. 10. Archived from the original (PDF) on September 16, 2024. According to North Korea's official data, of those aged 20-59, 88% are employed, which represents almost zero unemployment
  8. ^ "Unemployment Total (estimate) Korea, Dem. People's Rep". World Bank. Archived from the original on May 25, 2019. Retrieved May 1, 2023.
  9. ^ a b "OEC – North Korea (PRK) Exports, Imports, and Trade Partners". oec.world. Archived from the original on January 13, 2021. Retrieved June 24, 2021.
  10. ^ Samuel, Ramani (June 24, 2024). "From Reluctant Enforcer to Outright Saboteur: Russia's Crusade Against North Korea Sanctions". 38north.org. 38north. Archived from the original on June 27, 2024. Retrieved September 16, 2024.
  11. ^ Cite error: The named reference 38north-20170406 was invoked but never defined (see the help page).
  12. ^ a b "North Korea's private sector overtakes state for first time under Kim Jong-un". The Independent. December 16, 2021. Archived from the original on December 16, 2021. Retrieved December 17, 2021.
  13. ^ Andrew Jabobs (October 14, 2012). "North Koreans See Few Gains Below Top Tier". The New York Times. Archived from the original on October 15, 2012. Retrieved October 15, 2012.
  14. ^ Ruediger Frank (October 2, 2012). "An Atmosphere of Departure and Two Speeds, Korean Style: Where is North Korea Heading?". 38 North. School of Advanced International Studies. Archived from the original on October 24, 2012. Retrieved October 25, 2012.
  15. ^ Cite error: The named reference baron-20130311 was invoked but never defined (see the help page).
  16. ^ Andrei Lankov (April 29, 2014). "Capitalism in North Korea: Meet Mr X, one of the new business elite". The Guardian. Archived from the original on July 14, 2014. Retrieved July 13, 2014.
  17. ^ Cite error: The named reference aljazeera-20140327 was invoked but never defined (see the help page).
  18. ^ Cite error: The named reference 38north-20170907 was invoked but never defined (see the help page).
  19. ^ Yeo, Andrew (2021). "State, Society and Markets in North Korea". Cambridge University Press. doi:10.1017/9781108888592. ISBN 9781108888592. Archived from the original on September 26, 2021. Retrieved September 26, 2021.
  20. ^ "A Changing North Korea". Archived from the original on November 11, 2022. Retrieved November 11, 2022.
  21. ^ Josh, Smith; Sudev, Kiyada (May 27, 2023). "North Korea spent the pandemic building a huge border wall". reuters. Archived from the original on June 15, 2024.
  22. ^ "＜Inside N. Korea＞ New proclamation calls for intensified control over the economy…Intense crackdowns on circulation of goods and use of foreign currency (3) Proclamation reveals Kim regime's anti-market policies…government crackdowns down heavily on private economic activities". japan: asiaPRESS. RIMJIN-GANG. September 22, 2023. Archived from the original on August 15, 2024.
  23. ^ ""A Sense of Terror Stronger than a Bullet" The Closing of North Korea 2018–2023". human rights watch. Archived from the original on September 2, 2024.
  24. ^ "＜Inside N. Korea＞Food sales banned in markets, leading to anxiety and concern while deepening the poverty suffered by the poor". japan: asiaPRESS. RIMJIN-GANG. March 16, 2023. Archived from the original on August 15, 2024.
  25. ^ Jiro, ISHIMARU (December 14, 2022). "＜Inside N. Korea＞ The Kim regime shifts its food policy, suppressing food sales in markets while creating a state monopoly on the food supply". japan: asiaPRESS. RIMJIN-GANG. p. english. Archived from the original on August 15, 2024.
  26. ^ Jiro, ISHIMARU (January 22, 2024). "What occurred behind the veil in N.Korea 2020-2023…A disaster unfolding due to shifts in the Kim Jong-un regime's policies…Part 3: Kim Jong-un's anti-market policies". asiaPRESS. RIMJIN-GANG. Archived from the original on August 15, 2024.
  27. ^ Hwan yong, Kim (February 9, 2022). "North Korea pushes to revive centralized trade system". voakorea.com (in Korean). Voice of America Korea. Archived from the original on April 25, 2024. Retrieved September 6, 2024.
  28. ^ "＜Inside N. Korea＞State-led smuggling resumes in the Yalu River, sends seafood and copper ore to China, bringing in UN-sanctioned goods like cars and machinery". asiaPRESS. RIMJIN-GANG. May 21, 2024. Archived from the original on August 15, 2024.
  29. ^ "＜Inside N. Korea＞ Implementation of the large-scale restructuring of trading companies(2) Trading companies criticized for becoming run like "personal property" and for corrupt activities". asiaPRESS. RIMJIN-GANG. March 22, 2024. Archived from the original on August 15, 2024.
  30. ^ "＜Inside N. Korea＞ Implementation of the large-scale restructuring of trading companies (1) Called "anti-socialist hotbeds," government forces 'bases' of trading companies to close down and consolidate". asiaPRESS. RIMJIN-GANG. March 19, 2024. Archived from the original on August 15, 2024.
  31. ^ "＜Inside N. Korea＞New proclamation calls for intensified control over the economy…Intense crackdowns on circulation of goods and use of foreign currency (1) The authorities confiscate Chinese yuan and US dollars". japan: asiaPRESS. RIMJIN-GANG. August 21, 2023. Archived from the original on August 15, 2024.
  32. ^ "＜Inside N. Korea＞The authorities finally start cracking down on housing transactions, "Severely punish anti-socialist behavior"". asiaPRESS. RIMJIN-GANG. August 8, 2023. Archived from the original on August 15, 2024.
  33. ^ Cite error: The named reference Savada1994 was invoked but never defined (see the help page).
  34. ^ Maddison, Angus "The World Economy A Millennial Perspective", OECD Development Studies Centre, ISBN 92-64-02261-9, (Published 2004), Table A3-c, also available on the Internet at "Archived copy" (PDF). Archived from the original (PDF) on May 30, 2012. Retrieved May 9, 2013.{{cite web}}: CS1 maint: archived copy as title (link) Retrieved May 8, 2013
  35. ^ "Private sector overtakes state as North Korea's top economic actor under Kim – S.Korea". WTVB | 1590 AM · 95.5 FM | The Voice of Branch County. Archived from the original on December 16, 2021. Retrieved December 17, 2021.
  36. ^ Shin, Hyonhee (December 16, 2021). "Private sector grows in North Korea". Manning River Times. Archived from the original on December 17, 2021. Retrieved December 17, 2021.
  37. ^ Ruediger, Frank (January 15, 2021). "Key Results of The Eighth Party Congress in North Korea (Part 1 of 2)". 38north.org. 38north. Archived from the original on August 21, 2024. Retrieved September 5, 2024.
  38. ^ Lankov, Andrei (January 4, 2022). "North Korea a hermit kingdom again". eastasiaforum.org. East asia forum. Archived from the original on March 6, 2024. Retrieved September 5, 2024.
  39. ^ Katzeff Silberstein, Benjamin (March 6, 2024). "North Korea's economy in retrograde". eastasiaforum.org. East Asia Forum. Archived from the original on June 19, 2024.
  40. ^ Myong-sung, Kim. "[Kim Myongsung's Inside North Korea] Pyongyang's Donju Collapse and Market Decline: Ethnic Chinese R". sand.or.kr (in Japanese). the SAND Institute. Archived from the original on September 5, 2024. Retrieved September 5, 2024.


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Economy of North Korea

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