Introduction

Following a year of new possibilities of overcoming the shackles of international sanctions, 2019 was full of recurring hope and devastation, and indifference and passion for North Korea. Indeed, the success of the Panmunjeom summit (Apr. 27), Pyeongyang summit (Sept. 19) and the US-North Korea Singapore summit in 2018 gave hope for a paradigm shift. In particular, notable strides were made in the transportation sector with the two Koreas agreeing to connect and modernize their transportation networks, and conducting joint on-site inspections and holding a groundbreaking ceremony.

However, 2019 began with the shocking breakdown of the second US-North Korea summit and ended with reports on the 5th Plenary Meeting of the 7th Congress of the Workers’ Party of Korea. At the same time, relations between the two Koreas began to sour with the North demanding that South Korea act as an agent of the same nation rather than being a mediator or facilitator. In the New Year''''''''''''''''''''''''''''''''s Address, the regime announced that the people’s economy had made significant progress, and that a new era had opened up for inter-Korean relations. Moreover, the address emphasized that North Korea was dramatically changing the dynamics of US-North Korea relations, and contributing to ensuring peace and security on the Korean peninsula as well as the region as a whole.

However, within just a year, this positivity and optimism abruptly devolved into negativity and pessimism. In a press release about the 5th Plenary Meeting, the regime declared its commitment to maintaining a strong political, diplomatic and military offensive in facing the challenges head-on—also referred to as a ‘frontal breakthrough’—and has since made proclamations about shocking actions and development of strategic weapons, amongst others.

Meanwhile, through the 2020 Presidential New Year’s Address, the South Korean government proposed five major inter-Korean cooperation projects which include: resuming Mt. Geumgang tours and operations at Gaeseong Industrial Complex; converting the DMZ into an international peace zone and jointly listing it as a UNESCO world heritage site; collaborating in border areas to jointly respond to disasters, blights, etc.; connecting North-South railroads and roads and; cooperating in sports (creating single teams for the Tokyo Olympics and entering together, and jointly hosting the 2032 Olympic Games). However, persuading North Korea to proactively accept these proposals will not be an easy feat given the current tense relations between North Korea, South Korea and the US.

Accordingly, this study aims to assess the changes in North Korea’s transportation sector in 2019 and present an outlook for 2020 amidst the rapid developments on the Korean peninsula.

* This article is part of 2019 The DPRK Economic Outlook

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