North Korea Economy KDI Review of the North Korean Economy, November 2024 November 28, 2024
- Summary
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This issue delves into the intensifying North Korea-Russia relations and their economic, military, and diplomatic ramifications. Following the "Comprehensive Strategic Partnership Agreement," North Korea has deepened political, economic, and military cooperation with Russia. This alliance, driven by the protracted Russia-Ukraine conflict, has enabled North Korea to secure foreign currency and rejuvenate its defense industry through arms exports and labor deployment. Russia, in turn, supplies military technology and economic aid, advancing North Korea's defense modernization and provocation capabilities. Nevertheless, Russia is unlikely to supplant China as North Korea's primary economic partner, given China's stable trade relations and superior qualitative contributions to economic growth. Militarily, North Korea's collaboration with Russia accelerates its strategic weapons development and offensive capabilities. However, Russia is expected to temper its support to balance international criticism with its wartime priorities. As the incoming Trump administration raises the prospect of a ceasefire in Ukraine, South Korea must ensure active participation in U.S.-Russia discussions on Korean Peninsula issues and mitigate the security risks posed by North Korea's expanding defense capabilities.
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