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North Korea Economy KDI Review of the North Korean Economy, September 2025 September 30, 2025

North Korea Economy

Monthly published paper on the current status of the North Korean Economy and major
issues on inter-Korean economic cooperation assisting academia, policy makers and corporate sectors to better understand North Korea

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KDI Review of the North Korean Economy, September 2025
September. 30. 2025
Summary
This issue examines key policy themes in North Korea’s economy under Kim Jong-un. The 2023~24 hikes in state-set prices and wages appear calibrated against the July 1 Economic Management Improvement Measures of 2002, but were implemented without public annoucement and with limited spillovers, and clearly served to reinforce tighter unified central control after the no-deal Hanoi summit―most notably by shoring up state grain outlets. The “20×10 Provincial Development” program, formalized in 2024, aims to build standardized small local factories in 20 cities and counties annually over a decade to secure supplies of daily necessities; rollout relies on centrally guaranteed resources and KPA Unit 124, and from year two pairs plant construction with upgrades to health facilities and science-and-technology hubs. Sustaining the initiative will require reliable power, trained technical staff, and productive raw-material bases. Meanwhile, the premier’s solo field inspections (hyeonjiryohae) have become routine, complementing the leader’s on-the-spot guidance; the inspectconsultremedy cycle strengthens implementation and underscores Cabinet accountability, while repeated coverage channels responsibility for economic affairs to the Cabinet and helps shield the leader’s authority.
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