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