contents go

KDI - Korea Development Institute

KDI - Korea Development Institute

SITEMAP

Popular Search Terms

HOT ISSUE

KDI NEWS 2025 Knowledge Exchange Days (KED) Event Successfully Concludes with Vibrant Participation

Hosted by the Ministry of Economy and Finance (MOEF) and managed by the KDI GKEDC Operating Team, successfully took place on November 6-7, focusing on “Integrated Solutions for Climate Action”

December 09, 2025
KDI FOCUS The Impact of Demographic Change on Household Debt

Korea's household debt-to-GDP ratio, which has risen over the last two decades due to intergenerational asset and housing accumulation, is expected to reverse as population aging slows longevity gains, requiring coordinated financial and labor reforms for stability.

August 05, 2025
Economic Outlook KDI Economic Outlook 2025-2nd Half

The Korean economy is expected to grow by around 1.8% in 2026, as export growth slows but domestic demand recovers.

November 11, 2025
KDI FOCUS Health Insurance Expenditure Growth: Driving Factors and Policy Implications

To curb soaring primary care prices requires reforming fee-for-service and strengthening expenditure review.

April 21, 2025
KDI News 2025 KDI GKEDC Capacity-Building Program

Enhancing Sustainable Urban Mobility in Cambodia

September 22, 2025
KDI FOCUS Reforming Korea’s Wholesale Electricity Market amid Renewable Expansion

To ensure power stability amid rising renewables, Korea must reform its rigid wholesale electricity pricing to incentivize essential grid investments.

September 04, 2025
KDI FOCUS The Role of Capital Structure in Real Estate Project Financing: Risk, Cost, and Policy Implications

A more sophisticated policy framework is required to enhance capital adequacy, address regulatory arbitrage associated with PFVs, mitigate risks in real estate project financing, and improve the overall capital structure of financial institutions

October 17, 2025
KDI News What‘s Up Newsletter Vol.27

The 27th issue of the KDI What's Up newsletter is now available!

November 19, 2025
BACK
HOME
BACK

North Korean Economy

Search results : 192

12345678910
Join our Newsletter

World's Leading Think Tank, Korea Development Institute

Security code

We reject unauthorized collection of email addresses posted on our website by using email address collecting programs or other technical devices. To access the email address, please type in the characters exactly as they appear in the box below.

captcha
KDI Staff Information

Please enter the security code to prevent unauthorized information collection.

KDI Staff Information

Please check the contact information.

OK
KDI Staff Information

Please check the contact information.

OK

Summary

Other Research KDI Review of the North Korean Economy, November 2025
The November issue offers a synthesized assessment of the evolution of inter-Korean economic cooperation and the policy context shaping current approaches toward North Korea. Noting that cooperation has long been constrained by a structural cycle of “despair and contrivance,” the issue highlights that future progress will depend on realistic expectations of North Korea’s policy trajectory, a cross-party consensus on North Korea policy, strategic project design aligned with future needs, and a principled approach to engagement. It also reviews current debates on economic involvement with the North and evaluates the Lee Jae Myung administration’s tension-management strategy, observing that Pyongyang’s “two-state” declaration, its tightening alignment with Russia, and the persistence of international sanctions sharply limit near-term prospects. In this environment, policy efforts are expected to center on sustaining humanitarian channels, strengthening legal and institutional foundations, and preparing the groundwork for a future peace-economy framework, alongside building mid- to long-term policy capacity for potential shifts in geopolitical conditions. Overall, the issue provides a balanced view of the constraints and possible avenues for inter-Korean economic cooperation amid strained inter-Korean relations, offering policy insights for building a more sustainable framework for engagement.

Summary

Other Research KDI Review of the North Korean Economy, October 2025
The October issue analyzes the growing sophistication of North Korea’s cyber strategy and the evolving international response. Under intensified sanctions that have choked traditional foreign currency channels, Pyongyang has turned to cyber operations―especially cryptocurrency theft―as a critical source of funds for its nuclear and missile programs. Blockchain firm Chainalysis estimates that North Korea stole around USD 1.34 billion in 2024, accounting for over 60 percent of global losses. These attacks now encompass money laundering, data breaches, and supply chain infiltration, posing systemic risks to financial stability and national infrastructure. The United States, Japan, and the European Union have tightened sanctions and intelligence sharing, but weakened UN oversight continues to constrain coordinated action. In South Korea, the absence of a unified cybersecurity law and offensive defense capacity underscores the need for stronger institutional and publicprivate collaboration. North Korea’s cyber operations thus represent not merely a technological threat but a structural challenge to global financial security and state sovereignty, demanding a more integrated, preemptive, and internationally coordinated response.

Summary

Other Research KDI Review of the North Korean Economy, September 2025
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.

Summary

Other Research KOR KDI Review of the North Korean Economy, August 2025
Since Kim Jong-un assumed power, North Korea has rewritten about 67 percent of its body of law. The regime touts rule of law credentials and a “normal state” posture. In practice it governs by law that is punitive, supervisory, and centrally directed. It has added modern legal fixtures such as ship mortgages, rights and interests, and property enforcement, yet safeguards for due process and basic rights remain thin. The 2021 Social Insurance and Social Security Law consolidates programs and introduces contributory financing to cement cohesion, yet it exposes deficits in equity and internal coherence. Changes to commercial and distribution statutes, along with the digitization of distribution, serve fiscal extraction and transaction surveillance rather than resident convenience, and they do not signal marketization. Amid external signaling such as the ‘two-state theory,’ South Korea should overhaul the legal and institutional framework for inter-Korean economic cooperation and strengthen agreement enforceability and risk governance. A preemptive legal foundation needs to be established, including robust investment protection, effective commercial dispute resolution, and clear guidelines for sanctions and risk response.

Summary

Research Monograph KOR Market Price System in North Korea: Policy Perspectives
This study revisits North Korea’s market price system to (i) address recent doubts about the reliability of external price observations using a long-run commodity-price series and (ii) broaden analysis beyond staples to include services, labor, finance, and quasi-taxes. Based on an original field survey in Pyongyang, Sinuiju, and Hyesan from September 2023 to October 2024, it compiles a long-run commodity-price series, capturing 55 service prices and approximately 40 quasi-tax items. Econometric time-series analysis reveals linkages between key North Korean commodity prices, Chinese and international benchmark prices, and the market exchange rate (North Korean won/U.S. dollar), while descriptive statistics systematize the incidence and regional variation of non-commodity prices.

Three main findings emerge. First, despite well-known reliability issues in North Korean market price data, externally collected observations remain informative, as inconsistencies across sources reflect equilibrium features of thin, segmented markets rather than mere reporting errors. Second, commodity prices show a relatively stable, competitive formation with clear international pass-through effects before the 2020 border closure, whereas service fees, unofficial financial rates, and quasi-taxes show greater dispersion and stronger dependence on local market power and informality. Third, quasi-taxes impose a significant economic burden, with households facing a rolling menu of 3540 compulsory contributions―averaging four items per month and totaling 34,00050,000 North Korean won―consuming a notable share of disposable income.

These results underscore the need to integrate non-commodity prices into future assessments of household welfare, regional inequality, and the transmission of external shocks within North Korea’s hybrid economy.

Summary

Other Research KOR KDI Review of the North Korean Economy, July 2025
Following the 2023 Peace Economy Special Zone Act, comprehensive strategies have been presented to revitalize border regions that endured exceptional sacrifices as division frontlines and realize an inter-Korean economic community. Gyeonggi (province), Incheon (city), and Gangwon (province) border regions remain underdeveloped due to overlapping regulations including the Metropolitan Area Readjustment Planning Act and Military Installations Protection Act, yet possess significant potential to become key inter-Korean cooperation hubs through strategic collaboration based on regional characteristics. Northern Gyeonggi serves as the central nucleus for Korean Peninsula economic integration and industrial cooperation, while Gangwon holds differentiated strategic value as a gateway for northern economic expansion via the East Sea and hub for Mt. Geumgang-Seoraksan tourism and DMZ ecological tourism. Effective implementation requires rational regulatory relaxation including the Military Installations Protection Act, legal-institutional foundations encompassing inter-Korean integration law research, and phased financing mechanisms utilizing public, private, and overseas resources. Consistent policy implementation unaffected by inter-Korean relations fluctuations and close central-local government cooperation systems are imperative for sustainable progress.

Summary

Other Research 2024/2025 The DPRK Economic Outlook
The year 2024 marked a pivotal moment in North Korea’s economic trajectory, defined by significant internal and external shifts. Domestically, the regime intensified its consolidation of control over economic governance, placing renewed emphasis on the Cabinet-centered system. This shift signaled a strategic departure from the semi-decentralized and informal mechanisms that had previously supported macroeconomic stability during the early years of Kim Jong Un’s leadership. Externally, North Korea’s growing military and economic cooperation with Russia opened new channels for sanctioned trade―particularly in the defense sector―while its economic engagement with China showed signs of stagnation, suggesting a potential recalibration of longstanding external dependencies.

Summary

Other Research KOR KDI Review of the North Korean Economy, June 2025
The June 2025 issue examines the transformation of North Korea’s tourism sector following the enactment of a comprehensive Tourism Law in August 2023, marking a strategic shift from regionally confined policies to a nationwide legislative framework. Initially developed in the 1950s as a tool for ideological propaganda, tourism evolved into an economic venture by the 1980s and, by the 1990s, became a key channel for securing foreign currency. Under the leadership of Kim Jong-un, the sector has gained prominence as a sanctions-resilient revenue source, spurring major infrastructure projects such as the Munsu Water Park, Masikryong Ski Resort, and Yangdok Hot Springs Complex. The upcoming June 2025 launch of the Wonsan-Kalma Coastal Tourist Zone―touted as Kim’s flagship initiative―introduces an integrated resort model aimed at promoting extended stays and upscale tourism.
Following pandemic-related disruptions, inbound tourism has cautiously resumed, with Russia emerging as the primary target market due to relatively low political sensitivity. In 2024, all foreign arrivals were Russian nationals. North Korea is now pivoting from its pre-pandemic China-dependent model―where Chinese tourists accounted for over 80% of visitors―toward a dual-market strategy focused on China and Russia. The sector’s future hinges on its ability to attract visitors and boost spending from these neighboring countries.

Summary

Other Research KOR KDI Review of the North Korean Economy, May 2025
The May issue presents four analytical studies on North Korea’s ICT development and its economic implications. Mobile telecommunications proliferation has significantly enhanced income for vulnerable populations, demonstrating economic utility in areas such as exchange rate data, distribution, and financial services―even under stringent state controls. The analysis of the mobile application sector confirmed the expanding use of educational and medical apps and ongoing efforts to build an ecosystem grounded in private-sector participation, despite a user base exceeding six million, a household penetration rate of 66.4%, and persistent digital divides. The Computerized Numerical Control (CNC) initiative to transform the people’s economy, particularly through the dissemination of distributed control systems into light industry and agriculture, shows measurable progress but continues to face sustainability challenges due to limited operational capacity and technical support. Analysis of ICT literature from 20202024 indicates a self-reliant policy trajectory, positioning ICT as a strategic pillar under the national goal of building a science and technology powerhouse. These findings collectively highlight North Korea’s ongoing efforts to leverage ICT for economic advancement and livelihood improvement amid systemic constraints.

Summary

Other Research KOR KDI Review of the North Korean Economy, April 2025
North Korea’s market prices, crucial for economic analysis, suffer credibility issues due to opaque data collection and unclear reporting, further exacerbated by sanctions and COVID-19. Advertising remains stagnant amid economic constraints and strict media control, though limited branding and promotional impacts have appeared in select products. Volatility in wholesale and retail prices increased significantly following pandemic-induced border closures and altered distribution structures, notably with expanded wholesale margins. Post-unification social security proposals suggest temporarily separate systems given inter-Korean economic disparities, with differentiated approaches for basic welfare and social insurance. Despite stalled inter-Korean exchanges, North Korea’s maritime and fisheries research continues accumulating essential data, underscoring the need for ongoing studies. Given changing international conditions, establishing road-centered multimodal logistics infrastructure is imperative for future inter-Korean transport. Lastly, despite ongoing disaster management and forest restoration efforts to mitigate climate risks, severe deforestation remains unresolved.