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DPRK economic statistics roundup

Wednesday, October 22nd, 2008

Reuters published a short article stating many of the DPRK’s economic statistics. Most of these can already be found on this site, but in terms of a quick update, this is not bad. The author even acknowledges the wide disparity of the DPRK’s national and per capita income estimates, which is something most articles on these topics fail to address:

*SIZE OF ECONOMY

Annual gross domestic product in 2007 was just over $20 billion, a fall of 2.3 percent from the previous year due to the effects of widespread flooding, according to South Korea’s central bank. However, a report commissioned by a former South Korean unification minister estimated it was less than half that.

*HOW MUCH DO NORTH KOREANS HAVE

Estimates of per capita income range from $400 to $1,000. Whichever figure is true, the population of around 23 million is one of the world’s most destitute. That compares to around $20,000 in capitalist South Korea, once the poorer of the two halves of the Korean peninsula. North Korea’s economy has declined over the past two decades.

*HUNGRY NATION

North Korea’s state doctrine preaches self-reliance. But for years it has been unable to produce enough food for its people and relies heavily on foreign aid. Even in good harvests, it produces about 20 percent less than it needs. An estimated 1 million North Koreans perished during famine in the 1990s.

Last month, the U.N. World Food Programme estimated that North Korea would need some $500 million in food aid over the next year to avoid a humanitarian crisis.

*WHO TRADES WITH NORTH KOREA AND WHAT CAN IT SELL?

Constantly running a trade deficit, North Korea offers cheap labor mostly for relatively low-skilled manufacturing industries, such as textiles. Its chief attraction, especially to neighboring China, is its natural resources, especially coal and minerals.

Some sources, including the U.S. government, believe it bolsters its trade through the illicit exports of weaponry, drugs and counterfeit U.S. dollars.

Its biggest trade partner is China which, by one estimate, accounted for an estimated two-thirds of its total foreign trade last year. By contrast, in the first eight months of this year, Pyongyang accounted for just 0.12 percent of China’s total foreign trade.

Of China’s imports from the North, close to 60 percent were coal and minerals such as iron ore, zinc, lead, molybdenum and precious metals.

South Korea is Pyongyang’s other main trade partner. The two operate an industrial park on the northern side of the border where manufacturers from the South use cheap local labor.

The full article can be found hrere:
FACTBOX: Some facts about the North Korean economy
Reuters
Jonathan Thatcher
10/20/2008

Posted in Agriculture, Agriculture statistics, Coal, Foreign aid statistics, GDP statistics, International trade, Mining/Minerals, RoK Ministry of Unification, Statistics, Trade Statistics | Comments Closed

New CRS reports on North Korea available

Tuesday, September 23rd, 2008

I have updated the list of Congressional Research Service (CRS) reports published on North Korea and posted them here. I have also added a hyperlink under “pages” on the menu tab to the right.

Updates include:
US Assistance to North Korea: July 31, 2008
North Korean Ballistic Missile Threat: January 24, 2008
North Korea’s Nuclear Weapons Program: January 21, 2008
North Korea’s Abduction of Japanese Citizens and the Six-Party Talks: March 19, 2008
The Kaesong North-South Industrial Complex: February 14, 2008
The North Korean Economy: Leverage and Policy Analysis: August 26, 2008

Posted in Agriculture, Agriculture statistics, Demographics, Energy, Foreign aid statistics, GDP statistics, International trade, Manufacturing, Military, Mining/Minerals, Political economy, Statistics, Trade Statistics, USA | Comments Closed

What comes after Sunshine?

Wednesday, August 27th, 2008

The policy of mutual benefits and common prosperity

It doesn’t have the same ring as “Sunshine Policy,” and the acronym PMBCP is too long, but this is the English name of South Korean President Lee Myung-bak’s policy towards the DPRK.

According to Yonhap:

We decided to fix an English name for the policy because there have been many different translated versions,” Kim Ho-nyoun, spokesman for the Unification Ministry, the top Seoul office on North Korea, told reporters.

He said the name was chosen because it best suits the government’s policy of pursuing a relationship of co-existence and co-prosperity with the North beyond the current phase of reconciliation.

The government aims at a firmer inter-Korean reconciliation than its two liberal predecessors, seeking to bring tangible benefits not only to the North but to the South as well, officials said.

President Lee Myung-bak pledged during his election campaign to help the North triple its per capita gross national income to US$3,000 if it abandons its nuclear programs and opens itself to the world.

The so-called “Vision 3,000” program is now part of Lee’s broader North Korea policy, officials said.

The goal of tripling the DPRK’s per capita GNI (GNP) to $3,000 is based on the assumption that the DPRK’s current per capita income is close to $1,000, which is a wild over statement. Some more realistic assesments put it as low as $368 per year. Here is a wrap up of the DPRK’s most recent economic stats from the Bank of Korea.

Read the full article here:
Gov’t sets official English name for N.K. policy
Yonhap
Shim Sun-ah
8/26/2008

Posted in GDP statistics, South Korea, Statistics | 1 Comment »

DPRK economy shrinks for second year: Bank of Korea

Tuesday, June 17th, 2008

North Korea does not publish economic data. The size of North Korea’s economy is estimated by South Korea’s Central Bank (Bank of Korea), the US Central Intelligence Agency (CIA), and other think tanks such as the Sejong Institute (Lee Jong Seok).

According to a recent report by the Bank of Korea, North Korea sufferd its second full year of economic contraction (as defined by GDP), 1.1% in 2006 and 2.3% in 2007. The bank estimates North Korea’s 2007 gross national income (GNI/GNP) at $26.7 billion, per capita GNP at $1,152 (assuming population of 23 million). If you are interested in knowing the difference between GNP and GDP, click here.

Here are some highlights from the report:

Agriculture, forestry & fisheries marked a 9.4% decrease following a 2.6% decrease in 2006

Mining increased 0.4% in 2007, down from 1.9% increase in 2006

Manufacturing increased 0.8%, higher than 0.4% 2006 increase. -1.7% growth in light industry, due to the decrease in food products and beverages. +2.3% growth in heavy industries led by expansion of metal and machinery products.

Electricity, gas & water production increased 4.8%, (+2.7% in 2006), from hydroelectric and steam power generation.

Construction production -1.5%, (-11.5% in 2006), from reduced non-housing construction and civil engineering.

Services +1.7%, (+1.1% in 2006). Hotel, restaurant, transport, post & telecom industry expanded.

Trade volume (goods) fell 1.8% to $2.941 billion, 1/248 South Korea’s. Exports fell 3.0%, imports fell 1.3%.

These estimates are based on trade figures obtained from the Korea International Trade Association, Korea Trade and Investment Promotion Agency, fuel and food aid figures from aid groups such as the International Red Cross and the World Food Program, as well as information provided by frequent visitors.

More information here:
Full report by Bank of Korea and data (recomended)

North Korea’s Economy Shrank in 2007, Second Annual Contraction
Bloomberg
Heejin Koo
6/17/2008

Posted in Agriculture, Agriculture statistics, Bank of Korea, Construction, Copper, Dams/hydro, Demographics, Energy, Forestry, GDP statistics, Hoteling, International trade, Light Industry, Lumber, Manufacturing, Mining/Minerals, Real estate, Restaurants, Statistics, Tourism, Trade Statistics, Transportation | Comments Closed

(Update) Lee Jong-seok slams Bank of Korea (and CIA) estimates of North Korean economy

Wednesday, March 12th, 2008

UPDATE 2: On March 6, 2008 the CIA World Fact Book on North Korea was updated. Yonhap reports that the CIA’s estimate of North Korean GDP in 2007 (adjusted for PPP) is unchanged from 2006 at $40 billion and that per-capital GDP has increased from $1,800 to $1,900. But the story also reports that the CIA has estimated an increase in North Korea’s population–23,301,725 in 2007, up from 23,113,019 in 2006.

So my quesiton is this…

If GDP is unchanged, how do you increase per capita GDP without reducing the population numbers?

On a side note…one of my former economics professors used to say, “Stalin increased per capita GDP in the Soviet Union by reducing the denominator.”

Update 1: From Dr. Petrov:
Per-capita GNI at $368 to $389 seems to be right [from the revised estimate below]. It’s approximately 1/3 of the Soviet figure by the time it collapsed (around $1000 per-capita). These days North Koreans still live poorer than people in the USSR.

Original Post: Yonhap reports that Lee Jong-suk, former Minister of Unification and senior fellow at the Sejong Institute, claims that the South Korean Bank of Korea has radically overestimated North Korea’s Gross National Income and military spending.

In August, the Bank of Korea (BOK) announced that North Korea’s nominal gross national income (GNI) amounted to US$25.6 billion in 2005, about 35 times smaller than South Korea’s. GNI refers to a nation’s gross domestic product plus its trade loss or gain arising from changes in trade. The bank also estimated North Korea’s per-capita GNI at $1,108 that year, about 17 times smaller than that of its rival South Korea.

The U.S. Central Intelligence Agency’s (CIA’s) latest estimate of North Korea’s nominal GNI is $40 billion.

“If the BOK statistics are true, North Korea’s per-capita GNI represents two thirds of China’s $1,736, and nearly double Vietnam’s $616,” Lee said in a monthly magazine published Friday by the institute in the southern suburbs of Seoul. “Nobody would believe it if someone said North Korea is two times wealthier than Vietnam that is close to resolving its food problems,” Lee said.

The bank used a “wrong method” of employing South Korea’s price and value-added rate information in calculating North Korea’s GNI, the expert said. One dollar is about 150 North Korean won and about 950 South Korean won.

Lee said he commissioned financial experts to calculate North Korea’s GNI using “a method generally used by countries over the world” while in office. “North Korea’s GNI came to $8.4 to 8.9 billion with a per-capita GNI at $368 to $389 based on the 2005 foreign currency market rate,” he said, adding the estimates better reflect North Korea’s economic reality.

North Korea’s defense spending would be around $2.1 to $2.6 billion, not $5 billion, when the same calculation method is used, he said.

Read all of the stories here:
N. Korea’s GDP estimated at $40 billion: CIA
Yonhap
3/12/2008

N. Korean economy overestimated says expert
Yonhap
3/8/2007

Posted in Foreign aid statistics, GDP statistics, Labor conditions/wages, RoK Ministry of Unification, Statistics | 4 Comments »

DPRK economic statistics from KEI (BoK data)

Saturday, February 2nd, 2008

In October, the Korea Economic Institute published a presentation of North Korean economic data assembled by the Bank of Korea. Basic stats below:

GDP: -1.1% in 2006 (+3.8% in 2005)-Due to decrease in agriculture output.
Services are the largest component of the economy (34%)
Trade volume (exports + imports) approximately US$3 billion
2005 trading partners in order: China, South Korea, Thailand, Russia, Japan, Singapore

See the full report here: northkorea.ppt

Posted in Agriculture, Agriculture statistics, China, GDP statistics, Japan, Russia, Singapore, Statistics, Thailand, Trade Statistics | Comments Closed

N. Korea upbeat about economic future as relations with U.S. thaw

Tuesday, November 13th, 2007

Yonhap
11/13/2007

North Korea Tuesday expressed confidence in the recovery of its ailing economy devastated by years of mismanagement, economic embargoes and floods as multilateral talks on the North’s nuclear disarmament make progress.

“The circumstances for our revolution are changing in a very favorable way,” Rodong Sinmun, the organ of North Korea’s ruling Workers’ Party, said in an editorial. “The international prestige of the country is rising extraordinarily, and our economy is vigorously bouncing back with enormous energy.”

Pyongyang’s upbeat mood comes as Washington is moving to take the communist country off its list of terrorism-sponsoring countries and to lift its trading ban on condition that the North completes the disablement of its nuclear facilities and declares its nuclear programs by the end of the year under an agreement signed in early October.

North Korea started disabling its nuclear facilities in Yongbyon, north of Pyongyang, in early November.

In return for its actions, North Korea will receive 1 million tons of energy assistance from the other parties of the deal, including South Korea, the U.S., China, Japan and Russia.

The North has already received 100,000 tons of heavy fuel oil from South Korea and China. The end of the application of the U.S. Trading with the Enemy Act to the North will allow the communist state to participate in international economic activities.

“Only when we thoroughly achieve the combatant work in front of us this year, can we make a breakthrough for a new march toward the construction of economic power and decisively engage in next year’s combat,” the newspaper said.

Recent reports have painted a bleak picture of the North Korean economy. According to figures released by South Korea’s Bank of Korea, the North’s economy probably shrank 1.1 percent in 2006 compared to a year earlier because of the weakness of its agricultural and construction sectors. The decease in North Korea’s gross domestic product was a reversal of the 3.8 percent expansion in 2005 and the 6.2 percent rise in 1999.

Posted in Economic reform, Foreign direct investment, GDP statistics, International Aid, Nuclear | Comments Closed

DPRK Economic Growth Estimates for 2006

Wednesday, August 22nd, 2007

Institute for Far East Studies (IFES)
NK Brief No. 07-8-22-1

The Bank of Korea released a report on August 17 that details economic estimates on a variety of sectors in North Korea. Overall, North Korea’s Gross Domestic Product (GDP) fell 1.1 percent during 2006, the first time since 1999 that the North has failed to increase its GDP. Inclement weather was one factor that played into a fall in agricultural production, and there also appears to have been little progress in the construction of public works in the country. Overall, North Korean GNI was 2.9 percent of that in the South, with per capita GNI at 1,108 USD, 6 percent of the 18,372 USD per capita GNI in South Korea.

The entire economy of the DPRK is approximately 1/35th that of the South, with the Gross National Income (GNI) a mere 1/17th the level seen in the ROK. This shows a growing divide between the two Koreas, as the comparisons in the previous year were 1/33rd and 1/16th, respectively. Due to the North Korean nuclear issues and other foreign relations problems faced during 2006, a worsening of diplomatic relations with other countries, energy shortages and other economic woes befell the North, putting the entire economy in a difficult situation.

The North showed a weakening of the agricultural and forestry industries, increasing production by a mere 2.4 percent, 2.6 percent down from 2005. Corn and other cereal production grew by 7 percent, but rice was down 6.4 percent, and bean production was down 6.6 percent from the year before, leaving overall grain output down 3.6 percent. On the other hand, shellfish and crustacean harvests grew by 1.5 percent, while timber and livestock harvests remained unchanged.

On the mining front, coal and other non-metal mined resources showed promising increases, but production of lead, zinc, and copper fell by 1.7 percent, compared to the 3.5 percent growth posted in the previous year. Despite promising increases in production of manufactured goods and growth in the chemical and heavy industries in 2005, last year North Korean production growth rates in these fields fell flat at a mere 0.4 percent, increasing production rates of fibers, clothing and shoes, but turning out less kitchenware and food-related products. Coal and fuel products looked favorable, but fabricated metals and machine parts, as well as nonferrous metal products grew at a rate of 1.1 percent, down from 5.4 percent.

Gas-fired electrical generation was up 17 percent, while hydroelectric power grew only 2.7 percent, falling from 4.4 percent in 2005. Other infrastructure projects were also on the decline, with only 49 km of road paved in 2006.

The number of foreign tourists declined, with visitors to Kumgang Mountain falling from 366,000 in 2005 to only 265,000 last year, adding to the 21.8 percent decline in the food and lodging sector, but the transportation and communication sector grew by 5.1 percent, leading to an overall gain of 1.1 percent in the service industry.

The gap in overseas trade between the two Koreas increased from 182-fold to 212-fold as North Korean foreign trade fell off 5.2 percent. Imports in the North were up 2.3%, although seafood imports were down 48.4 percent. The slack was made up by a 34.1 percent increase in the import of plastics, a 31.2 percent increase in imported chemical goods, and a 12.4 percent increase in imported machinery.

During 2006, inter-Korean exchanges grew 27.8 percent, reaching 13.5 billion USD. South Korean exports to the North grew 16 percent as Seoul increased rice and fertilizer aid, and exports to the Kaesong Industrial Complex grew. On the other hand, North-South cooperative projects grew 52.7 percent as South Korea increasingly imported North Korean zinc, sand, and other natural resources.

In order to give some perspective to the North Korean economic data, the Bank of Korea offered the following comparisons:

DPRK/ROK/Ratio
Population (thousand) 23,079/48.297/2.1
Economic Growth (2006) -1.1%/5.0%
Nominal GNI (100 million USD) 256/8,873/34.7
Per Capita GNI (USD) 1,108/18,372/16.6
Exports (100 million USD) 9.5/3,254.6/343.8
Imports (100 million USD) 20.5/3,93.8/151.0
Coal Production (10,000 tons) 2,468/280/0.11
Electrical Use (10,000 kW) 782/6,551/8.4
Electrical Production Capacity (100 mill. KW) 225/3,812/16.9
Petroleum Imports (10,000 bbl) 384/88,843/231.4
Cereal Production (10,000 tons) 448.3/530.0/1.2
Rice Production (10,000 tons) 189.4/468.0/2.5
Seafood Harvest (10,000 tons) 92.3/303.3/3.3
Iron Ore Mining (10,000 tons) 504.1/22.7/0.05
Nonferrous Metals Mining (10,000 tons) 8.6/187.7/21.8
Automobile Production (10,000) 0.44/384.0/872.8
Steel (10,000 tons) 118.1/4,843.3/41.0
Cement (10,000 tons) 615.5/4,920.9/8.0
Fertilizer (10,000 tons) 45.4/318.3/7.0
Chemical Products (10,000 tons) 2.9/145.7/50.2
Railways (km) 5,235/3,392/0.6
Roads (km) 25,544/102,061/4.0
Port Loading Capacity (10,000 tons) 3,700/69,213/18.7
Shipping Capacity (10,000 tons) 90.4/1,180.2/13.1

Posted in Agriculture, Automobiles, Bank of Korea, Communications, Copper, Dams/hydro, Energy, Forestry, GDP statistics, Institute for Far Eastern Studies, International trade, Kaesong Industrial Complex (KIC), Mining/Minerals, Mt. Kumgang Tourist Special Zone, Railways, Sea shipping, Statistics, Tourism | Comments Closed

NK Economy Shrinks 1.1% in 2006

Thursday, August 16th, 2007

Korea Times
Na Jeong-ju
8/16/2007

North Korea’s economy posted negative growth in 2006 for the first time in eight years on decreased production of agricultural and fisheries goods, the Bank of Korea (BOK) said Thursday.

In its estimate for the North’s economic growth, the central bank said the North’s real gross domestic product (GDP) shrank 1.1 percent in 2006 from a year ago, a turnaround from a 3.8 percent expansion in 2005. Until 2006, the North’s GDP had grown for seven years in a row since a 6.2 percent rise in 1999.

The GDP is the total output of goods and services produced within a country.

“Due to bad weather, North Korea’s agricultural, forestry and fisheries production fell with the construction industry remaining sluggish,” the BOK said. “North Korea seems to have suffered a blow as its international relations deteriorated due to its nuclear issues on top of a shortage of energy.”

The economic gap between the two Koreas grew larger last year.

North Korea’s nominal GDP increased 5.8 percent from a year ago to $25.6 billion last year, while South Korea’s GDP rose to $887.3 billion. South Korea’s GDP is 34.7 times larger than that of North Korea, widening from a 32.6-fold difference in 2005.

North Korea’s per-capita gross national income (GNI) came to $1,108 last year, up from $1,056 a year earlier, while South Korea’s per-capita GNI of $18,372 was 16.6 times bigger than that of the North, expanding from a 15.5 fold-difference. The North’s population reached 23.1 million, while the South’s was 48.3 million.

North Korea’s trade remained unchanged year-on-year at $3 billion last year, compared with South Korea’s $634.9 billion. The South’s trade was 212 times bigger than the North’s last year, rising from a 182-fold difference in 2005.

Pyongyang saw its exports dip 5.2 percent year-on-year to $950 million in 2006 as outbound shipments of animal products, non-metal goods and machinery decreased, while imports gained 2.3 percent to $2.1 billion.

Inter-Korean trade increased 27.8 percent from a year earlier to $1.4 billion. South Korea’s shipments to North Korea advanced 16 percent to $830.2 million, mainly on increased rice and fertilizer aid.

Inbound shipments from the North jumped 52.7 percent to $519.5 million on a hike in inter-Korean projects and mineral imports, the BOK said.

North Korea’s agricultural, forestry and fisheries industry declined 2.6 percent year-on-year last year, a turnaround from a 5 percent gain in 2005. The construction industry dipped 11.5 percent after gaining 6.1 percent the previous year.

The mining sector growth decelerated to 1.9 percent from 3.5 percent. Its manufacturing sector expansion slowed to 0.4 percent from 4.9 percent. The services industry grew 1.1 percent last year after increasing 1.3 percent in 2005, the central bank said.

North Korean economy posted 2006 downturn
Joong Ang Daily
Jung Ha-won
8/17/2007

North Korea’s economy shrank for the first time in eight years last year as agricultural production declined due to natural disasters and sluggish infrastructure development, according to estimates by South Korea’s central bank.

The Bank of Korea said yesterday that it believes North Korea’s 2006 gross domestic product declined 1.1 percent from a year earlier, the first downturn since 1999. The BOK, since 1991, has estimated the figures based on data from South Korean intelligence agencies and other research institutes. North Korea does not release economic data.

According to the estimate released yesterday, North Korea’s agriculture and marine industries last year declined 2.6 percent from 2005, when production rose by 5 percent.

“North Korea suffered from a serious flood last year, in stark contrast to 2005 when there was no major flood and farm production was good,” said a BOK official who refused to be named.

Growth in mining production, one of North Korea’s major industries, slowed to 1.9 percent from 3.5 percent in 2005. Manufacturing inched up 0.4 percent, down from 4.9 percent growth in 2005.

Construction sector production showed the biggest downturn at 11.5 percent from a year earlier, compared to 6.1 percent growth in 2005, as road and railway construction slowed, the central bank said.

Using satellite data, the bank estimated North Korea built just 49 kilometers (30.4 miles) of new roads last year, a sharp decline from 310 kilometers built in 2005.

Posted in Agriculture, Forestry, GDP statistics, International trade, Manufacturing, Mining/Minerals, Trade Statistics | Comments Closed

Sunshine needs new directions

Wednesday, August 1st, 2007

Joong Ang Daily
Jo Dong-ho
8/1/2007

The environment for economic relations between South and North Korea has changed.

In 1998, when the Sunshine Policy was started, South Korea’s national per capita income was $7,355, while North Korea’s stood at $573. At the time, South Korea’s export volume was $132.3 billion, and North Korea’s was $600 million. In a nutshell, South Korea’s national per capita income was 13 times higher and its export volume was 220 times bigger than North Korea’s.

Since then, South Korea’s national per capita income has rapidly increased, to $18,372 as of 2006. Meanwhile, according to an estimate by the Bank of Korea, North Korea’s national per capita income hovers at around $900.

South Korea’s exports are worth $325.6 billion, nearly triple 1998 numbers, but North Korea’s export volume is merely $900 million.

Accordingly, the gap between the two Koreas’ economies has widened. Now, South Korea’s national per capita income is 20 times higher than North Korea’s. South Korea’s export volume is 325 times larger than North Korea’s.

In particular, South Korea’s economy has developed and matured a great deal in terms of quality because it opened its doors more widely after the financial crisis 10 years ago.

But North Korea still cries out for an independent, self-sufficient economy, leading to a wider discrepancy in the economies of the South and North.

In the meantime, economic cooperation between South and North Korea has developed a great deal. In 1998, trade volume between South and North Korea was worth around $200 million. In 2006, it was more than $1.3 billion. Today, large-scale projects by both the private and the public sectors are in progress, something that was unthinkable back in 1998.

Examples of these are a building project at the Kaesong Industrial Complex and the government’s project for social overhead capital, such as railways and highways between the two Koreas. A variety of agreements have already been prepared, such as one protecting investments.

As a result, South Korea is North Korea’s largest export market, its second-largest trade partner and largest investor. South Korea also provides support and more assistance to North Korea than other countries.

The number of visitors to North Korea has increased as well. In 1988, 3,317 people went to North Korea, but last year more than 100,000 people visited there.

The reason why I included these lengthy statistics is to underscore the change in South and North Korea’s economies as wellas their economic relations.

In the past, South Koreans wanted to buy products made in North Korea out of curiosity, but now an item from North Korea is simply commonplace.

A small project involving North Korea made headlines in the past, but now many go unnoticed.

However, the Sunshine Policy, which has been in place since the Kim Dae-jung administration, has not changed at all.

The Sunshine Policy was aimed at inducing North Korea to change and expanding contact and exchange with North Korea was a means to achieve that goal.

That is why we did our utmost to cooperate economically with North Korea and to increase assistance to the country. As seen in statistics, these efforts have produced significant achievements on the outside.

But in the process, we became preoccupied with the means and forgot about the original goal of the policy. We continued economic cooperation with North Korea even though it carried out a nuclear test. We wanted a summit meeting with North Korea even though it meant we had to put a tremendous amount of money under the table. The Donghae line is not of much use because the railway does not run northbound from Gangneung. We connected it because North Korea wanted us to.

Maintaining contacts and exchange with North Korea has become the ultimate goal of the policy. Because of the Sunshine Policy, in which the means have become the goal, North Korea receives assistance even though it sticks to its old-fashioned ideology.

Thus, now we need to straighten out the means and the goal. The environment for economic relations between South and North Korea has changed. We can’t define the Sunshine Policy as either a failure or a success.

We have long since passed the stage where we have to pour all our efforts into the means, but we have not changed our direction to focus our energy and attention on a new goal. It is meaningless that presidential hopefuls discuss whether they will embrace or abolish the Sunshine Policy in its entirety.

In the past, starting economic relations with North Korea was the top priority even though it meant “shoveling aid across the border.” The time has come to steer the policy in the right direction.

Posted in GDP statistics, International trade, South Korea, Tourism, Trade Statistics | Comments Closed

North Korean Economy Watch