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North Korea ECONOMY
Character and Structure: Socialized, centralized,
planned, and primarily industrialized command economy. Principal
means of production owned by state through state-run enterprises
or cooperative farms. Prices, wages, trade, budget, and banking
under strict government control. Growth rate 1984-90 averaged
about 3 percent annually. Poor domestic economic performance;
gross national product (GNP) down 3.7 percent in 1990 and down
5.2 percent in 1991. Total 1991 GNP US$22.9 billion, or US$1,038
per capita. Withdrawal of Soviet aid in 1991 negatively affected
economy.
Agriculture, Forestry, and Fisheries: Traditional
source of employment and income but, under party rule, secondary
to industry. Completely collectivized by 1958. Estimated 18
percent land, agricultural use; approximately 25 percent GNP.
Principal crops: rice, corn, potatoes, soybeans, and pulses.
Largely self-sufficient in food production, but reported food
shortages. Growth in agriculture, forestry, and fisheries sector
2.8 percent in 1991; increase in rice and other crops offset
decrease in fish products.
Industry: Machine building, military products, electric
power, chemicals, mining, metallurgy, textiles, and food
processing. Manufacturing concentrates on heavy industry; ratio
of heavy to light industry in 1990 was 8:2. In 1991 oil imports
fell 25 percent; coal production, 6.5 percent; and electricity
generation, 5.2 percent. Shortages in oil, coal, and electricity
in 1991 led to idled plants and 13.4 percent decrease in
manufacturing output.
Labor: Labor force estimated at about 11.2 million in
mid-1990; approximately 33.5 percent agricultural, down from
about 43 percent agricultural in mid-1980. Shortage of skilled
and unskilled labor.
Currency and Exchange Rate: 1 wn = 100 chon. As of
December 1991, US$1 = 97.1 chon.
Foreign Trade: Major exports: minerals, metallurgical
products, agricultural products, and manufactures, for a total of
US$1.95 billion (free on board, 1989). Trade statistics according
to North Korean source: imports US$2.28 billion, exports US$1.24
billion, and deficit US$1.04 billion in 1991. Estimated 1991
trade decreased by approximately 25 percent, especially affected
by withdrawal of Soviet trade concessions beginning January 1991-
-almost 40 percent--but trade with China up about 17 percent and
increased trade with South Korea. Major imports: petroleum,
machinery and transport equipment, coking coal, and grain, for a
total of US$2.85 billion (free on board, 1989). Major trading
partners: Russia, China, and Japan; to a lesser degree, Hong
Kong, Germany, India, Canada, and Singapore. Trade with South
Korea classified as internal, not international; major hardcurrency source. Lack of foreign investors. Joint Venture Law
enacted in 1984, but few projects to mid-1993 and mostly
Ch'ochongryn (General Association of Korean Residents in Japan)
firms. Foreign investment, contractual joint venture, and foreign
enterprise laws enacted October 1992 to induce investment.
Data as of June 1993
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