According to the relatively new point of view, North Korea's economy is currently on the path of rapid marketization and society is changing quite rapidly. This study aims to expose the policies and current status of eight key areas of prominent changes in the DPRK economy and society under the Kim Jong Un era.
Market and Industry
General markets are widely regarded as the hub of trade and retail, two driving forces behind North Korea's marketing. Amid North Korea's economic recovery in the 2000s, the biggest concern was a slow recovery in production.
Enterprises and Labor
Fundamental flaws inherent in the planned economy have caused North Korea's economic downfall since the 1980s. Today, enterprises in the DPRK are not only struggling to operate normally, but also to cope with a range of tax and quasi-tax burdens.
Finance and Currency
For decades, North Korea had a single banking system, which had been ended with the integration of the Commercial Bank in 1976 into the Central Bank of the Democratic People's Republic of Korea. Formation and Development of the Private Financial System North Korea's private finance has evolved to add remittances to its offerings along with currency exchange and loans. In truth, however, it originates from an unofficial, private trade settlement system between North Korea and China.
Major DPRK wholesalers could now place their orders by phone without traveling across the North Korean-Chinese borders. In the early days of bilateral trade, North Korean suppliers mostly offered small and less valuable goods to Chinese customers until economic reforms in the 1980s raised living standards in China. Compared to the two, the North Korean-Chinese system is different in that the money passes through China and that remaining families in North Korea receive the money in a foreign currency instead of the local one.
The financial authority in North Korea assumes that a significant amount of currency is privately owned. A key goal of the Kim Jong Un regime is for the official state economy to absorb idle capital. Most notably, the Central Bank of the DPRK launched the Jonsong Card, an electronic card based on the local currency.
Science, Technology, and IT: North Korea’s
The Kim Jong Un regime's initiative, probably in recognition of international trends, is called the "Industrial Revolution of the New Century", which is a step towards the 4th Industrial Revolution. Currently, North Korea's industrial science and technology does not seem to be on the verge of the 4th industrial revolution. Rather, the industrial revolution of the new century aims to deepen the 3rd industrial revolution in which North Korea currently stands.
North Korea's Information Networks: Internet and Intranet The North Korean regime operates a state network to facilitate the flow of information. Around this time, home-made North Korean cell phones made their way onto the market. This made it possible to take a photo in North Korea and immediately post it on the Internet or set up a video call between North and South Koreans via Kakaotalk, a popular instant messaging app in South Korea.
In 2017, a variety of the latest devices and programs were showcased at the DRPK National Exhibition on Informatization Achievement, a state event. North Korea presented its facial recognition technology at the event, a step forward in character and voice recognition. Therefore, in a phase of active inter-Korean technological cooperation, North Korea's competitive advantage, if realized, could lie in software.
Education: Education Reform and Widening
Policy Orientation and Institutional Reform: Pursuing "all people well versed in science and technology" and achieving a global standard. In education policy, the Kim Jong Un regime has shown its commitment and orientation to reform early on. Under the new leader, education was emphasized as a critical means of "building a strong socialist civilized country." Key features of the new education policy under the young Kim include adoption.
In 2012, the first significant measures were taken under the new leadership: the reform of the compulsory school system and the extension of the period of compulsory education from 11 to 12 years. At the 7th Congress of the Workers' Party of Korea in May 2016, there was an initiative to "make all people well acquainted with science and technology". Under the leadership of the young leader, Pyeongyang sees that the level of development of science and technology can determine the strength of the country in the age of information industry and knowledge economy.
In this context, North Korea seeks to promote science and technology talents with a view to transforming itself into a "mighty socialist civilized state" and "economic powerhouse". Following the strategy, science and technology education, such as basic science course and computer training, has been strengthened across the education curricula, especially at high school level. Pyeongyang also declared an initiative to "make all people well-versed in science and technology" as a goal of its "educational revolution of the new century." For this purpose, it promotes IT-based education and distance learning. Nevertheless, the birth and spread of private education in the DPRK is certainly worthy of attention.
Class, Region, and Generations: Lifestyle
Data: Central Statistics Office of the DPR of Korea and UNPF, Democratic People's Republic of Korea: Socio-Economic, Demographic and Health Survey 2014 (Pyeongyang: Central Statistics Office, 2015), p. Data: Central Bureau of Statistics of DPR Korea and UNICEF, Multiple Indicator Survey of DPR Korea 2017, Survey Findings Report, p. The divisions between the rich and the poor are becoming more and more entrenched throughout the northern half of the Korean peninsula.
The driving forces behind wealth redistribution are capital, product movements, and the size and accessibility of marketplaces. The prosperity index, part of North Korea's 2017 UNICEF MICS, indicates that 60% of urban residents fall into the top 40% of the prosperity percentile, while only 8.8% of rural residents belong to the same group. Aiming to foster “the new generation” that will shape North Korea's future and become the guardian of the Kim Jong Un regime, the new education system emphasizes two subjects: English and science and technology.
This new generation of North Korea recognizes the power of the state and maintains its political ambition to be a member of the ruling party. They are highly aware of the latest modern technologies such as ICT and are exposed to South Korean popular culture by consuming cultural content from South Korea. The 2017 MICS report shows that teenagers are the age group most likely to use computers and the intranet, as a result of the new education system.
Gender and Reproduction: Shifting
The rise of the military-first (Songun) policy had given clear distinctions to the respective roles of men and women. After the formation of a market economy in the country, women have managed to pick up and hone skills for survival through their own struggle to make ends meet for the family. Women are actually the driving force behind the change taking place in the socialist state.
When a market economy emerged in the country after the economic crisis, the regime demanded a different role from women: "difficult and persistent mothers" who would protect the homeland. The development of trade and service activities has offered new dating ideas for young lovers in the DPRK. Also, respect for women is slowly spreading, thanks to the concepts of human rights and globalization that have been introduced to the country in the midst of digitization.
In terms of criteria for potential spouses, single men and women in the DPRK typically look at the other's financial capabilities, social class, and family and individual potential. In the past, people emphasized personality, family background (songbun) and academic background when searching for the future husband. In the 2014 survey, the average number of children was lowest among well-educated, wealthy married women living in Pyeongyang.
Culture and Trends: Path to Building Civilized State
Note: A scene from The Glorious Country, mass gymnastics performed on September 9, 2018 to commemorate the 70th anniversary of the founding of the North Korean regime. In a New Year's address announced on January 1, 2012, a year Kim Jong Un took power, he declared "the establishment of a socialist civilized state" as part of new state development goals. Since its "pilot performance" took place at the Mansudae Art Theater in July 2012, the group has become an icon symbolizing innovation and change of the Kim Jong Un era.
He demanded that North Koreans drive innovation and change by taking inspiration from the example of the Moranbong group. In February 2018, the Samjiyon Orchestra held a special performance to wish a success of the PyeongChang Winter Olympic and Paralympic Games. Following Kim's mandate to provide a civilized lifestyle befitting a new era by building more "contemporary cultural leisure facilities, parks and amusement parks", new leisure facilities are under construction in all corners of the country.
In 2016, Norwegian Jorn Andersen was appointed as the head coach of the North Korea men's national football team, in an attempt to take the country's elite football to a globally competent level. A more frank expression of individual desires is another hallmark of the Kim Jong Un era. Some of the results, Masikryong Ski Resort, Mirim Equestrian Club and Haedanghwa Building, became a symbol of changes in daily life under the young Kim.
Conclusion: Policy Implications
The South Korean government plans to begin inter-Korean economic cooperation once there is significant progress in Pyeongyang's denuclearization. In the past, South Korean companies participating in inter-Korean economic cooperation had a single window for communication, the Korean People's Economic Cooperation Commission of North Korea. In retrospect, inter-Korean economic cooperation could affect the North just as much, largely due to the heavy restrictions on direct communication between the South and the North.
Inter-Korean economic cooperation in science, technology and ICT can be significantly enhanced if it involves technology transfer based on military-civilian technology conversion. Taking this into account, the resumption of inter-Korean exchange and cooperation must break away from 2000s-style efforts centered on material aid. An ideal starting point for the resumption of inter-Korean exchange and cooperation would be an area far removed from politics and a priority in Pyeongyang.
This indicates a need to diversify the fields and participants of inter-Korean exchange and cooperation. Finally, the Kim regime seeks to promote inter-Korean exchange and cooperation with a soft agenda led by culture and art. Inter-Korean exchange and cooperation should be kept in mind with two principles, covering a myriad of fields.
