Alternatives for Promoting North Korea's Economic Opening ..73 Kang-taeg Lim (Korea Institute for National Unification). Recent economic relations between Japan and North Korea ..121 Mitsuhiro Mimura (Economic Research Institute for Northeast Asia).
North Korea’s Economic Opening-Up Policies
Past Records and Future Prospects
Kyuryoon Kim
Ⅷ1. Introduction
- North Korean Efforts to Promote Western Investment
- Policy Environment
- Measures for Opening-up
- Reasons for Failure
- Reform Measures and the Enactment of the
Later, in the early 1970s, North Korea began implementing a foreign trade policy designed to increase exports and foreign exchange earnings. However, her plans were altered by North Korea's change of plans, which caused the global depression of the 1970s.
Habyoung Act’
Policy Conditions
Second, while North Korea actively pursued policies to increase foreign trade, North Korea took limited measures to increase foreign exchange earnings without reforming the domestic economy, so efficiency in production was impossible to achieve. Finally, the real reason these reform measures failed was because North Korea's economic development plans were overly concentrated on heavy industry, and the government continued to pursue its goal of creating a closed, independent economy by allowing only limited economic exchange with the outside world.
Contents of the ‘Habyoung Act’
- Attracting Investments Concentrated in the Najin and Sonbong Special Economic Zones
By the early 1990s, the North Korean economy was already on the brink of collapse, and the collapse of the socialist bloc further contributed to deteriorating economic conditions. A close analysis of the domestic conditions of the North Korean economy shows that at the end of the Cold War, North Korea tried to cope with this difficult situation.
Details of the Najin and Sonbong Special Economic Zone North Korea designated the Najin and Sonbong area as a spe-
Details of Najin and Sonbong Special Economic Zone. North Korea has designated the Najin and Sonbong area as a special zone. This is considered another reason for the collapse of the Najin and Sonbong Special Economic Zone.
Announced on July 1, 2002
Details of the ‘Measures to Improve Economic Management’
Not only the cost of production, but the international market conditions as well as the supply and demand of the domestic market were taken into account in the price of goods. In the case of the Shinuiju Special Administrative Region, the government initiated a new type of special economic zone that attempted to mimic the special economic zones of China such as Hong Kong and Shenzhen.
Evaluation and Outlook
- Conclusion
Although the strategy used by North Korea seems feasible at first, the lessons learned from the last 20 years show that this strategy will not contribute to the revival of the North Korean economy. Young-hoon Kim, "Expectations and Problems of the Agricultural Industry Regarding the Measures to Improve Economic Management Released on July 1, 2002," Studies on Problems of Unification, Vol.
South Korea’s Policies toward North Korea
Continuities and Changes
Han-bum Cho
Evaluating the North Korean ‘Peaceful Prosperity Policy’
Progress under the Six-Party Talks, such as “a peaceful solution to the North Korean nuclear problem through talks,” and “direct negotiations between North Korea and the US” were the basic ideas emphasized by the Roh government. Despite making the North Korean nuclear problem the first priority, the policy's credibility was damaged because the government failed to predict and prevent North Korea's nuclear tests.
North Korean Policies of the Lee Administration
Changes in the Environment Promoting North Korean Policies
The progress made in South Korean politics, economy and society in construction with the deterioration of North Korea's economic system should put an end to the ideological competition between the two Koreas. Ideological competition will end not only in the economic sphere, but also in all areas, including politics, society and culture.
From ‘National’ to ‘Rational’
However, the effects of globalization in South Korea have caused this kind of environment to change, and the election of President Lee Myung-bak, who has advocated strengthening the US-South Korea alliance, is evidence of this transformation. In the specific case of sending troops to help with the war in Iraq, South Korea was one of the countries that sent the largest number of troops outside of the United States and Great Britain.
The Transition from an Ideological to a Practical Paradigm The decline of nationalism and the increasing acceptance of
Therefore, the term "independence" promoted by the participatory government in connection with the nationalist discourse appears to be no more than mere political rhetoric. In accepting the request to participate in a US-led world order, it appears that the Roh administration decided to choose the "rational" option.
Weakening of the Discourse on Unification
- The Principles and Goals of the Lee Administration’s North Korean Policies
The circumstances under which the Lee administration is able to advance North Korea policies are essentially the same as those of the Roh administration. Based on this understanding, it is possible to outline the following policy goals of the Lee administration in North Korea.
Economic Relations between South and North Korea: Present Status and
Hyeong-jung Park
The Lee Administration’s Inter-Korean Economic Cooperation Model
The vision for the model of inter-Korean economic cooperation presented by the Lee administration is based on the goal of achieving the complete denuclearization of North Korea and establishing a possible economic relationship with a more open North Korea. Therefore, the possibilities for achieving inter-Korean cooperation will vary depending on the Lee administration's response to North Korea's progress on nuclear issues and certain economic conditions that prevent the realization of its vision for inter-Korean relations.
Major Issues
Furthermore, the government believes that the approach to negotiations with North Korea must change. On another note, the Lee administration has expressed its intention to provide humanitarian aid to North Korea under the principle of reciprocity.
Advantages and Disadvantages
- Scenarios for Inter-Korean Economic Cooperation During the Lee Administration
- Conclusion
According to the logic proposed by the Lee administration, the promotion of inter-Korean cooperation should be directly related to the denuclearization of North Korea and the implementation of open-door reform policies. Moreover, since North Korea declared that the Lee administration is a threat to the preservation of its system, inter-Korean economic cooperation has decreased significantly.
South Korea’s Economic Policies toward North Korea: Alternatives for Promoting
Kang-taeg Lim
- Paths for the Promotion of inter-Korean Economic Cooperation
- Key Points of North Korean Policy
- Strategies for Promotion
- Short Term Tasks
- Presenting Priorities for Governmental Policy
- Seeking New Models of Economic Cooperation
- Selection of Strategic Fields of Development
In the short term, emphasis should be placed on the pending economic issues of the two Koreas. In the long run, building a foundation for integration of the two economies should be prioritized.
Ⅷ4. Long Term Tasks: Strengthening Economic Cooperation
Promotion of Future Paths for Development
Contributing a larger amount of membership fees to international organizations and increasing cooperative projects and ODA to developing countries through international organizations are methods to achieve this goal. Moreover, more efforts should be made to become a member of the council of various organizations and to participate in the chairmanship of international committees.
Major Promotional Tasks
In relation to this goal, the government should enter into agreements with international organizations at the governmental level for the systematic training of experts. From this point of view, there will be a need for a concrete reorganization of the roles of the ministries or a new government promotion system will have to be established.
Economic Relations between China and North Korea
Current Status and Future Prospects
Zhe Jin
Present State of China-North Korea Economic Relations
As mentioned above, the economic relationship between China and North Korea has strategic value, especially when focusing on China's unique position in China's foreign economic relations. To be more specific, China's economic policy towards North Korea, provision of economic assistance to North Korea, China-North Korea trade and investment cooperation between the two states are all part of China-North Korea economic relations.
China’s Economic Policies for North Korea
Trade between China and North Korea began in the 1950s, and both maintained a barter trading system until 1991. The local government supports North Korea through sister relations with various regions in the north.
Commercial Relations between China and North Korea Commerce relations between China and North Korea started
Since February 21, 2008, Dandong's trade with North Korea has been paid in Chinese currency (yuan). Third, North Korean organizations or individuals can open a bank account in Yuan currency for the exclusive use of trade with North Korea in the territory of China.
Investment Cooperation between China and North Korea
- Prospects for the Future of the Economic Relationship between China and North Korea
Prospects for the future of the China-North Korea economic relationship between China and North Korea. Therefore, as China-North Korea relations improve, the importance of the economic relationship will be more emphasized over time.
The Limits for North Korean Economic Reform
There is room for possible growth in the economic relationship between China and North Korea, as North Korea is still developing and both countries are at an early stage in their economic relationship. China too has a strategic approach to its North Korean economic policy to maintain Chinese stability.
The Limits for Progress in North Korean Economic Development
The Limits of China and North Korea’s Unique Relationship
Although, this strategy will be the result of various factors, such as the change of the existing structure and the level of North Korea's economic cooperation with China, North Korea's bad feelings towards China should also be considered as a major factor.
The Limits for Resolving the North Korea Nuclear Problem
The purpose of the competition for economic cooperation with North Korea is to gain superiority in leadership and influence. China, North Korea and South Korea should build on the structure of economic cooperation that already exists.
Recent Economic Relations between Japan and North Korea
Mitsuhiro Mimura
North Korea-Japan Economic Relations after the Cold War
As seen in
The State of North Korea-Japan Economic Relations
Although Japan's trade balance with North Korea increased, the total volume of trade between North Korea and Japan showed no drastic changes around the end of the Cold War. A peculiar thing about the trade between North Korea and Japan is that the number of exports to North Korea exceeded imports from 1987 to 2006.
The History of North Korea-Japan Relations, Its Characteristics, and Significant Changes
There were many people in the conservative group who believed that the kidnapping was done by North Korea. There is little discussion of efforts to include the North Korean regime in the international community.
Increase in Negative Public Opinion of North Korea and the Call for a Policy Based on “Pressure”
North Korea showed a flexible attitude towards the abduction issue at the beginning, their attitude hardened later. Based on this perception, efforts have been made to pressure North Korea to change its position.
Substantial Economic Sanctions
The second phase consisted of establishing legislation that made it easier to impose sanctions on North Korea. This became one of the main reasons why trade between North Korea and Japan declined.
Legislation that Makes Exclusive Economic Sanctions Possible
Korea because their share of profits was not high enough to compensate for the losses caused by the implementation and enforcement of Catch All measures. According to the first paragraph of Article 3 of this law, "when it is considered necessary to ensure the peace and security of the country, the country may, by government decision, prohibit a certain ship from entering any home port for a certain period of time." time period.".
Exercising Japan’s Independent Economic Sanction Measures
Four Consecutive Extensions of Economic Sanctions In April and October of 2007, and again in April and October of
- The Influence of North Korea-Japan Economic Relations on North Korea
Japan stated that the reason it made the decision on October 10, 2008 to extend North Korea's economic sanctions was because no progress had been made in the reinvestigation of the abduction case, which was agreed to in August this year, and North Korea was showed signs of resuming its nuclear development program. The next day, on October 11, the US removed North Korea from its list of state sponsors of terrorism.
The Paralysed State of North Korea-Japan Economic Relations
The sanctions are being enforced over the kidnapping issue, which has become widely publicized in Japanese society following the North Korea-Japan summit in September, and the North Korean test of a nuclear device in October. When Japan subsequently independently imposed sanctions against the Kim Jong-il regime, trade between North Korea and Japan suffered a crushing blow.
The End of Human Interactions between North Korea- Japan
- The Change in North Korean Economy and North Korea-Japan Economic Relations
- The Prospect of North Korea-Japan Relations for the Next 5 Years and the Effect of Their Economic
The change in North Korean economy and North Korea-Japan economic relations Korea-Japan economic relations. Among Japanese companies, there really exist those who have tried joint ventures or contracted processing in North Korea.
How will North Korea-Japan Relations Unfold?
However, for this to happen, the government must have enough legitimacy to persuade the public to support the further development of Japan-North Korea relations. If North Korea proposes negotiations for the normalization of the relationship, it will be because they desperately need the economic benefits that would flow from normalization.
North Korea-Japan Normalization Summit and Japan’s Economic Cooperation with North Korea
This is because economic cooperation with North Korea has been established under the heading of 'mutual waiver of claims', a special relationship that helps the country atone for its past colonial rule. North Korea will have two aspects after normalization: one that compensates for past colonial rule and the other that provides assistance for private economic activities related to bilateral relations.
Possibility for Investment in North Korea by Japanese Private Corporations
Most Japanese companies do not have much contact with North Korea and only advance in North Korea if it is profitable. As seen above, there is little opportunity for Japanese companies to invest in North Korea.
Economic Relations between Russia and North Korea
Alexey Yu. Starichkov
Ⅷ1. Foreword
The entire basic volume of North Korea's export products was transported to Yuandong (China) and Siberia. However, this has created a serious debt imbalance that can be seen by looking at records of North Korea's foreign debt.
Ⅷ2. Trade Relations of North Korea and Russia
Russia’s Plans for Investment in North Korea
Commenting on the meaning of the project, Railway Minister Chun Kil-soo stated that its development stemmed from the North Korea-Russia Moscow Declaration in 2001 and that the intention is to create a large-scale mutual cooperation project for the peoples of the two countries. . North Korea has also been said to have high expectations for the facilitation of the free economic trade zone resulting from the launch of the current railway project.
Cooperation with North Korea in the Russian Far East
The terminal's first goal is to increase the current capacity of the terminal to 200,000 TEU per year. To promote trade and business in the economy, several agreements have been reached between the Maritime Province and the North Korean External Economy Commission.
Far Eastern National University and North Korea
Currently, the students of Far Eastern National University are conducting research at Kim Il-sung General University. Dean Kurilov of Far Eastern National University personally reached out to the North Korean leader in Pyongyang.
North Korea’s External Economic Relations
Past, Present, and Future
Assessments of North Korea's open-door reform policy and the surrounding political environment are fairly pessimistic from an international perspective. Second, based on this analysis, this paper will present a new model for engaging in international cooperation with North Korea.
Ⅷ2. North Korea’s Foreign Economic Relations
Development of International Cooperation for North Korea
Bilateral Cooperation
Plans to rebuild North Korea's railways and Najin port show that Russia is well aware of North Korea's strategic importance. Because of these obstacles, a resumption of economic cooperation between Japan and North Korea is unlikely to happen anytime soon.3.
Multilateral Cooperation
- New Solutions for International Cooperation with North Korea
In the past, North Korea has explored the possibility of joining international financial organizations such as the Asian Development Bank (ADB) and the World Bank (WB). It is a well-known fact that if North Korea wants to join these international financial organizations, the US must completely lift economic sanctions against North Korea.
