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Democratic People’s Republic of Korea –from the Beginning of Kim Jong Un Era to the Fifth Plenary Meeting of the Seventh Central Committee of the Workers’ Party of Korea– (Summary)

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Policies That Attach Importance to Economy in the

Democratic People’s Republic of Korea –from the Beginning of Kim Jong Un Era to the Fifth Plenary Meeting of the Seventh Central Committee of the Workers’ Party of Korea– (Summary)

MIMURA Mitsuhiro

Senior Research Fellow, Research Division, ERINA

The o cial economic system of the Democratic eople s epublic of orea (hereinafter referred to as orth orea) is still a socialist planned economy premised on social ownership of means of production. However, the non-state sector has expanded since the mid- 199 s. In ovember 9, with the aim of restoring the socialist planned economic order, the authority closed the markets (ba aar) and banned the use of foreign currencies, and performed a currency exchange with a cash exchange limit, although it ended in failure. ince

1 , improving people s lives has been an indispensably important policy.

In the im Jong n era, economic reforms have been carefully carried out, with the “socialist corporate responsibility management system” formulated in August 1 and stipulated in the constitution in April 19. The time when this reform took place coincides with the time when orth orea deepened the conflict with the nited tates in developing nuclear weapons and weapons of mass destruction. The “byun in line”, first announced in March 1 , was progressively eliminated in April 1 into the policy of emphasi ing economic construction, but the conflict with the nited tates could not be solved, and the nation entered the “front breakthrough” at the end of December 19. However, economic construction is also emphasi ed as a main target here.

The most di cult part of orth orea s economic reforms how to deal with the guestions of ownership, or reforms on state-owned enterprises and improvement of the investment environment of the country is yet to come.

eywords economic policy, economic reform, ownership, nuclear development, labor-based distribution

J classification O , , 1,

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