contents go

KDI - Korea Development Institute

KDI - Korea Development Institute

SITEMAP

HOT ISSUE

North Korea Economy KDI Review of the North Korean Economy, January 2025 February 04, 2025

North Korea Economy

Monthly published paper on the current status of the North Korean Economy and major
issues on inter-Korean economic cooperation assisting academia, policy makers and corporate sectors to better understand North Korea

img
LanguageKOR
KDI Review of the North Korean Economy, January 2025
February. 04. 2025
Summary
The January issue assesses North Korea’s 2024 economy and outlook for 2025. Externally, North Korea strengthened economic cooperation with Russia, expanded trade with China, and sought to enhance its bargaining power with the U.S. Its deepening ties with Russia served as a strategic buffer, reinforcing its external policy stance. Domestically, the "20×10 Local Development Policy" aimed to reduce regional disparities but was hindered by fiscal constraints. Market instability persisted, while state intervention in distribution channels drove up prices, potentially escalating tensions between the state and market forces. As the Five-Year Plan concludes in 2025, production targets take priority, with large-scale output campaigns expected. The government is likely to declare the plan’s completion and announce a new strategy at the 9th Party Congress. Despite food production remaining at typical levels, capital shortages and tighter state control over food distribution could disrupt markets and fuel discontent. In 2025, North Korea will strengthen economic ties with Russia and China while resisting inter-Korean or U.S. negotiations without major concessions. Uncertainty will persist throughout 2025, with economic volatility, international sanctions, and exchange rate fluctuations shaping the country’s economic trajectory.
Join our Newsletter

World's Leading Think Tank, Korea Development Institute

Security code

We reject unauthorized collection of email addresses posted on our website by using email address collecting programs or other technical devices. To access the email address, please type in the characters exactly as they appear in the box below.

captcha
KDI Staff Information

Please enter the security code to prevent unauthorized information collection.

KDI Staff Information

Please check the contact information.

OK
KDI Staff Information

Please check the contact information.

OK