North Korea Economy KDI Review of the North Korean Economy, April 2025 April 25, 2025

- Summary
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North Korea’s market prices, crucial for economic analysis, suffer credibility issues due to opaque data collection and unclear reporting, further exacerbated by sanctions and COVID-19. Advertising remains stagnant amid economic constraints and strict media control, though limited branding and promotional impacts have appeared in select products. Volatility in wholesale and retail prices increased significantly following pandemic-induced border closures and altered distribution structures, notably with expanded wholesale margins. Post-unification social security proposals suggest temporarily separate systems given inter-Korean economic disparities, with differentiated approaches for basic welfare and social insurance. Despite stalled inter-Korean exchanges, North Korea’s maritime and fisheries research continues accumulating essential data, underscoring the need for ongoing studies. Given changing international conditions, establishing road-centered multimodal logistics infrastructure is imperative for future inter-Korean transport. Lastly, despite ongoing disaster management and forest restoration efforts to mitigate climate risks, severe deforestation remains unresolved.
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