Economy
The Democratic People’s Republic of Korea
has a Soviet-style command economy based around heavy industry.
In addition
the country has rich mineral deposits, which include most of the
main base metals, as well as tungsten, silverand gold. Development resources have slowly
changed to light industry and latterly concentrated on automation and modernisation since the main industrial infrastructure
was developed during the 1950s.
Commerce is conducted with the Russian Federation,
China and Japan, where a wide range of joint industrial enterprises have been set up. These
measures have
only partly compensated, for the stern loss of commerce with the
former Soviet Union, which
hastened Korea (Dem Rep)’s
economic decline during the 1990s. Estimated at 4% per year, this
contraction has been compounded by a series of
extremely
severe floods. It is
obvious
that people in North Korea
have currently suffered from serious shortages and, in some areas, starvation,
even though
most evidence has little information and in the absence of complete
official details.
The people in North Korea have not taken political or economic reforms
on the scale seen in China, Eastern Europe and the Russian
Federation. China is
probably the most model; however, so far Korea (Dem Rep) has gone no further
than devaluing the won (a mostly artificial measure
since the won is not convertible) and cutting the
financial support
on some
fundamental
goods. Pyongyang has pinned its hopes on
a progress of relations with the South. There
is approximately 300 million of commerce between the 2 countries, conducted at present
through go-between's. During August 2003, an economic and trade
agreement was signed under which South Korean companies manufacture
goods and products in the North where labour costs are lower. A main difficulty
is political as Washington is still
antagonistic towards Korea (Dem Rep)’s
nuclear ambitions.
Business
Etiquette
Business Suits are generally required. Business transactions will widely take place
outside the office, normally during the evening, since visitors are
not allowed to go into offices.
Commercial
Information
The following organisation can provide advice:
The
DPRK Committee for the Promotion of External Economic Cooperation,
Jungsongdong,
Central District,
Pyongyang
Telephone number: (2) 381 6163
Fax number: (2) 381 4498). |
