Anastasia Gorbacheva12:05, 04/28/24

It is noted that the economic situation in North Korea has begun to improve.

North Korean leader Kim Jong-un has declared his readiness for war, but his country faces a more prosaic task: building the promised factories. Pyongyang is trying to solve its economic problems at the expense of the Russian Federation.

The Financial Times writes that Kim Jong-un has set an ambitious plan to build a plant in each of the country’s 200 counties over the next 10 years. With many of North Korea’s existing factories already running at capacity, experts are skeptical that the chosen 20×10 regional development policy will bear fruit.

Friendship between Moscow and Pyongyang

It is noted that Kim’s ambitions and unusual willingness to outline specific indicators of success reflect growing self-confidence as a result of his “friendship” with Vladimir Putin.

“The war in Ukraine turned out to be a treasure trove for North Korea,” said Peter Ward, a fellow at the Sejong Institute think tank in Seoul. “After years of severe hardship for ordinary North Koreans during the coronavirus pandemic, Kim appears determined to use some of his windfall to raise living standards and expand his industrial base.”

Moscow vetoed the mandate of the UN commission to monitor compliance with sanctions against North Korea, effectively destroying the main pillar of the sanctions regime. In addition, Russian ports are used by sanctioned North Korean tankers for their oil and petroleum products, apparently as payment for artillery shells for the war against Ukraine.

In addition, cooperation between North Korea and Russia in the field of logistics intensified – new railway, ferry and road routes were discussed. According to North Korean state media, a North Korean delegation led by a senior agriculture official visited Russia.

Economy of North Korea

South Korean Defense Minister Shin Won-sik said that the economic situation in North Korea has “significantly improved” in recent months thanks to supplies of food, raw materials and petroleum products from the Russian Federation.

In 2023, the South Korean central bank estimated that North Korea’s economy would contract for the third year in a row in 2022, with real GDP at $24.64 billion, corresponding to an annual GDP per capita of $1,123, about 30 times smaller. than in South Korea.

The economy, which relies heavily on the production of coal, concrete and industrial plastics, is kept afloat by food, fuel and fertilizer from neighboring China.

State resources, replenished through smuggling and theft of cryptocurrencies, are directed to the army and Pyongyang, and provincial areas must take care of themselves. Ordinary North Koreans will survive through small-scale farming and small-scale market activities.

For now, Kim’s “20×10” plant initiative is off to a strong start. State media reported that 13 groundbreaking ceremonies took place over six days in March. According to Ward, Kim Jong-un will likely prioritize the production of paper, soap, processed food and clothing, which are traditionally imported from China. He also pointed out that “since many of the existing plants are already operating at the limit of their capacity, it is irrational to build another 200.”

Benjamin Katzeff Silberstein, an expert on the North Korean economy at the Swedish Institute of International Affairs, believes that Kim is trying to return to the patronage of the two countries, therefore he is strengthening his partnership with the Russian Federation and reducing dependence on China.

North Korea – latest news

A rogue country is looking for “friends” among totalitarian countries. At the moment, Beijing and Moscow are the closest to Pyongyang, on which it depends on many issues, including food. Kim Jong-un literally abandoned his population to the mercy of fate, focusing on the production of missiles with dubious characteristics .

At the same time, The Wall Street Journal wrote that over the past five years, the DPRK has developed new weapons designed to fight regional wars, and in January, Kim Jong-un abandoned the policy of reunification with South Korea and  set himself more aggressive goals .

(C)UNIAN 2024