North Korea. Economy. Industry. Trade. Marshuk Daria, MA1
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1 North Korea. Economy. Industry. Trade. Marshuk Daria, MA1
2 GDP - $40 billion GDP real growth rate - 1% Central Intelligence Agency. GDP per capita $1 800 GDP composition, by sector of origin Agriculture (24,6%) Industry (42,8%) Services (32,6%) The World Factbook Key export-partners: China (76%), South Korea (16%) Export commodities: minerals, metallurgical products, machinery, textiles, agriculture Key import-partners: China (78%), South Korea (11%) Import commodities: petroleum, coking coal, machinery and equipment
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7 Country UN Comtrade Database Trade ($US million) Export China Congo 214 Thailand 183 Brazil 122 Russian Federation 103 Import China 583 Venezuela 212 India 167 Brazil 109 Thailand 34 Russian Federation 33 Country Trade ($US million) Export China India 239 Russian Federation 103 Thailand 99 Import China India 76 Brazil 68 Pakistan 43 Russian Federation BUT: In this database there is no up-to-date information on Japan- North Korea and North-Korea- South Korea trade. Data by Ministry of Unification (North Korea South Korea trade): 2007 ($US million) Export 765 Import ($US million) Export 615 Import 521
8 Export structure (2010) Raw materials (anthracite, rare-earth metals) 38% Machinery and equipment 15% Metals and metallurgy sector products 17% Textile (finished commodities) 13% Chemicals 4% Beverage and fishing products 4%
9 Import structure (2010) Raw materials (fuel resources) 30% Electronics 18% Textile (half-finished product:) 11% Food and beverage 9% Plastic and polymers 5% Chemicals (half-finished product) 6%
10 Analysis on North Korean trade by Institute francias des relations internationales (Ilfri) Import volume is much greater than export volume during the period ; North Korean international trade is highly dependent on South Korea and China; The structure of North Korean export has gone through dramatic change (proportion of electronic equipment increased in total export drastically); Proportion of energy, food and beverage still remains high in total imports -> emphasize on industry modernization and development; Economic cooperation between North Korea and China is expected to strengthen
11 Opened in 2004 Kaesong industrial complex Now there are 123 companies One of the main obstacles: U.S. economic sanctions against the North Korea, prohibiting imports of key technologies and goods.
12 North Korean products that might sneak past the US trade embargo Kaesong factories churn out components and parts that are used in South Korean-made products -> finished product is exported to the US under the Korean-American Free Trade Agreement. Korean car-makers Kia and Hyundai use parts made in North Korean industrial park; With a factory in Kaesong, Korean company Combase inc. produces carridges for use in printers made by Hewlett Packard, Xerox, etc. (Exports to USA through a Hong Kong reseller); One more Korean brand with factory in Kaesong Cuckoo, that produces topselling rice-cookers; Gin Gliders, a global leader in paragliding equipment also has a factory in Kaesong Products made in Kaesong might be shipped to he US through a third country like China or Singapore (those that do not have trade embargo)
13 The Yalu river trade Most of the year shallow and easily crossed => certain amount of cross-border trade is believed to exist (BUT: this trade is not reported in Chinese data) What do they sale: scrap metal; two-way trade of fresh fruits and vegetables (during the growing season); North Korea imports cell phones, contraband TV sets, etc.
14 Russia- North Korea economic cooperation Russia is interested in reducing tensions on Korean Peninsula => promotes trilateral (RF-DPRK-ROK) infrastructure projects: uniting the railroads in both Koreas with the Transiberian Railway; constructing gas pipelines and power lines from Primorye to South Korea through North Korea;
15 THANK YOU FOR YOUR ATTENTION!
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