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foreign trade of Russia

Foreign trade of Russia with the DPRK (North Korea) in the 1st half of 2018

Prepared by the website Foreign Trade of Russia
based on data from the Federal Customs Service of Russia

Report on Russia's foreign trade with the DPRK (North Korea) in the first half of 2018: trade turnover, exports, imports, structure, goods, dynamics.

Trade between Russia and the DPRK (North Korea)

In the 1st half of 2018, trade between Russia and the DPRK (North Korea) amounted to USD 10,985,426, a decrease of 82.04% (USD 50,185,618) compared to the same period in 2017.

Russian exports to the DPRK (North Korea) in the 1st half of 2018 amounted to USD 10,081,548, a decrease of 83.00% (USD 49,237,201) compared to the same period in 2017.

Imports of Russia from the DPRK (North Korea) in the 1st half of 2018 amounted to USD 903,878, a decrease of 51.20% (USD 948,417) compared to the same period in 2017.

Trade balance of Russia with the DPRK (North Korea) in the 1st half of 2018 there was a positive in the amount of 9,177,670 US dollars. Compared to the same period in 2017, the positive balance decreased by 84.03% (USD 48,288,784).

Share of the DPRK (North Korea) in the foreign trade turnover of Russia in the 1st half of 2018 amounted to 0.0033% against 0.0228% in the same period in 2017. In terms of its share in Russian trade in the 1st half of 2018, North Korea (DPRK) took 148th place (in the 1st half of 2017 - 109th place).

Share of the DPRK (North Korea) in Russian exports in the 1st half of 2018 amounted to 0.0047% against 0.0355% in the same period in 2017. By share in russian exports in the 1st half of 2018, the DPRK (North Korea) took 132nd place (in the 1st half of 2017 - 92nd place).

Share of the DPRK (North Korea) in Russian imports in the 1st half of 2018 amounted to 0.0008% against 0.0018% in the same period in 2017. In terms of share in Russian imports in the 1st half of 2018, the DPRK (North Korea) took 139th place (in the 1st half of 2017 - 127th place).

Russian export to DPRK (North Korea)

In the structure of Russian exports to the DPRK (North Korea) in the 1st half of 2018 (and in the 1st half of 2017), the main share of supplies fell on the following types of goods:

Mineral products (TN VED codes 25-27) - 63.27% of the total volume of Russian exports to the DPRK (North Korea) (in the 1st half of 2017 - 86.23%);
Food products and agricultural raw materials (TN VED codes 01-24) - 28.25% of the total volume of Russian exports to the DPRK (North Korea) (in the 1st half of 2017 - 9.85%);
Products chemical industry (TN VED codes 28-40) - 6.94% of the total volume of Russian exports to the DPRK (North Korea) (in the 1st half of 2017 - 0.58%);
Metals and metal products (TN VED codes 72-83) - 1.37% of the total volume of Russian exports to the DPRK (North Korea) (in the 1st half of 2017 - 1.63%);
Machinery, equipment and vehicles (TN VED codes 84-90) - 0.15% of the total volume of Russian exports to the DPRK (North Korea) (in the 1st half of 2017 - 1.25%).

The largest increase in Russian exports to the DPRK (North Korea) in the 1st half of 2018 compared to the 1st half of 2017 was recorded for the following product groups:

Pharmaceutical products (TN VED code 30) - an increase of USD 524,900;
Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes (nomenclature of goods subject to foreign trade code 15) - an increase of USD 223,890;
Oil seeds and fruits; other seeds, fruits and grains; medicinal plants and plants for technical purposes; straw and fodder (nomenclature of goods subject to foreign trade code 12) - an increase of USD 172,751;
Articles made of ferrous metals (TN VED code 73) - an increase of USD 116,231.

The largest reduction in Russian exports to the DPRK (North Korea) in the 1st half of 2018 compared to the 1st half of 2017 was recorded for the following product groups:

Mineral fuel, oil and products of their distillation; bituminous substances; mineral waxes (nomenclature of goods subject to foreign trade code 27) - reduction by USD 44 653 533;
Fish and crustaceans, molluscs and other aquatic invertebrates (TN VED code 03) - a reduction of US $ 2,327,000;
Ferrous metals (TN VED code 72) - a reduction of USD 929,898;
Products of the flour and cereals industry; malt; starches; inulin; wheat gluten (nomenclature of goods subject to foreign trade code 11) - a reduction of $ 780,876;
Nuclear reactors, boilers, equipment and mechanical devices; their parts (TN VED code 84) - reduction by USD 373,921;
Means of ground transport, except for railway or tram rolling stock, and their parts and accessories (TN VED code 87) - a reduction of USD 222,501;
Wood and wood products; charcoal (nomenclature of goods subject to foreign trade code 44) - a reduction of USD 199,795;
Cereals (TN VED code 10) - USD 158,366 reduction;
Electrical machinery and equipment, their parts; sound recording and reproducing equipment, equipment for recording and reproducing television images and sound, their parts and accessories (TN VED code 85) - a reduction of US $ 123,644;
Salt; sulfur; earth and stone; plastering materials, lime and cement (nomenclature of goods subject to foreign trade code 25) - a reduction of USD 120,984;
Fertilizers (TN VED code 31) - a reduction of USD 94,050;
Alcoholic and non-alcoholic drinks and vinegar (nomenclature of goods subject to foreign trade code 22) - a reduction of US $ 67,828;
Rubber, rubber and articles thereof (TN VED code 40) - a reduction of USD 41,620;
Sugar and confectionery from sugar (TN VED code 17) - a reduction of USD 31,322.

Russian exports to the DPRK (North Korea) in the 1st half of 2018 by commodity groups

The code TN VED	Product group name	Export in 1 half. 2018, uS dollars	Share in total exports, %	Export in 1 half. 2017, uS dollars	Changes in 1st floor Oct 2018 relatively 1st floor 2017, %
02	Meat and edible meat offal	70	0,00	0	∞
03	Fish and crustaceans, molluscs and other aquatic invertebrates	0	0,00	2 327 000	-100,00
04	Milk products; bird eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0	0,00	16 440	-100,00
09	Coffee, tea, mate, or Paraguayan tea, and spices	4	0,00	0	∞
10	Cereals	25 432	0,25	183 798	-86,16
11	Products of the flour and cereals industry; malt; starches; inulin; wheat gluten	921 471	9,14	1 702 347	-45,87
12	Oil seeds and fruits; other seeds, fruits and grains; medicinal plants and plants for technical purposes; straw and fodder	183 251	1,82	10 500	1 645,25
15	Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	1 658 117	16,45	1 434 227	15,61
17	Sugar and sugar confectionery	49 988	0,50	81 310	-38,52
21	Various food products	8 928	0,09	17 874	-50,05
22	Alcoholic and non-alcoholic drinks and vinegar	261	0,00	68 089	-99,62
24	Tobacco and manufactured tobacco substitutes	131	0,00	0	∞
25		80 592	0,80	201 576	-60,02
27	Mineral fuel, oil and products of their distillation; bituminous substances; mineral waxes	6 298 189	62,47	50 951 722	-87,64
28	Inorganic chemistry products; inorganic or organic compounds of precious metals, rare earth metals, radioactive elements or isotopes	0	0,00	207	-100,00
29	Organic chemical compounds	0	0,00	14 318	-100,00
30	Pharmaceutical products	643 773	6,39	118 873	441,56
31	Fertilizers	0	0,00	94 050	-100,00
32	Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other dyes; paints and varnishes; putties and other mastics; printing paint, ink, ink	0	0,00	1 322	-100,00
34	Soaps, organic surfactants, detergents, lubricants, artificial and prepared waxes, cleaning or polishing compounds, candles and the like, modeling pastes, plasticine, "dental wax" and gypsum-based dental preparations	18 984	0,19	42 055	-54,86
38	Other chemical products	2 438	0,02	10 116	-75,90
39		24 239	0,24	13 036	85,94
40		10 712	0,11	52 332	-79,53
42		0	0,00	202	-100,00
44	Wood and wood products; charcoal	0	0,00	199 795	-100,00
48	Paper and cardboard; articles made of paper pulp, paper or cardboard	0	0,00	17 654	-100,00
52	Cotton	0	0,00	540	-100,00
54	Chemical threads; flat and similar threads of chemical textile materials	0	0,00	3 174	-100,00
59		0	0,00	5 728	-100,00
62		2 119	0,02	4 001	-47,04
63		0	0,00	10 993	-100,00
64		0	0,00	3 967	-100,00
65	Hats and parts thereof	0	0,00	193	-100,00
68		0	0,00	2 549	-100,00
70	Glass and glassware	0	0,00	3 195	-100,00
72	Black metals	21	0,00	929 919	-100,00
73	Ferrous metal products	137 468	1,36	21 237	547,30
74	Copper and articles thereof	202	0,00	13 132	-98,46
76	Aluminum and articles thereof	0	0,00	38	-100,00
82		0	0,00	1 024	-100,00
83	Other articles of base metal	0	0,00	2 180	-100,00
84		5 000	0,05	378 921	-98,68
85		0	0,00	123 644	-100,00
86	Railway locomotives or motorized tramway cars, rolling stock and parts thereof; track equipment and devices for railways or tram tracks and parts thereof; mechanical (including electromechanical) signaling equipment of all kinds	0	0,00	7 081	-100,00
87		0	0,00	222 501	-100,00
90		10 158	0,10	8 895	14,20
94	Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furniture; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated plates with a name or title or address and similar products; prefabricated building structures	0	0,00	15 103	-100,00
96	Miscellaneous finished products	0	0,00	1 891	-100,00

Imports of Russia from DPRK (North Korea)

In the structure of Russian imports from the DPRK (North Korea) in the 1st half of 2018 (and in the 1st half of 2017), the main share of supplies fell on the following types of goods:

Chemical industry products (TN VED codes 28-40) - 19.68% of the total volume of Russian imports from the DPRK (North Korea) (in the 1st half of 2017 - 31.01%);
Machinery, equipment and vehicles (TN VED codes 84-90) - 14.32% of the total volume of Russian imports from the DPRK (North Korea) (in the first half of 2017 - 10.72%);
Metals and metal products (TN VED codes 72-83) - 0.85% of the total volume of Russian imports from the DPRK (North Korea) (in the 1st half of 2017 - 19.78%);
Textiles and footwear (TN VED codes 50-67) - 0.70% of the total volume of Russian imports from the DPRK (North Korea) (in the 1st half of 2017 - 22.39%).

The largest increase in Russian imports from the DPRK (North Korea) in the 1st half of 2018 compared to the 1st half of 2017 was recorded for the following product groups:

Musical instruments; their parts and accessories (nomenclature of goods subject to foreign trade code 92) - an increase of USD 297,685;
Plastics and plastic products (HS code 39) - an increase of USD 9,052.

The largest reduction in Russian imports from the DPRK (North Korea) in the 1st half of 2018 compared to the 1st half of 2017 was recorded for the following product groups:

Articles of apparel and clothing accessories, other than knitted or crocheted (TN VED code 62) - USD 371,554 reduction;
Other chemical products (TN VED code 38) - USD 358,061 reduction;
Articles made of ferrous metals (TN VED code 73) - a reduction of $ 189,475;
Ferrous metals (TN VED code 72) - a reduction of $ 164,335;
Essential oils and resinoids; perfumery, cosmetic or toilet products (TN VED code 33) - a reduction of $ 46,767;
Articles of clothing and clothing accessories, knitted or crocheted (HS code 61) - a reduction of USD 35,059;
Means of ground transport, except for railway or tram rolling stock, and their parts and accessories (TN VED code 87) - reduction by USD 29,679;
Electrical machinery and equipment, their parts; sound recording and reproducing equipment, equipment for recording and reproducing television images and sound, their parts and accessories (TN VED code 85) - a reduction of $ 24,471;
Nuclear reactors, boilers, equipment and mechanical devices; their parts (TN VED code 84) - reduction by 12,152 US dollars;
Salt; sulfur; earth and stone; plastering materials, lime and cement (nomenclature of goods subject to foreign trade code 25) - a reduction of US $ 8,265;
Nickel and nickel products (TN VED code 75) - reduction by USD 3,676;
Products made of stone, plaster, cement, asbestos, mica or similar materials (HS code 68) - a reduction of USD 3,097;
Optical, photographic, cinematographic, measuring, control, precision, medical or surgical instruments and apparatus; their parts and accessories (nomenclature of goods subject to foreign trade code 90) - reduction by USD 2,826.

Imports of Russia from the DPRK (North Korea) in the 1st half of 2018 by commodity groups

The code TN VED	Product group name	Import in 1 half. 2018, uS dollars	Share in total imports, %	Import in 1 half. 2017, uS dollars	Changes in 1st floor Oct 2018 relatively 1st floor 2017, %
25	Salt; sulfur; earth and stone; plastering materials, lime and cement	0	0,00	8 265	-100,00
33	Essential oils and resinoids; perfumery, cosmetic or toilet products	445	0,05	47 212	-99,06
35	Protein substances; modified starches; adhesives; enzymes	4 200	0,46	4 809	-12,66
37	Photo and film goods	0	0,00	62	-100,00
38	Other chemical products	0	0,00	358 061	-100,00
39	Plastics and articles thereof	173 048	19,15	163 996	5,52
40	Rubber, rubber and articles thereof	197	0,02	341	-42,23
42	Leather products; saddlery and harness; travel accessories, handbags and similar items; products from animal intestines (except silkworm fibroin fiber)	426	0,05	183	132,79
55	Chemical fibers	1 527	0,17	0	∞
56	Wadding, felt or felt and nonwovens; special yarn; twines, ropes, ropes and cables and articles thereof	0	0,00	237	-100,00
59	Textiles, impregnated, coated or laminated; textiles for technical use	0	0,00	7	-100,00
60	Knitted or crocheted fabrics	0	0,00	1 613	-100,00
61	Articles of apparel and clothing accessories, knitted or crocheted	4 549	0,50	39 608	-88,51
62	Articles of apparel and clothing accessories, not knitted or crocheted	0	0,00	371 554	-100,00
63	Other made-up textile articles; sets; used clothing and textiles; rags	244	0,03	585	-58,29
64	Footwear, gaiters and the like; their details	0	0,00	1 207	-100,00
68	Articles of stone, plaster, cement, asbestos, mica or similar materials	0	0,00	3 097	-100,00
69	Ceramic products	49	0,01	310	-84,19
72	Black metals	3 618	0,40	167 953	-97,85
73	Ferrous metal products	4 089	0,45	193 564	-97,89
74	Copper and articles thereof	0	0,00	70	-100,00
75	Nickel and articles thereof	0	0,00	3 676	-100,00
82	Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0	0,00	1 033	-100,00
84	Nuclear reactors, boilers, equipment and mechanical devices; their parts	1 348	0,15	13 500	-90,01
85	Electrical machinery and equipment, their parts; sound recording and reproducing equipment, equipment for recording and reproducing television images and sound, their parts and accessories	25 041	2,77	49 512	-49,42
87	Means of land transport, other than railway or tram rolling stock, and their parts and accessories	102 292	11,32	131 971	-22,49
90	Optical, photographic, cinematographic, measuring, control, precision, medical or surgical instruments and apparatus; parts and accessories	744	0,08	3 570	-79,16
92	Musical instruments; parts and accessories	581 376	64,32	283 691	104,93
95	Toys, games and sports equipment; parts and accessories	313	0,03	1 778	-82,40
96	Miscellaneous finished products	372	0,04	830	-55,18

Russian foreign trade statistics
Federal customs Service Of Russia

Due to natural conditions and lack of arable land [ ], as well as the policy of the country's leadership, the DPRK is experiencing a significant food shortage, but not hunger, which, according to some experts, has not been in the DPRK since the early 2000s.

GDP per capita . The researchers cite the Juche policy and the excessive militarization of the country as the reason for the economic underdevelopment.

History

GDP

The DPRK belongs to some of the poorest countries in the world, ranking 213rd out of 230 in terms of GDP per capita. According to the CIA, the DPRK's GDP at purchasing power parity is the equivalent of $ 40 billion, or $ 1,700 per capita.

GDP by industry is distributed as follows [ ] :

Work force

Workers from the DPRK in Russia

Forced labor in camps

Sectors of the economy

Private sector of the economy

As noted by the Korean scholar A. Lankov, the private sector of the economy, according to various estimates, accounts for 30 to 50% of the DPRK's GDP, and its role in last years growing rapidly. Private capital is most widespread in the service sector, transport and fishing.

Officially, the government of the DPRK does not recognize the existence of the private sector, but in practice the authorities are tolerant of its activities.

Finance

Currency

Budget

total amount state budget not officially disclosed. For the media, only the distribution of costs in percent for various industries is announced. According to the data, the share of defense spending of the DPRK relative to GDP is 43% (about $ 7.7 billion, according to information for 2007).

According to the Stockholm Peace Research Institute, the DPRK's military spending in 2011 was 90 billion won.

According to the agency TsTAK (DPRK), in the budget for 2013, expenses were distributed as follows:

Development of the national economy, including agriculture - 45.2% social spending (including health, education, culture and sports) - 38.8% national defense - 16%

In the 2014 budget, the following changes in expenditures are planned:

Agriculture (including fishing) - an increase of 5.1%; on capital construction - by 4.3%; for science and technology - by 3.6%; on the sphere of heavy and light industry and the vanguard branches of the national economy - by 5.2%; education - by 5.6%; for healthcare - by 2.2%; for culture - by 1.3%; for social insurance and social security - by 1.4%; for sports - by 17.1%; defense spending will remain virtually unchanged at 15.9%.

There are also plans to fund scholarships and study expenses for Korean children in Japan.

It is known that the DPRK has accounts abroad. On June 15, 2007, the US confirmed the transfer of money from North Korean accounts from a bank in Macau to a Russian bank. According to the Japanese broadcaster NHK, a spokesman for the US administration said that the transfer of more than $ 20 million was made through the US Federal Reserve System and the Russian Central Bank. The funds were transferred to Dalcombank in Khabarovsk.

Counterfeiting charges

The US has repeatedly accused North Korea of \u200b\u200bproducing and selling counterfeit US dollars. Back in 1995, the son-in-law of North Korean Prime Minister Kang Moon To who fled to the West said that the DPRK annually prints from 8 to 19 million counterfeit US dollars and sends them to China and the Middle East by diplomatic mail, where this money is put into circulation. In a statement from the US Department of Justice (2005), “the high quality counterfeit bills that began to appear in the world circulation since 1989 were produced in the DPRK with the assistance of local authorities. Counterfeits were spread all over the world by persons acting under the guise of Pyongyang officials. " According to the US government, the DPRK began counterfeiting dollars in 1989 and by 2006 managed to print banknotes totaling $ 50 million. (According to some sources (for 2005), Pyongyang earned about $ 250 million a year from the sale of counterfeit American currency. According to The Guardian, in 2003 North Korea produces 500 million counterfeit dollars annually. high Quality.). The DPRK leadership denied these allegations. In 2008, a batch of $ 100 bogus worth about $ 1 million was seized in South Korea. In 2010, the widespread distribution of counterfeit $ 100 bills was noted in the border regions of the DPRK and China. Andrey Lankov, in his 2001 article, pointed out: “In recent years, the DPRK special services have begun to actively engage in illegal economic activity. North Koreans produce high-quality counterfeit dollars, which are then sold through the countries of Southeast Asia ... such transactions are an important source of currency for the DPRK.

Foreign economic relations

Foreign economic relations in the DPRK are governed by the Law on Joint Ventures (1984), the Law on Foreign Investment - (1992), the Law on Foreign Economic Agreements, the Law on Land Lease and other regulations. In 1991, the first Special Economic Zone (SEZ) was created. ... To create joint ventures, foreign investors can receive land plots on lease to their enterprises for a period of up to 50 years. The DPRK maintains trade relations with more than 100 countries. The volume of trade in 2008 amounted to $ 2.8 billion. The DPRK's key trading partner is China, which accounts for most of both the country's exports and imports.

While maintaining the undisputed dominance of China, the North Korean market is also being mastered by European entrepreneurs. Row foreign companiesdoing business in the DPRK are united in the European Businesses Association (EBA) in Pyongyang.

Twice a year, Pyongyang hosts International trade fairs with the participation of European and other enterprises

In recent years, there has been a steady growth in the DPRK's exports and imports. From 1999 to 2011, the export of goods from the DPRK increased 6 times, and imports - 4 times. In 2013 alone, imports of crude oil from China to the DPRK increased by 11.2% and amounted to 578 thousand tons. In general, the trade turnover between the DPRK and China increased in 2013 by 8.9%, amounting to $ 6.54 billion. At the same time, the export of North Korean goods to China increased by 18% and amounted to $ 2.91 billion.

The volume of international aid is gradually decreasing as the food situation in the DPRK normalizes. In 2011, aid from the International Food Program amounted to about 46,000 tons, with a total consumption of rice alone about 5-6 million tons.

Economic ties with South Korea

In post-war history, economic ties between North and South Korea have been weakened and then re-established. At the beginning of the 21st century, relations between the countries warmed, which led to a significant increase in investment by South Korean firms in North Korean industry. However, despite this, economic ties between the two countries are still rather weak.

After the South Korean government allowed trade with its northern neighbor, North Korean goods began to be imported into South Korea. Direct trade between the countries began after 1990 (this was preceded by a meeting of the prime ministers of both countries). The volume of trade between the countries increased from $ 18.8 million to $ 333.4 million.

However, in 2010, after a series of military incidents, and especially the shelling of the South Korean island by the DPRK's artillery, economic cooperation was practically terminated.

Export

According to "Vesti. Economy ", the volume of exports of goods amounted to 3160.74 million US dollars (2007), 4305.4 million US dollars (2008), 3993.05 (2009), 3623.35 (2010), 3789.24 (2011), 4203.12 (2012), 4368.01 (2013), 4051.64 (2014), 3434.66 (2015)

The DPRK's exports are dominated by seafood - 24.4% of the total export; products textile industry - 21.6%; machinery, equipment, electrical engineering - 15.1%; metals - 9.3%; minerals - 7.8%; chemical industry products - 6%. The main export items from the DPRK are also anthracite, seafood (in terms of catch of fish and other seafood, the country is in the top twenty in the world), ginseng and other traditional medicines. On the foreign market, DPRK weapons are known, which, as a rule, are the creative development of Soviet or Chinese models. The products of the DPRK military-industrial complex are in demand in the countries of the Third World, which, as a rule, are also under embargo, thanks to which the country remains one of the world exporters of weapons.

Major trading partners: 60%, Brazil 6.2%, Netherlands 4.3%, Egypt 3.5% (2010)

Import

The volume of imports of goods - 4.8 billion US dollars (2011).

One of the permanent partners of the DPRK in the CIS is the Republic of Belarus, from which Korea buys tractors, trucks, and accessories for them. In turn, for their production Belarus uses batteries imported from the DPRK.

Major trading partners: 81%, Egypt 9.6%, 1.1%, Dominican Republic 1.1%, 0.8% (2010).

External debt

External debt - $ 12.5 billion (2001).

The state debt to the USSR amounted to 11 billion dollars, more than 90% of the debt Russia wrote off.

Impact of sanctions and economic blockade

North Korean goods may not be imported into the United States directly or indirectly without prior notice and approval from the Office of Foreign Assets Control (OFAC) of the US Treasury Department. In May 2006, OFAC banned US citizens from "owning, leasing, operating, or insuring any vessel flying the North Korean flag."

The European humanitarian organization European Union program support (EUPS), leading charitable projects in the DPRK, at one time could not supply solar panels intended for power supply of hospitals in rural areas of the DPRK - they also fell under sanctions.

There are known cases of US attempts to seize North Korea's assets "on suspicion of money laundering." For example, in 2007, $ 25 million was arrested in a Macau bank, which were returned to Korea only after the threat of withdrawal from the Six-Party Talks and the intervention of the Chinese and Russian Foreign Ministries. Since 2002, the DPRK has abandoned the dollar and its official foreign trade currency is the euro. In the fall of 2012, the media published the words of the Deputy Minister of Foreign Trade of the DPRK Su Kir Bok about intentions to start using the Russian ruble and the Chinese yuan in foreign trade settlements.

The closest neighbors of the DPRK are Japan and South Korea prohibit shipments to the country of goods such as shampoo and used pianos for music schoolsdeclaring them "luxury goods". The category of "luxury goods" also includes cars, audio and video equipment, alcohol, coffee, cosmetics, beef and fish of the highest grades. Since 2006, there has been a ban on the import of any goods from the DPRK into Japan and the entry of ships flying the DPRK flag into Japanese ports

It is prohibited to import into the country used computers as “goods dual-use"That can be used to create nuclear weapons.

Population income

For 2017 minimum size wages averaged 5,000 - 10,000 won per day, which is an average of $ 5.5 - $ 11.1 per day.

Bibliography

Reese D. The prospects for North Korea’s survival, London, International Institute for Strategic Studies, 1998, 95 pp.

Notes

Notes Footnotes

CNBC North Korea "s 2016 economic growth climbs to 17-year high despite sanctions targeting nuclear program (unspecified) (July 20, 2017).
North korea (English). CIA World Factbook. 26 April 2010. Date of treatment January 9, 2012.
North Korea's economy grew 3.7% in 2017, Pyongyang professor estimates (English). www.japantimes.co.jp... The Japan Times.13 October 2017.
Kang Chang Ku. DPRK Economy 2016 (English). www.nkeconwatch.com... The Bank of Korea (2017-7-22).
Kim Hwa Yong. DPRK Economy 2015 (English). www.nkeconwatch.com... The Bank of Korea (2016-7-22).
Kim Young Hwan. DPRK Economy 2014 (English). www.nkeconwatch.com... The Bank of Korea (2015-7-22).
North korea (unspecified) ... The Observatory of Economic Complexity (2015). Date of treatment May 4, 2018.
N. Korea Struggling Under Mountains of Foreign Debt (unspecified) ... The Chosun Ilbo (English Edition): Daily News from Korea (January 19, 2012). Retrieved March 31, 2012. Archived February 21, 2012.
Lankov A.N. Natural death of Korean Stalinism // Polit.ru, 22.02.
The state of the economy of the Democratic People's Republic of Korea // Cultural catalog of the Faculty of International Business of OmSU
UN: North Korea "s policies cause the nation" s food shortages - The National (English). thenational.ae. Retrieved September 28, 2012. Archived October 23, 2012.
- Kiryanov O. James Morris: data on millions of victims of famine in the DPRK do not correspond to reality // Seoul Bulletin, 22.09.2005
- EUPS: there is no hunger and poverty in North Korea // Gazeta.ru, 05.04.2010
- Lankov A. N. Andrey Lankov Is North Korea Starving? On North Korean economic growth // Slon.ru, 04/29/2011
- Lankov A. N. did not win, but lost, and not the Volga, but a bicycle // Live Journal, 12.01.2013
- UN: Hunger in the DPRK is an invention // NEWSru.com, 14.05.2013
“The world factbook. Country Comparison "
Harris B. How North Korea is Transitioning to Capitalism // Vedomosti, 06/30/2017 (translated from the Financial Times)
Lankov A. Commerce under Kim Il Sung (unspecified) ... Polit.ru (August 9, 2014). Retrieved 19 August 2014.
Mozzhukhin A. "North Korea is no longer a reserve of Stalinism" // Lenta.ru, 11.03.2015
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For the 50,000 North Korean workers who worked in Kaesong, the zone closure was a blow. Although conservative human rights defenders have often referred to the Kaesong area as a "hard labor camp," such claims are notoriously hypocritical. Salaries in Kaesong are really small by the standards of the developed world: average salary there was $ 150 a month, and more than half of this amount was withdrawn as state revenue. Still, $ 50-70 is pretty good by North Korean standards, so the work zones had every reason to believe they were extremely lucky. Now their luck is over.

However, there is still hope. According to Kaesong, rumors persist that in the near future the deserted enterprises will be transferred to North Korean private entrepreneurs who will try to establish production there using abandoned South Korean equipment.

Although the very phrase "North Korean entrepreneur" may sound strange, in reality, private business has existed (and even thrives) in the Juche country for about two decades. There were times when the DPRK was an almost pure example of a total state economy, but these times are in the past. During the crisis and famine of 1996-1999, the state lost both the opportunity and the desire to fight the private economy, which began to grow slowly.

Initially, North Korean entrepreneurs were engaged in small business: they traded in the markets, founded artisan workshops for the production of consumer goods, smuggled with China. Over time, fairly large private enterprises began to appear in North Korea. In some cases, private investors began to take over state-owned enterprises, which stopped operating during the crisis, in the mid and late 1990s.

North Korean stalls

At the same time, the attitude of the authorities to what was happening remained extremely contradictory. On the one hand, by 2000, private business had become an important element of the economy. It was he who played an important role in the fact that the crisis was eventually overcome, and from about 2002-2003, the DPRK's economy began to grow again, although not too quickly. On the other hand, the country's leadership under Kim Jong Il perceived private business as something fundamentally wrong or, at best, as a temporary phenomenon that has to be tolerated in times of crisis. Under Kim Jong Il, campaigns against private business were carried out from time to time, which, however, ended in nothing.

With the coming of power of Kim Jong-un in December 2011, the situation changed. For all his hot temper and eccentricity, the new North Korean ruler has a very positive attitude towards private business, so after 2012, the North Korean authorities on the ground received unequivocal instructions to no longer interfere in the affairs of private entrepreneurs and merchants.

However, this does not change the fact that from a formal point of view, private business remains completely illegal. Despite the fact that now in North Korea in private hands are almost all catering and retail, a significant part of intercity road transport, as well as a number of small and medium-sized enterprises in the food and light industry, it is strictly forbidden to mention this in the official press (and there is no other in the country).

Small workshops and stalls dispense with formalities, while larger private businesses such as restaurants are formally registered as state property... At the same time, a significant part of what is happening at these enterprises, from a formal point of view, is a blatant violation of the law and theft of socialist property, so that not only prosperity, but also the survival of entrepreneurs depends on the goodwill of local officials, which can be bought, and the current position of the top manual that is not for sale.

Nevertheless, it was the closure of the Kaesong zone that raised a lot of hope among entrepreneurs. Seoul's measures have left more than a hundred businesses with first-class North Korean equipment and well-trained personnel abandoned, and North Korean businesses are now actively working to gain access to these sudden opportunities. Of course, the shop workers will, as always, operate under the formal roof of state institutions. There is no doubt that if he succeeds, the "closed" zone will continue to operate - perhaps with less efficiency than before, but perhaps with greater benefit for most North Koreans.

North Korea is today one of the most totalitarian countries in the world. But it turns out that this closed state has a lot of export items, and very unusual ones.

1. Coal

As everyone knows, China is the world's largest coal importer. But where does the Celestial Empire get millions of tons of this fuel from? It turns out that North Korea has recently become China's main supplier. Despite the overall drop in China's imports, supplies from North Korea rose 25 percent - in May 2015, the country exported 1.8 million tons of coal to China.

Exporting natural resources is a fairly simple way for a totalitarian regime to make money without weakening control over the population. Another advantage is that the export of natural resources from Korea was not included in the UN sanctions list, so the country can make money from the export of coal quite legally.

2. Ballistic missiles

North Korea is also known for its provocative ballistic missile launches, which are usually attributed to the "machinations of evil capitalists." But North Korea's ballistic missiles are used not only for this, they are also exported, bringing tens of millions of dollars to the DPRK budget a year. Ballistic missile exports also allow the government to continue producing missiles for domestic use, thanks to economies of scale.

3. Weapons factories

North Korea is one of the most militarized countries in the world, its army is more than a million people, which, accordingly, need to be armed. North Korea's huge arms industry is another way to earn foreign exchange for the cash-strapped nation. The country not only exports heavy weapons, including rocket launchers and anti-aircraft missile systems, but also offers assistance in building weapons factories for its clients.

Over the past 30 years, North Korea has participated in the construction of two Ethiopian arms factories and the supply of industrial equipment to that country. Given that the factories were developed in North Korea, only it can provide spare parts for industrial equipment, thereby forcing Ethiopia to continue to cooperate with itself. North Korea has also built military facilities in other African countries such as Nigeria and Madagascar.

4. Statues

A colossal number of statues have been built in North Korea, since they are one of the propaganda tools in the country. Given North Korea's extraordinary experience in creating statues, other countries have even begun to order sculptures from it.

So, Zimbabwe recently paid $ 5 million to order two statues of the country's President Robert Mugabe. Also in North Korea, statues were made to order for Angola, Egypt, Equatorial Guinea, Ethiopia and even Germany. North Korea's largest customer is Namibia, which was awarded a $ 60 million contract in the early 2000s to build a giant war memorial at Windhoek.

5. Restaurants

Restaurants that offer "authentic North Korean food" and traditional dance and song entertainment can be found throughout Asia. Interestingly, these restaurants are truly Korean - in the 1990s, North Korea opened an entire chain of Pyongyang Restaurant across Asia. This made it possible to kill three birds with one stone: earning money for the treasury, funding North Korean embassies in countries where restaurants operate, and money laundering. b

6. Textiles

Economic activity is boiling on the border between China and North Korea. It is believed that about a quarter of all residents of China's Dandong province do joint business with the North Koreans. One example is economic activity are textile factories that exclusively employ North Koreans. The products from these factories are then transported across the border, where they are labeled "Made in China". Such demand for manufacturing products in North Korea is not surprising - after all, this country has one of the cheapest labor in the world.

7. Counterfeit US banknotes

North Korea is the undisputed leader in counterfeit banknote production. Earlier, the United States claimed that its $ 100 banknotes are among the most secure in the world. But that didn't stop North Korea, which bought equipment from Japan, paper from Hong Kong, and ink from France. The new counterfeit money turned out to be of such high quality that the United States had to introduce a new $ 100 note in 2013.

8. Labor force

What North Korea has in abundance is people. But how can you monetize this "product"? Before North Koreans leave overseas, their families are effectively taken hostage to ensure that the money they earn is transferred back to their homeland, as well as the workers' return home. About 50,000 North Korean workers now work abroad, sending home remittances totaling nearly $ 2 billion a year.

9. Methamphetamines

North Korea has been trading drugs since 1970 - ever since the country defaulted on its international debts. Initially, Korea took contracts for the transport of consignments of drugs with the help of diplomats, using diplomatic immunity. Later, North Korea began producing its own drugs, primarily methamphetamine, which it began to trade through its embassies. North Korean methamphetamine is best known for its high purity (99 percent).

This is not surprising, given that drugs are produced on state enterprises under the guidance of professional chemists. However, since the mid-2000s, the purity of Korean drugs has declined sharply, but volumes are still growing.

10. Nuclear reactors

Probably North Korea's most surprising export item was its attempt to build a fully functioning nuclear reactor for Syria, which Israel bombed in 2007. If the reactor hadn't been bombed, it could have produced enough plutonium to create one or two atomic bombs every year.

North Korea also has one that is worthy of entering tourist guides.