North Koreas trade with China expanded more than 60 percent to $5.63 billion in 2011 [...

] Commerce with China accounted for 70.1 percent of the Norths total $8 billion trade in 2011, up from 57 percent in the previous year, South Koreas national statistics office, Statistics Korea, said in its annual report today in Seoul. North Korea does not report economic data. Inter-Korean trade amounted to about $1.71 billion in the same year. Excluding a dip in 2009, trade between the two countries has increased every year since the start of 2000, when the statistics bureau started releasing estimates. Data for 2012 will be released around the end of next year. North Koreas economy expanded 0.8 percent in 2011 and gross national income per capita was 1.33 million won ($1,239), nearly one nineteenth that of South Koreas 25 million won, according to the Bank of Korea. South Koreas total nominal gross national income was 38.2 times that of the Norths 32.44 trillion won. The regime imported 3.8 million barrels of crude oil for 2011. Power generation capacity was 6.9 million kilowatts, less than one-10th that of South Korea. Steel production was 1.23 million tons and production of chemical fertilizer production was 471,000 tons. North Koreas population rose to 24.3 million in 2011 from 24.2 million the previous year about half of South Koreas. Population estimates were based on North Koreas 1993 and 2008 censuses. North korea economy after kim jongs death In preparation for the first anniversary of Kim Jong Ils death, North Korea is calling attention to its economic achievements. North Korean media announced that workers in each production sector met the goals of this year to commemorate the death of Kim Jong Il. The Korean Central News Agency (KCNA) reported on December 7, To honor the oath of bloody tears made before our Dear Leader Kim Jong Il, with burning hopes to charge ahead to meet the annual Peoples Economic Plan, industrial production output reached 100 percent and production of daily necessities reached 113.7 percent, as of December 5.Specifically, the machinery industrial sector was said to have reached its annual production goal by 107 percent as of the end of November. Rodong Sinmun, the mouthpiece of the Workers Party of Korea (WPK), also mentioned that a product exhibition was held from December 3rd to 6th in the Pyongyang Department Store No. 1.

In addition, KCNA reported that many hydroelectric power plants across the nation have already exceeded the annual electricity production plan. The KCNA claimed that Sodusu power plant exceeded the annual goal by 120.3 percent, while the Hochon River power plant and Jangjin River power plant reached 107.6 and 109.3 percent, respectively. North Korean media boasted its economic development and spoke of its economic revitalization strategy. In the KCNA commentary: We have developed our own economic revitalization strategies for economic development and devotion for this goal is deepening with time. North Koreas recent announcement and actual launch of the Kwangmyongsong-3 satellite is also claimed to be an essential process for North Koreas economic development. Unha-3rocket carryingthe satellite Kwangmyongsong-3, was developed by North Korean scientists and engineers by its own technology, and it is a noble achievement for its scientific and technical advancement to realize the goal of economic revival, stated Choson Sinbo, a Japanbased pro-North Korean newspaper. Analysts see North Koreas recent moves (that is, its stressing of economic achievements and the rocket/satellite launch) as Pyongyangs effort to emphasize the Kim Jong Un regimes intent to uphold the teachings of the late leader Kim Jong Il through strengthening the economy. The year 2012 was propagated by North Korea to be the first year of its kangsong taeguk (strong and prosperous nation). North Korea is trying to prove to its people that, despite Kim Jong Ils death, this effort is still continuing under the Kim Jong Un leadership. In the December 7th article of the KCNA, annual evaluation was made of the various economic achievements. The article called the past year a historical miracle of a new era, and first year of new centennial of juche. It also stated that a new historical miracle was created to mark the new era of strong Korea (Chosun) upholding the great teachings of General Kim Jong Il. The KCNA mentioned the Day of the Sun celebrations and other various celebrations, WPK conference, Kim Jong Uns onsite visits to military bases, completion of the Huichon Power Station, Pyongyang city park construction, and Moranbong band performances as major achievements of the year. In addition, the new 12-year compulsory education policy, outstanding performance by North Korean athletes at the 2012 London Olympics (i.e., four gold and one bronze medal), and the commissioning of the new State Culture and SportsGuidance Commission were also mentioned as main accomplishments of the year.

The Difference Between North Korea & South Korea Illustrated

Brad Plumer has this telling chart over how the economies of North Korea and South Korea has developed over the last few decades:

The main reason for this divergence is that North Korea is a planned economy while South Korea's is mostly market based, but the North's extreme trade isolationism/protectionism and it's extreme militarism (using more than 25% of its GDP on its military and with more than a fifth of men aged 17-54 in active military duty with the rest being considered reserve soldiers) have also contributed to this divergence. The end result of this is not just that they're generally poor in North Korea, but also that millions have starved to death and much of the rest are malnourished (resulting in the fact that they are on average 15 centimeters (6 inches) shorter than in South Korea) and the fact that they don't have any electricity much of the day or during nights, as can be seen in this classic photo:

GEOGRAPHICAL NAMES

Page last updated on February 23,

Economy - overview: North Korea, one of the world's most centrally directed and least open economies, faces chronic economic problems. Industrial capital stock is nearly beyond repair as a result of years of underinvestment, shortages of spare parts, and poor maintenance. Large-scale military spending draws off resources needed for investment and civilian consumption. Industrial and power output have stagnated for years at a fraction of pre-1990 levels. Frequent weather-related crop failures aggravated chronic food shortages caused by on-going systemic problems, including a lack of arable land, collective farming practices, poor soil quality, insufficient fertilization, and persistent shortages of tractors and fuel. Large-scale international food aid deliveries have allowed the people of North Korea to escape widespread starvation since famine threatened in 1995, but the population continues to suffer from prolonged malnutrition and poor living conditions. Since 2002, the government has allowed private "farmers' markets" to begin selling a wider range of goods. It also permitted some private farming - on an experimental basis - in an effort to boost agricultural output. In December 2009, North Korea carried out a redenomination of its currency, capping the amount of North Korean won that could be exchanged for the new notes, and limiting the exchange to a one-week window. A concurrent crackdown on markets and foreign currency use yielded severe shortages and inflation, forcing Pyongyang to ease the restrictions by February 2010. In response to the sinking of the South Korean destroyer Cheonan and the shelling of Yeonpyong Island, South Korea's government cut off most aid, trade, and bilateral cooperation activities, with the exception of operations at the Kaesong Industrial Complex. In preparation for 2012, the 100th anniversary of Kim Il-sung's birthday, North Korea continued efforts to develop special economic zones with China and expressed willingness to permit construction of a trilateral gas pipeline that would carry Russian natural gas to South Korea. The North Korean government often highlights its 2012 goal of becoming a "strong and prosperous" nation and attracting foreign investment, a key factor for improving the overall standard of living. Nevertheless, firm political control remains the government's overriding concern, which likely will inhibit changes to North Korea's current economic system. GDP (purchasing power parity): $40 billion (2011 est.) country comparison to the world: 99
$40 billion (2010 est.)

$40 billion (2009 est.) note: data are in 2011 US dollars; North Korea does not publish reliable National Income Accounts data; the data shown here are derived from purchasing power parity (PPP) GDP estimates for North Korea that were made by Angus MADDISON in a study conducted for the OECD; his figure for 1999 was extrapolated to 2009 using estimated real growth rates for North Korea's GDP and an inflation factor based on the US GDP deflator; the results were rounded to the nearest $10 billion. [see also: GDP country ranks ]

GDP (official exchange rate): $28 billion (2009 est.) [see also: GDP (official exchange rate) country ranks ] GDP - real growth rate: 4% (2009 est.) country comparison to the world: 101
-0.4% (2008 est.) -0.9% (2009 est.) [see also: GDP - real growth rate country ranks ]

GDP - per capita: $1,800 (2011 est.) country comparison to the world: 191
$1,800 (2010 est.) $1,900 (2009 est.) note: data are in 2011 US dollars [see also: GDP - per capita country ranks ]

GDP - composition by sector: agriculture: 20.8% [see also: GDP - composition by sector - agriculture country ranks ] industry: 48.2% [see also: GDP - composition by sector - industry country ranks ] services: 31% (2010 est.) [see also: GDP - composition by sector - services country ranks ] Labor force: 12.2 million country comparison to the world: 41 note: estimates vary widely (2009 est.) [see also: Labor force country ranks ]

Labor force - by occupation: agriculture: 35% [see also: Labor force - by occupation - agriculture country ranks ] industry and services: 65% (2008 est.) Unemployment rate: NA% [see also: Unemployment rate country ranks ] Population below poverty line: NA% [see also: Population below poverty line country ranks ] Household income or consumption by percentage share: lowest 10%: NA% [see also: Household income or consumption by percentage share - lowest 10% country ranks ] highest 10%: NA% [see also: Household income or consumption by percentage share - highest 10% country ranks ] Budget: revenues: $3.2 billion [see also: Budget revenues country ranks ] expenditures: $3.3 billion (2007 est.) [see also: Budget expenditures country ranks ] Taxes and other revenues: 11.4% of GDP country comparison to the world: 201 note: excludes earnings from state operated enterprises (2007 est.) [see also: Taxes and other revenues country ranks ] Budget surplus (+) or deficit (-): -0.4% of GDP (2007 est.) country comparison to the world: 47 [see also: Budget surplus (+) or deficit (-) country ranks ] Inflation rate (consumer prices): NA% [see also: Inflation rate (consumer prices) country ranks ] Agriculture - products: rice, corn, potatoes, soybeans, pulses; cattle, pigs, pork, eggs

Industries: military products; machine building, electric power, chemicals; mining (coal, iron ore, limestone, magnesite, graphite, copper, zinc, lead, and precious metals), metallurgy; textiles, food processing; tourism Industrial production growth rate: NA% [see also: Industrial production growth rate country ranks ] Electricity - production: 22.52 billion kWh (2008 est.) country comparison to the world: 68 [see also: Electricity - production country ranks ] Electricity - consumption: 18.85 billion kWh (2008 est.) country comparison to the world: 69 [see also: Electricity - consumption country ranks ] Electricity - exports: 0 kWh (2009 est.) [see also: Electricity - exports country ranks ] Electricity - imports: 0 kWh (2009 est.) [see also: Electricity - imports country ranks ] Oil - production: 118 bbl/day (2010 est.) country comparison to the world: 118 [see also: Oil - production country ranks ] Oil - consumption: 13,000 bbl/day (2010 est.) country comparison to the world: 147 [see also: Oil - consumption country ranks ] Oil - exports: 0 bbl/day (2009 est.) country comparison to the world: 181 [see also: Oil - exports country ranks ] Oil - imports: 15,810 bbl/day (2009 est.) country comparison to the world: 125 [see also: Oil - imports country ranks ]

Natural gas - production: 0 cu m (2009 est.) country comparison to the world: 200 [see also: Natural gas - production country ranks ] Natural gas - consumption: 0 cu m (2009 est.) country comparison to the world: 193 [see also: Natural gas - consumption country ranks ] Natural gas - exports: 0 cu m (2009 est.) country comparison to the world: 125 [see also: Natural gas - exports country ranks ] Natural gas - imports: 0 cu m (2009 est.) country comparison to the world: 83 [see also: Natural gas - imports country ranks ] Natural gas - proved reserves: 0 cu m (1 January 2011 est.) country comparison to the world: 152 [see also: Natural gas - proved reserves country ranks ] Exports: $2.557 billion (2010) country comparison to the world: 133
$1.997 billion (2009) [see also: Exports country ranks ]

Exports - commodities: minerals, metallurgical products, manufactures (including armaments), textiles, agricultural and fishery products Exports - partners: China 50.3%, Brazil 5.7%, Lebanon 4.7%, Dominican Republic 4.2%, Netherlands 4.1% (2010) Imports: $3.529 billion (2010) country comparison to the world: 141
$3.096 billion (2009) [see also: Imports country ranks ]

Imports - commodities: petroleum, coking coal, machinery and equipment, textiles, grain Imports - partners: China 40.6%, Algeria 34.2%, India 8.9% (2010) Debt - external: $12.5 billion (2001 est.) country comparison to the world: 88 [see also: Debt - external country ranks ] Stock of direct foreign investment - at home: $1.475 billion (31 December 2010 est.) country comparison to the world: 90
$1.437 billion (31 December 2009 est.) [see also: Stock of direct foreign investment - at home country ranks ]

Exchange rates: North Korean won (KPW) per US dollar (market rate)
145 (2011) 145 (2010 est.) 3,630 (December 2008) 140 (2007)

South korea economic watch

South Korea is the 12th largest economy in the world, with a GDP (PPP) of 1.459 trillion in 2010. South Korea is one of the fastest growing economies from the 1960s to 1990s, and was termed as one of the Asian Tigers, along with Hong Kong, Singapore and Taiwan.
South Korea's economic growth relied heavily on its exports, due to a lack of natural resources, and small domestic consumer market. This also makes them them the 7th largest exporter and 10th largest importer in the world. The South Korean economy has also grown from one which is labor-intensive, to one which is more capital and technology-orientated. South Korea's growing economy is also one of the few countries which avoided recession during the 2008 financial crisis . However, the country's progressive economic growth could be impeded by its continued tension with North Korea. Economic ties between North and South Korea were established in 1988, and trade volume rose to $1.82 billion in 2008, making South Korea the second largest trading parter of North Korea, after China. But constant conflicts between the two nations have severed the economic ties between them. South Korea is also a member of world organizations including the G-20, APEC, OECD and WTO. It has also signed free trade agreements with other coutries, with the most important free trade agreement signed with the US in 2007, the Korea-US Free Trade Agreement (KORUS FTA) which removed all trade and investment barriers between 2 countries. This also made US their second largest export market.

Economic Geography

South Korea has a land area of 96,920 square km, with 16.58 percent of arable land. The country's main agricultural crops are rice and barley. Other products supplied by South Korea includes vegetables, fruits, root crops, cattle, pigs, chicken, milk, eggs and fish. South Korea also enjoys few natural resources such as coal, tungsten, graphite, molybdenum, lead and hydropower potential.

Population and Labour Force

South Korea has a population of 48.75 million people as of 2010, with a labour force of 24.62 million people. In 2010, the unemployment rate in South Korea is 3.725 percent. South Korea has a labor force with 70 percent of its workers employed as irregulars, people who take up temporary or uncommon jobs. An imbalance of work protection and benefits between the regular and irregular workers have led to strikes and protests by the irregular workers. This irregular labour force is the driving factor behind South Korea's economic recovery from the 2008 financial crisis and experts says that though the unemployment rate of 3.725 percent reflects on the growth of labor market, it does not reflect well on the fact that more than half of its workers are irregular workers receiving poverty wages.

Industry Sector
The industry of South Korea contributes 39.4 percent of the country's GDP in 2010 . The industry and manufacturing industries are the major growth engine for South Korea during its economic progress in the 1980s. South Korea's largest industries are electronics, automobiles, telecommunication and shipbuilding. Electronics boosted the South Korean economy in the 1980s , by becoming the world's sixth largest manufacturer of electronic goods such as color televisions, microwave ovens, radio, watches and personal computers. . South Korea is also a major manufacturer of semiconductors, with Samsung Electronics and Hynix Semiconductor the global leaders in the production of memory chips. The automotive industry also plays a major role in the South Korean economy today . It has grown into one of world's largest automobile producers, coming in 5th after the United States and Germany, with an estimate of 4.27 million automobile produced a year. Some of South Korea's international automobile brands include Hyundai, Kia and Renault. From a slow start of two million subscribers to a current high of 40 million, mobile telephone is the fastest growing area in telecom, going beyond the 20 million fixed lines serving a 40 million-strong population.Today, South Korea also has the highest number of broadband users in the world. The presence of one of the fastest broadband networks in the world also permits e-commerce to grow. South Korea is a global player in the production of ships, with a 50.6 percent share of the global shipbuilding market in 2008. Four of the world's largest shipbuilding companies are from South Korea: Hyundai Heavy Industries, Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering and STX Offshore & Shipbuilding. Europe's largest shipbuilder, STX Europe, is also owned by South Korea. Services in South Korea contributes 57.6 percent of the nation's total GDP , and employs 68.4 percent of the workforce. The government shifts its focus from manufacturing to services in 2009, and experts predict that the services will be the driving force of South Korea's economy for the next few years, as current productivity level is just at 58 percent of that in manufacturing.

South Korea is an export-orientated country, with a total trade volume of 884.2 billion in 2010. This figure also makes them the 7th largest exporter and 10th largest importer in the world . Since 2003, South Korea has established its network of free trade agreements to boost trade and economic ties with other countries. Currently, South Korea has 5 FTAs in effect, 3 FTAs which has concluded discussions, and 19 FTAs under negotiation and consideration. So far, the biggest FTA of South Korea is the Korea-US Free Trade Agreement (KORUS FTA) signed in 2007. This free trade agreement plans to liberate 95 percent of the trade tariffs between the 2 countries. It is also US first free trade agreement with a major Asian economy and biggest deal since the North America Free Trade Agreement (NAFTA) signed with Japan in 1993. With a lack in natural resources, South Korea has a high dependence on import of capital goods, raw materials and industrial supplies. The country is also the 5th largest importer of oil in the world, with 3.074 million barrels imported per day.