North Korea’s Economic Policy in 2018 and Beyond: Reforms Inevitable, Delays Possible

Rüdiger Frank

North Korea’s Economic Policy in 2018 and Beyond: Reforms Inevitable, Delays Possible

Rüdiger Frank

Department of East Asian Studies

Publications: Contribution to journal › Article › Peer Reviewed

Abstract

Kim Jong Un has based his claim to legitimacy as North Korea’s leader on economic performance. This makes him more vulnerable to economic crises than his predecessors. If he wants to stay in power and achieve Korean unification under his leadership, he will have to succeed in making North Korea the next East Asian tiger. However, reaching such an ambitious goal will be impossible without decisive steps towards privatization. While these have not been taken yet, economic stability has so far been ensured by very specific domestic and external factors that have bought Kim Jong Un time. In the meantime, Kim has worked to build North Korean versions of chaebols—large and broadly diversified business conglomerates with close ties to the state, the Party, and the military. These will ultimately help Kim to stay in control even after bold systemic reforms to which, in the end, there is no alternative.

Translated title of the contribution	Die Wirtschaftspolitik Nordkoreas im Jahr 2018 und darüber hinaus: Reformen unvermeidlich, Verzögerungen möglich
Original language	English
Journal	38 North
Publication status	Published - 8 Aug 2018

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Austrian Fields of Science 2012

502027 Political economy

Keywords

Chaebol
Economic Development
Economic Reform
Kim Jong-un
KKG
Korea Kumgang Group
Markets
Privatization

Access to Document

https://www.38north.org/2018/08/rfrank080818/

Cite this

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AB - Kim Jong Un has based his claim to legitimacy as North Korea’s leader on economic performance. This makes him more vulnerable to economic crises than his predecessors. If he wants to stay in power and achieve Korean unification under his leadership, he will have to succeed in making North Korea the next East Asian tiger. However, reaching such an ambitious goal will be impossible without decisive steps towards privatization. While these have not been taken yet, economic stability has so far been ensured by very specific domestic and external factors that have bought Kim Jong Un time. In the meantime, Kim has worked to build North Korean versions of chaebols—large and broadly diversified business conglomerates with close ties to the state, the Party, and the military. These will ultimately help Kim to stay in control even after bold systemic reforms to which, in the end, there is no alternative.

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KW - KKG

KW - Korea Kumgang Group

KW - Markets

KW - Privatization

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