Monetary & Banking 

 

 

Country name:

conventional long form: Democratic People's Republic of Korea
conventional short form: North Korea
local long form: Choson-minjujuui-inmin-konghwaguk
local short form: none
note: the North Koreans generally use the term "Choson" to refer to their country
abbreviation: DPRK

 

Capital:

Pyongyang. Population: 3.2 million (UN 2003).
 

 

Location:

Eastern Asia, northern half of the Korean Peninsula bordering the Korea Bay and the Sea of Japan, between China and South Korea

 

Area:

122,762 sq km (47,399 sq miles).

 

Description:
The Democratic People’s Republic of Korea shares borders in the north with China, in the east with the Sea of Japan, in the west with the Yellow Sea, and in the south with the demilitarised zone (separating it from the Republic of Korea). Most of the land consists of hills and low mountains and only a small area is cultivable. Intensive water and soil conservation programmes, including land reclamation from the sea, are given high priority. The eastern coast is rocky and steep with mountains rising from the water and this area contains most of the waterways.

 

Population:

22,697,553 (July 2004 est.)

 

Languages:

Korean

 

Economy - overview:
The Democratic People’s Republic of Korea has a Soviet-style command economy based on heavy industry. The country has rich mineral deposits, including most of the major base metals, as well as gold, silver and tungsten. Since the main industrial infrastructure was developed in the 1950s, development resources have gradually shifted to light industry and latterly concentrated on automation and modernisation.
A serious loss of trade with the former Soviet Union precipitated Korea (Dem Rep)’s economic decline during the 1990s. Estimated at 4% per annum, this contraction was compounded by a series of serious floods. Although most evidence is anecdotal (in the absence of detailed official information) it is clear that the North Korean people have recently suffered severe shortages and, in some areas, starvation.
The North Koreans have yet to adopt political or economic reforms on the scale seen in China, the Russian Federation and Eastern Europe. China is the most likely model, but so far Korea (Dem Rep) has gone no further than devaluing the Won (a largely artificial measure since the Won is not convertible) and cutting the subsidies on some basic goods.
Pyongyang has pinned its hopes on an improvement of relations with the South. There is US$300 million of trade between the two countries, conducted at present through intermediaries. In August 2003, an economic and trade agreement was signed under which South Korean companies manufacture products in the North (where labour costs are much lower). The major obstacle is political: Washington is still hostile to Korea (Dem Rep)’s nuclear ambitions.
http://www.worldtravelguide.net/country/139/business/Far-East-Asia/North-Korea.html

Economy:
The Democratic People’s Republic of Korea has a Soviet-style command economy based on heavy industry. The country has rich mineral deposits, including most of the major base metals, as well as gold, silver and tungsten. Since the main industrial infrastructure was developed in the 1950s, development resources have gradually shifted to light industry and latterly concentrated on automation and modernisation.
A serious loss of trade with the former Soviet Union precipitated Korea (Dem Rep)’s economic decline during the 1990s. Estimated at 4% per annum, this contraction was compounded by a series of serious floods. Although most evidence is anecdotal (in the absence of detailed official information) it is clear that the North Korean people have recently suffered severe shortages and, in some areas, starvation.
The North Koreans have yet to adopt political or economic reforms on the scale seen in China, the Russian Federation and Eastern Europe. China is the most likely model, but so far Korea (Dem Rep) has gone no further than devaluing the Won (a largely artificial measure since the Won is not convertible) and cutting the subsidies on some basic goods.
Pyongyang has pinned its hopes on an improvement of relations with the South. There is US$300 million of trade between the two countries, conducted at present through intermediaries. In August 2003, an economic and trade agreement was signed under which South Korean companies manufacture products in the North (where labour costs are much lower). The major obstacle is political: Washington is still hostile to Korea (Dem Rep)’s nuclear ambitions.
http://www.worldtravelguide.net/country/139/business/Far-East-Asia/North-Korea.html
 

 

Industries:

military products; machine building, electric power, chemicals; mining (coal, iron ore, magnesite, graphite, copper, zinc, lead, and precious metals), metallurgy; textiles, food processing; tourism