2021 North Korean Economic Assessment and 2022 Economic Policy Outlook 

Choi Eun-ju 

(ej0717@sejong.org) 

Research Fellow, 

the Sejong Institute

Executive Summary

■ North Korea has pursued policies to strengthen its internal economic management capabilities since COVID-19 outbroke two years ago and stopped overseas trade

○ At the 8th Party Congress in 2021, an economic management strategy over the next five years was chosen to strengthen internal capabilities and overcome economic difficulties

○ In December 2021, the 8th plenary session of the Central Committee of the Workers' Party of Korea was held to evaluate the economic situation in 2021 and announce economic plan for 2022

○ In particular, the 10-year strategy for rural development was announced as a medium- to long-term task, and the regional economic development plan was discussed at the 8th party convention.

■ In 2021, North Korea evaluated its economic performance positively, but it is estimated that the industrial plan was not be achieved

○ Restructuring economic order, searching and implementing measures to stabilize the economy, continuing projects to improve economic management methods, and strengthening legal systems under difficult conditions are appreciated

○ There is no specific evaluation of other industries except agriculture and construction

○ The results of metal and chemical industries, which received concentrated state investment, were not mentioned and were probably mediocre, and the slump in the industry may have had a negative impact on related industries

○ The results of each industry are unclear, but prices of domestic products are more stable than those of imported goods

■ The North Korean economy maintains its strategy to concentrate on maintenance and reinforcement proposed at the 8th National Congress in 2022

○ Development of agriculture, construction, and light industries are expected by concentrating investment in the metal and chemical industries and strengthening the capabilities of the core industries

○ The light industry is expected to focus on the food processing technology development for North Korean people, and the party's policy is expected to provide free school uniforms and bags as important measures.

○ Specific plans for external economy and trade were not disclosed probably to strengthen internal capabilities, but trade under strict state control is expected to resume

■ Realization of simultaneous and balanced development policies by developing backward rural areas through specific strategies for rural development

○ Proposal to ease regional imbalances by solving rural and agricultural problems beyond food production problems

○ Amid international economic sanctions, North Korea may promote international economic activities that do not violate sanctions against North Korea with its interest in tourism

○ Since the Kim Jong-un administration, the government has been promoting policies to revitalize the tourism industry and constructing infrastructure to attract overseas tourists.

○ In order to resume inter-Korean exchange projects through tourism, it is necessary to accurately understand North Korea's tourism policy 

○ Emphasis on independent and self-reliant development that reflects the characteristics of each region and improves the feasibility of establishing and promoting economic development measures that link agriculture and manufacturing in the region

■ In the future, the economic sector's goals will be achieved only if investment resources are secured and insufficient imports are resolved.

○ Implementation of the basic industrial development plan, which requires continuous investment while the country's fiscal size is not expanding, regional development projects that start this year may be a financial burden.

○ Failure to supply raw materials, parts, and equipment that depend on imports from the metal and chemical industries could decrease the overall production capacity, and the resumption of trade will have a significant impact on North Korea's economic plan.

○ In the case of rural development strategy, medium- to long-term agricultural cooperation and development cooperation projects with the international community can be carried out effectively in the long run.