As of 2023, despite slowly renewing cross-border trade, North Korea remains one of the World's most isolated and one of Asia's poorest countries.
North Korea has a command economy, which is common among communist nations. The government has complete control over all monetary exchanges, causing the economy to remain stagnant due to a lack of competition between businesses.
In 2021, South Korea's nominal gross domestic product (GDP) amounted to around 2,071 trillion South Korean won, compared to that of North Korea which was approximately 35.89 trillion South Korean won. With this, South Korea's nominal GDP was around 57 times greater than that of North Korea.
North Korea and Poverty
As a result of its economic structure and lack of participation within the world economy, poverty in North Korea is prevalent. Approximately 60% of North Korea's population lives in poverty. North Korea has a command economy, which is commonplace among communist countries.
On November 15, 2021, according to reports, South Korea ranks fourth in the world in terms of relative poverty among major economies.
South Korea's education system and the establishment of a motivated and educated populace was largely responsible for spurring the country's high technology boom and economic development. South Korea began to adapt an export-oriented economic strategy to fuel its economy.
After taking account of housing costs, on average in 2019-20 one in eight people (13.4%) and one in six children (16.6%) lived below the poverty line. Over three million (3,319,000) people lived in poverty, including 761,000 children.
Internet access is available in North Korea, but is only permitted with special authorization. It is primarily used for government purposes, and also by foreigners. The country has some broadband infrastructure, including fiber optic links between major institutions.
In its public pronouncements, Pyongyang has called for accelerated population growth and encouraged large families. According to one Korean American scholar who visited North Korea in the early 1980s, the country has no birth control policies; parents are encouraged to have as many as six children.
After the end of Soviet aid in 1991, North Korea faced serious economic setbacks that exacerbated decades of economic mismanagement and resource misallocation. Since the mid-1990s, North Korea has faced chronic food shortages and economic stagnation.
North Korean citizens usually cannot freely travel around the country, let alone travel abroad. Emigration and immigration are strictly controlled.
Cha Chol-ma (차철마) is a North Korean businessman believed to be one of the wealthiest individuals in the country.
North Korea's ideology of Juche has resulted in the country pursuing autarky in an environment of international sanctions. While the current North Korean economy is still dominated by state-owned industry and collective farms, foreign investment and corporate autonomy have increased.
Can North Koreans travel abroad? It's a question that frequently arises on our North Korea Tours. In short – Yes they can, but only with the necessary permission. While waiting for your train to Pyongyang at Dandong station or your flight from Beijing you will encounter hundreds of Travelling North Koreans.
North Korea is a net energy exporter. Primary energy use in North Korea was 224 TWh and 9 TWh per million people in 2009. The country's primary sources of power are hydro and coal after Kim Jong Il implemented plans that saw the construction of large hydroelectric power stations across the country.
NORTH KOREA - AVOID ALL TRAVEL
Avoid all travel to North Korea due to the uncertain security situation caused by its nuclear weapons development program and highly repressive regime. There is no resident Canadian government office in the country.
A common misconception among tourists is that alcohol in North Korea is either banned or severely restricted. In fact not only is it very common, its production is actually encouraged by the state.
Prominent supposedly executed criminals include officials convicted of drug trafficking and embezzlement. Common criminals convicted of crimes such as murder, robbery, rape, drug dealing, smuggling, piracy, vandalism, etc. have also been reported to be executed, mostly by firing squad.
Netflix isn't available in: China. Crimea. North Korea.
North Korea has strict laws about what you can bring into the country. It's illegal to bring in religious, pornographic or political items. Declare all published material and electronic devices when you arrive. It's also illegal to knowingly or unknowingly possess items that breach North Korean law.
Television in North Korea is subject to the Korean Central Broadcasting Committee and controlled by the Propaganda and Agitation Department of the Workers' Party of Korea. A study in 2017 found that 98% of households had a television set.
The state with the highest poverty rate is Tasmania (12.7 per cent) followed by South Australia and Queensland with 11.1 and 9.9 per cent of their respective populations in poverty.
Poverty rates were highest in non-urban areas in the smallest States and Territories, including 17.7% outside the capital in Tasmania, 17.4% outside the capital in South Australia, and 15.8% in the Northern Territory.
How does poverty in Australia compare with other countries? In the most recent data from the Organisation for Economic Co-operation and Development (OECD) (2021 or latest data), Australia had the 15th highest poverty rate of 36 OECD countries.