Development of and Inspiration for North Korea’s Special Economic Zones

Abstract

The construction and development of the special economic zones in North Korea has been an arduous process. As a result, the special economic zones did not develop as quickly as expected and not to mention the objective that the special economic zones should lead the whole of North Korea along the road to comprehensive reform and opening up. The reasons lie in that: The special economic zones in North Korea are too conservative with a single form and they stressed sovereignty too much during the process of cooperation with outside parties; the special economic zones are restrained due to the low levels of opening up and their self-driven spirit; the policies of the special economic zones are not stable and there the market economy is underdeveloped; the development of the whole country has not coincided with that of the special economic zones. North Korea has initiated a new decision and plan for the construction of economic development zones in recent years; however, the development of the special economic zones may still face many unknown factors.