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KDI - Korea Development Institute

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North Korea Economy KDI Review of the North Korean Economy, July 2025 July 31, 2025

North Korea Economy

Monthly published paper on the current status of the North Korean Economy and major
issues on inter-Korean economic cooperation assisting academia, policy makers and corporate sectors to better understand North Korea

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LanguageKOR
KDI Review of the North Korean Economy, July 2025
July. 31. 2025
Summary
Following the 2023 Peace Economy Special Zone Act, comprehensive strategies have been presented to revitalize border regions that endured exceptional sacrifices as division frontlines and realize an inter-Korean economic community. Gyeonggi (province), Incheon (city), and Gangwon (province) border regions remain underdeveloped due to overlapping regulations including the Metropolitan Area Readjustment Planning Act and Military Installations Protection Act, yet possess significant potential to become key inter-Korean cooperation hubs through strategic collaboration based on regional characteristics. Northern Gyeonggi serves as the central nucleus for Korean Peninsula economic integration and industrial cooperation, while Gangwon holds differentiated strategic value as a gateway for northern economic expansion via the East Sea and hub for Mt. Geumgang-Seoraksan tourism and DMZ ecological tourism. Effective implementation requires rational regulatory relaxation including the Military Installations Protection Act, legal-institutional foundations encompassing inter-Korean integration law research, and phased financing mechanisms utilizing public, private, and overseas resources. Consistent policy implementation unaffected by inter-Korean relations fluctuations and close central-local government cooperation systems are imperative for sustainable progress.
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