File photo: North Koreans hawk their wares at a street market in Hyesan, Ryanggang province. (©Daily NK)
North Korea’s approach to markets has undergone an evolution as it balances state control with economic necessity. With COVID-19 now classified as endemic, the role of markets has shifted, with authorities focusing on stimulating rather than suppressing them.
Market policies vary across regions, revealing a flexible approach to economic operations. In some regions, markets are restricted while in others they operate without restrictions. A notable development is the relaxation of restrictions on street vendors in certain regions, allowing governments to collect fees from these small businesses.
North Korean authorities recently began processing registration applications for market stalls and commercial storefronts across the country. The new system requires potential owners to submit a fee and a detailed business plan. While it promises greater business opportunities, many North Koreans view it skeptically as another way to extract government funds.
This approach is consistent with Kim Jong Un’s 20×10 regional development policy, which leverages markets as a means of generating revenue. However, due to limited resources, fully integrating markets into the state-run economy remains a distant goal.
As North Korea navigates this complex economic landscape, the government’s approach to markets will continue to evolve. The challenge will be to balance control with economic necessity. The ultimate goal should be to enable North Koreans to live lives of dignity and economic stability, which requires a nuanced understanding of the country’s market dynamics and strategies to improve the situation within the constraints of the current system.
This article is adapted from an article that appeared in The Diplomat.
