North Korea: Money-Making Process | Teen Ink

North Korea: Money-Making Process

April 29, 2016
By Diann BRONZE, Burbank, Illinois
Diann BRONZE, Burbank, Illinois
1 article 0 photos 1 comment

Everything in market costs money. For most people, in order to not go bankrupt, they need to watch and think about what they are buying, only buying the things that they can afford with their income. Money plays a crucial role in every country but especially in North Korea. Through the media, North Korea reveals their capital “Pyongyang,” where it’s more well-developed than other parts of the country. However, in most of parts of North Korea, there are no fancy buildings and common North Koreans live in shacks. Kids are dying due to starvation; even adults suffer through starvation. North Korea does not have enough money to support all of its citizens, and most of its citizens are starving of hunger.  Even in poverty, North Korean government continues to spend its money all in military advancements and improvements. South Korea and China, the two countries that border North Korea, are the main sources of North Korea’s money. North Korea gets sufficient amount of money from trading with South Korea and China, yet it still deals with a hardship of poverty.


Though, North Korea thinks differently, there are broad agreements among  North Korean officials regarding the fact that North Korea is definitely not using its money efficiently. In 2007, when the United States and Japan claimed that some money that was for the North Korean citizens could be sidetracked to the government, North Korean officials have refuted the claim by saying it is ridiculous and nonsense. Also, one of the factory managers in North Korea had concluded that North Korean citizens work for their country’s economic growth, even though, North Korea’s economy is still a little more than one-fifth of South Korea’s, North Korea’s economy has been growing significantly. (How does North Korea make its money?, 2013)


The factbook, produced by the Central Intelligence Agency (CIA). had estimated North Korea’s Gross Domestic Product (GDP) based on the study by  Organization for Economic Cooperation and Development (OECD). It estimated that North Korea’s GDP per citizen to be at $1,800 by 2011. This is extremely low compared to South Korea’s GDP per citizen of $31,700 in 2011 and China's GDP  of $3150.16 in 2011 (“China GDP,n.d.) 

(tradingeconomics) It is no exaggeration to say trading plays a huge economic role in North Korea.
North Korea exports minerals, metallurgical products, manufactures such as armaments, textiles, and agricultural and fishery products. China is the most dominant trading partner of North Korea because, according to the CIA World Factbook, North Korea consisted of 67.2% of exports to China and 61.7% of imports in 2011 (“How Does North Korea Make Its Money,” 2013). A professor at the University of London’s School of Oriental and African Studies, Jim Hoare (2013) has stated that North Korea’s market is full of Chinese goods. China supplies North Korea with such small things, such as toilet seats to large things, such as buses. At one point, China supported sanctions in response to North Korea’s military attempts, but China still believes that it is safer to have North Korea on its side since the U.S. allied with South Korea.


South Korea  accounts for 19.4% of exports and 20% of North Korean imports, being the second most assertive trading partner of North Korea. South Korea’s Ministry of Unification put the amount of trade between the two countries in 2011 at about $1.7 billion. Of that, 914 million was inbound and $800 million outbound. Also, the North Korean workers work for exhausting amount time and have to pay 45% their income to the government for various taxes. Nonetheless of all the taxes they pay, they don’t get the protection, job opportunities, education and health care that they deserve.


According to an unidentified official in South Korea, North Korea has spent about $850 million on the launch of missiles, which is enough to feed 19 million of the population of 25 million. The South Korean official also pointed out the fact that North Korea has suffered a deficit of 400,000 tons of food every year.. The money they have to launch missiles could resolve the problem of food shortages for six consecutive years. If North Korea’s government uses the money to launch missiles to feed its citizens, a great number of North Koreans don’t need to be starved. The North Korean government has the money, yet it chose not to use it for the people of North Korea. The North Koreans should not be punished by hunger for their poor government, who chose military weapons over their citizens.


The author's comments:

It took a lot of time to wirte this essay.

It was just an assignment our class did in World History, but it was still totallly cool to write, and publish an essay.


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This article has 6 comments.


on May. 15 2016 at 5:42 pm
monica.m BRONZE, Burbank, Illinois
1 article 0 photos 1 comment
Great job!

:):):):) said...
on May. 6 2016 at 4:51 pm
It is a really good written work, but I agree with Paige. It did go from topic to topic, but it was still very interesting to read about it. I learned new things! Keep writing.

:) :) :) :) said...
on May. 6 2016 at 4:48 pm
This was very good! It had a lot of information and knowledge. However, stating was Paige had said, it did somewhat jump from topic to topic. On the other hand, I got a lot of information from this and it was a good read. It wasn't boring like you would expect, it was actually very interesting to learn about. Great job! Keep it up, sonny boy!

Yeongni said...
on May. 6 2016 at 1:19 am
Nice. Very well written!!

Yeongni said...
on May. 6 2016 at 1:19 am
Nice. Very well written!!

Paige said...
on May. 5 2016 at 10:45 pm
While I think your article was very informative, it was somewhat confusing to jump around from topic to topic. I don't know if the structure got lost in the reposting, but try to outline your ideas next Time before you go in depth; I feel like this would add clarity. Otherwise great job! It was very informative to read and I gained new insights I have not preovously had. Well done.