North Korea has promoted its external trade policy only as an auxiliary means to build its self-reliant economy on the basis of the principle of national monopoly, a self-reliant economy, and reciprocity. Exports from North Korea have only been a mean...
North Korea has promoted its external trade policy only as an auxiliary means to build its self-reliant economy on the basis of the principle of national monopoly, a self-reliant economy, and reciprocity. Exports from North Korea have only been a means to acquire foreign hard currency to import goods, while its tariff system plays no active role to protect and promote its domestic industries as external trade is under national planning and monopoly.
The June 15 South-North Joint Declaration, however, has triggered an increase in exchange of people and materials between South and North Korea. This sign of change, as such, is expected to enhance economic exchange and cooperation between the two. In this regard, a look at North Koreas external trade will be timely and meaningful. Currently, the Trade Department is in charge of North Koreas trade and external economic affairs, mainly handles trade, tariffs, joint ventures and transportation with foreign companies, as well as exchanges with the South. Tariff authorities include the General Bureau of Tariff Administration in charge of general tariffs affairs and the Customs Office, which handles actual tariff-related business. The role of the North Korean customs business is limited now, but as external opening accelerates, its role will be reinforced.