North Korea had tried to overcome a crisis by continuing political and ideological control, even though the country had recognized its chronic inefficiency of centrallyplanned economy. However, the North has sought new national strategy with special e...
North Korea had tried to overcome a crisis by continuing political and ideological control, even though the country had recognized its chronic inefficiency of centrallyplanned economy. However, the North has sought new national strategy with special economic zones, one of the major factors of market economy, which is different from the current system in the mood of a new international order since 1990’s. Strengthening the regime and surmounting international isolation by attracting foreign capital, it has attempted strategy to restore its regime.
The purpose of this thesis is to prove that leaders of North Korea have chosen special economic zones in the brink of extinction of the regime in the end of cold war era. In other words, the paper explains why the country has chosen the strategy to restore the regime. It has tried to stabilize the system and solve the contradiction of its economy system with the strategy in that period. Regarding political burden of the leaders as a minor factor, previous studies of the special economic zones only focus on economic efficiency. As a result, this paper analyses ‘political’ field which has not been important to solve the problem with new concept of ‘national strategy.’ This study also analyses domestic and foreign interdependence related to the economic policies that the state have chosen in the crisis. With the policies, it focused on domestic and foreign strategy, such as relations of South and North Korea and international situation.
The paper also proved that North Korea’s economic strategy is not the overall reform, open and systemic transition but ‘economic strategy of reinforcing its own system to restore socialistic economy. The purpose of the North’s special economic zones is to solve its capital deficiency and underdevelopment. Therefore, the change of the economic strategy is not for the systemic transition but for overcoming crisis.
Research hypothesis and research purpose have been set by the concept of crisis, mobilization and extraction to analyze dynamics and strategic feature of the special economic zones. In addition, the economic strategy has been analyzed by the concept of ‘mobilization-extraction’, since the special economic zones strategy has close relations to the North Korea’s national strategy and international environment. Concretely, considering the history of the domestic and foreign crisis, dynamics of the special economic zones can be divided into four periods; seeking period(1984〜1991), experimental period (1991〜1998), expansion period (1998〜2010) and specialization period (2010〜). The paper also adds the evaluation of each period. It verifies the special economic zones are sporadic by dividing periods and diversely analyzing the domestic and foreign interaction of mobilization-extraction.
In addition, the efficiency of the state’s special economic zones is low, because according to the principal that gives priority to frontier cities and gives chance later to the capital cities, most of the zones are far away from the capital city of Pyongyang. It makes difficulties of pass, communication and custom clearance and restricts physical and human infrastructure. It points out the special economic zones have feature of segmental development because of political reason rather than autonomous spread. This study also analyses transformation and sustainability of economic independence of Juche ideology on special economic zones and the possibility of political transition from focusing on military to focusing on economy. On the basis of this, the paper also prospects the development likelihood of SOZ(Special Open Zone) and SUZ(Specially Universalized Zone).
Even though leaders of North Korea fully understand the necessity of the zones, they cannot try to widely open its market to maintain its regime. Can these sporadic special economic zones be successful? For the resolutions, the paper suggests two possibilities. Firstly, if these sporadic special economic zones are successful, the North will likely spread the successful model of the economy across the nation. The North can avoid political threat by isolating the special economic zones from the residential districts and only supplying workforce. As a result, the country is likely to maintain this way. Secondly, if the specialized zones are failed, the country will be likely to implement closed and reduced polices rather than opening the zones. Gaesung industrial complex and Mt. Geumgangsan tourist industry were isolationist special zones. Employees from South Korea did not allow moving freely to Gaesung and stayed limited areas. Companies invested Gaesung industrial complex complied with North Korea’s request, since most of them were from South Korea and they understood special condition of division. When North Korea attracts foreign capital, however, ‘special economic zone isolationism’ is highly likely to have negative influence to creating special economic zones.
In face of danger of fundamental limit and restrict, the North cannot help focusing on special economic zones. The economy of the country has not yet reached to the previous level since ‘Arduous March’. July 1st economic measures in 2002 and currency reform in 2009 have failed and have intensified confusion to the society. Under the circumstance, the North has no ability to implement economic policies based on current centrally planned economy. Therefore, the country can be evaluated that it is pushing ahead strategy of special economic zones with its own way under the political and economic restrictions. The leaders of the country are seeking strategy which makes coexistence of market, plan, economic autonomy and political stabilization. The possibility of success of strategy is not clear, but, if it is successful, ‘survival of regime’ which is current goal of the leaders will be extended little bit more.
■ Key words: specialized zone strategy, special economic zones, specialized zone development, mobilization-extraction, domestic and foreign interaction, strengthening own regime, reform and open, regime transition, restore regime, survival of regime, unbalanced development strategy based on segmentally developed market, special economic zone isolationism, specialized zone far away from the capital city, focusing on economy rather than military, SOZ, SUZ.