This study observed political and economic changes in the tourism industry that led to the Kim Il-sung, Kim Jong-il and Kim Jong-un periods, focusing on the emergence of the tourism industry as a driving force for the change in North Korea. Through an...
This study observed political and economic changes in the tourism industry that led to the Kim Il-sung, Kim Jong-il and Kim Jong-un periods, focusing on the emergence of the tourism industry as a driving force for the change in North Korea. Through analyzing the socialist tourism policy that North Korea has been promoting, I assert that the North Korea tourism has been in the process of adding economic concepts and evolving into "tourism as an industry" beyond its original role of implementing self-reliance ideology and promoting socialist regime superiorit.
North Korean leaders have clung to this position, convinced that a self-sustained economy is the only solution to counter long-standing international sanctions. In the case of tourism policies, the tourism industry has also been given the role of political subordinate units that contribute to maintaining socialism. North Korean strategy of developing the heavy industry sector first to build a socialist self-sustained economy has led to the loss of investment in tourism development and momentum.
During the period of Kim Il-sung and Kim Jong-il, North Korea recognized the tourism industry as a threat to the socialism. The Cold War-era tourism industry, which only targeted the Third World and socialist countries, is a product of a sense of confrontation with the capitalist camp. North Korea promoted the superiority of the socialist system by utilizing the tourism industry. As capitalist tourism is regarded as an "unplanned, anarchic, and exploitative means of making money," and socialist tourism is defined as being managed and operated in a planned manner by the nation's unified leadership, North Korean tourism industry has been excluded from profit-seeking and moving away from the economic sphere.
The change in North Korea's tourism policy was detected in the latter half of the Kim Il-sung era. Measures to allow foreign investment in the tourism industry through the enactment of the Joint Venture Law (JVL) in 1984 or to allow the establishment of tourism companies in the special economic zone in 1991 have great significance. During this period, North Korea made efforts to promote North Korea tourism on the international stage by reorganizing the nation's tourism organization, establishing a tourism support system, and joining the World Tourism Organization. However, the World Festival of Youth and Students in 1989 seriously damaged the national finances due to free tourism for young people in the socialist world and large-scale tourism development without economic profit. It was one of the causes of the march of hardship.
Despite the Kim Jong-il regime's strong negative perception of tourism, North Korea advocated "the Spirit of Korea-Nation-First" to overcome the period of hardship and promoted South-North Korea tourism cooperation including Mt. Kumgang tour from 1998. The Mt. Kumgang tour project was carried out by South Korean capital, and North Korea was able to secure foreign currency in a short period of time in return for the tourism project. Later, when the Mt. Kumgang tour project was suspended due to accidental causes, North Korea sought tourism cooperation through the restoration of relations between North Korea and China. In fact, this paper shows that tourism cooperation between North Korea and China is sufficiently replacing tourism cooperation between South and North Korea.
Meanwhile, An analysis of this study's main question, 'Why did North Korea under Kim Jong-un emphasize fostering tourism rather than normalizing basic industries is as follows. As a result of North Korea's adherence to its "independent national economic line" since the Korean War, it is showing a serious collapse of its industrial base, led by heavy chemical industry. Despite the remarkable development of the North Korean economy in the 1960s, the balance and the organic connectivity between industrial sectors were damaged. Efficient development became impossible. North Korea under Kim Jong-un is seeking a breakthrough in the tourism industry to solve the problem, and is putting its resources to normalize its industrial base.
Based on the overseas cases of this study, socialist countries in the transition period tended to create foreign currency income with the opening of their economies, first fostering tourism industries that are likely to grow rapidly in a relatively short period of time. The actual opening of the tourism industry facilitated the inflow of foreign capital and overcame the economic crisis caused by the collapse of socialism. North Korea can also refer to some of the implications presented in the study.
North Korea under Kim Jong-un officially maintained a self-reliant economy and a socialist tourism system. On the contrary, North Korea established tourism development zones across the country and designated Wonsan-Kumgangsan International Tourist Region in the hope of inflow of overseas tourism capital. Above all, when the inflow of overseas investment was cut off because of international sanctions, Samjiyeon, Yangdeok, and Wonsan Galma tourist districts were developed by injecting their own capital. This was a new experiment for North Korea.
On th basis of North Korea's investment proposals, this study attempted to conduct a quantitative analysis on the annual ripple effect (production inducement effect, value added effect, and job creation effect) of tourists visiting the Wonsan-Kumgangsan International Tourist Region. This study is meaningful in that it attempted to understand the economic effects of the tourism industry even in the face of a lack of data from North Korea. If North Korea's special tourist zones are activated through attracting overseas investment, it is expected to play a role in driving industrial growth in other sectors such as manufacturing, agriculture, and light industry in the North.
A major change in North Korea during the Kim Jong-un era was the application of the concept of profitability to the tourism industry and the acceptance of tourism as an economic field. North Korea wanted to open up its tourism industry to the world and is mobilizing state finances and manpower to develop tourism products that are different from the past and improve tourism infrastructure. Kim Jong-un will continue to visit construction sites of tourist attractions. Existing controls are also gradually being eased, such as simplifying the immigration of foreign tourists or expanding the number of areas where tourists can visit. This is based on expectations and confidence that tourism revenue can be generated from China and the West. In fact, even under international sanctions, tourism revenue through China is the mainstay of the North Korean economy as the Chinese group tourism is promoted by strengthening tourism cooperation between North Korea and China.
Economic factors are not the only thing North Korea expects through tourism. From the perspective of this research, Kim Jong-un aims to show off his achievements as a supreme leader internally and his superiority in the system through the achievements of the tourism industry, and to convey his image as a normal country externally. North Korea hopes tourism will ease its negative image and international pressure on the communist country. Therefore, Even if the economic goal of acquiring foreign currency through the tourism industry is not achieved as originally intended, this is also meaningful if such a political goal is achieved.
North Korea is at a crossroads in whether it will be able to normalize the industries that collapsed after the march of hardship and return to the 1960s when its independent economy was enjoying a golden age. In the process, North Korea needs to be careful not to let tourism cooperation between North Korea and China lead to subjugation of the Chinese economy. South Korea also needs measures to prevent North Korea from being subjugated economically by depending on North Korea-China tourism cooperation regardless of inter-Korean tourism cooperation. North Korea's wisdom is required to take the initiative in choosing to open up tourism to the world.