North Korea has shown the great reduction in the quantity of foreign trade since the collapse of the former USSER and the countries of Eastern Europe which was the major trade partners. The trade deficit of North Korea has gradually increased, which i...
North Korea has shown the great reduction in the quantity of foreign trade since the collapse of the former USSER and the countries of Eastern Europe which was the major trade partners. The trade deficit of North Korea has gradually increased, which is acting as the man cause of its economic depression. North Korea devote all of its energy to the imort of grains and the introduction of crude oil for processing on consignment to overcome severe food shortage and energy shortage, deepening the degree of dependency on foreign countries further.
The important fact is that South Korea has overtaken Russia and is emerging as the third trading partner next to China and Japan in terms of the quantity and size of trade. Especially, the size of trade exchange of agricultural products between South Korea and North Korea is drestically increasing.
South Korea and North Korea have several favorable conditions that they can expand mutual interests by activating the trade of agricultural products it. South Korea and North Korea fail to get out of the deadlock in trade because of economic difficulty and political and diplomatic factors, but there is a high possibility that they may expand trades on mutually complementary items in the future.