Abstract   

This paper examines North Korea’s economic strategy under the Sun-Goon (military-first) system, shows the reasons for inevitable future failure of the present strategy, and discusses the measures for co-evolution of the Two Koreas and the international community. Since 2001, as the Sun-Goon was on the rise, North Korea has promoted economic strategy focusing mainly on the defense industry. However, there was a structural limit on the economic policy concentrated on political survival rather than economic growth and development, and particularly, it was applicable only to the domestic economy and did not include the strategy for external economic relations which was crucial for vitalizing economy. Therefore, to avoid economic decline and collapse of the system, and to realize growth and development, Pyongyang needs to abandon Sun-Goon, reform the system, and open its market. The role of South Korea and the international community in that process is to provide a friendly environment to North Korea’s implementation and reform of its advanced strategy, and to actively support capital, information and technology. It is also important to prevent the fatigue from reform and the expansion of the negative notions toward the transition. As being supportive as possible to the transition, South Korea should make extra efforts to take the opportunity for joint prosperity of the Two Koreas.

The full text in Korean is available here