North Korea: Trade Profile

Foreign Trade in Figures

North Korea has one of the least open economies in the world. The government does not intend to create an economy that conforms to market laws. The country is not readily accessible for foreign trade. Strict and unfavourable regulations imposed by the Government create trade barriers. North Korea's economic relations are limited to its neighbouring countries (China in particular, along Myanmar and Russia). The country's diplomatic isolation, which prevents it from developing economically, puts the nation at a great disadvantage. Nonetheless, its economic ties with China and Russia have deepened in the recent years with electrical insulators (12.3% of all exports), Electric batteries (11.9%) and Electricity (8.3%) being the main items exported. During the Covid-19 pandemic, North Korea imported mainly essential goods, such as soybean oil (12.6% of all imports), wheat flours (6.8%) and sugar (6.2%). Although North Korean exports bounced back by 30% in 2019, they were still almost five times lower than their level in 2017, prior to the UN Security Council vote to impose sanctions to significantly reduce trade with the country. During the pandemic, exports to China fell by 72% in the first half of 2020, whereas imports dropped by 67% in the same period.

The government spends massive amounts of money on military activities. Despite a national policy of self-sufficiency, the country imports much more than it exports, which results in a sizable trade deficit. Each year North Korea has to import large quantities of grain to compensate for the lack of domestic production.

While there is no complete set of statistics on North Korea's foreign trade, trade trends with China are particularly revealing. China is basically the country's only supplier, representing 88.3% of imports in 2020, and its primary market, taking 31% of exports, ahead of Myanmar (16.9%) and Nigeria with 4.6% (OEC, 2022).

In 2020, North Korea exported a total of 142 million USD and imported 556 million USD. It is also important to highlight that all publicly available statistics exclude trade in services, illicit activities, informal border trade as well as re-exports from third countries to North Korea via China.

To go further, check out our service Import Export Flows

Commercial Policy

International Economic Cooperation

The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).

Assessment of Commercial Policy

Average Customs Duty (Excluding Agricultural Products)

Trade Compliance

International Economic Cooperation

The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).

Useful Resources

National Organisation of Intellectual Property

Invention Office of the Democratic People's Republic of Korea.

 

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Latest Update: February 2023