North and South Korea -- Page 7

Economic Activity in North Korea

After the North-South division, North Korea possessed most of the industrial plant, iron, and other ores, coal reserves, and hydroelectric dams developed during the Japanese occupation (1910-45). Damage inflicted during the Korean War was rapidly repaired with financial and technical assistance from the USSR and other Communist nations, and in the 1960s economic growth in the north took place at a rapid pace. By the end of the 1970s, however, economic growth had slowed, and the gross national product by the late 1980s was less than one-sixth that of South Korea. Under Communist control, all industry has been nationalized and agriculture collectivized.

Manufacturing and Power. In the early years of Communist control, expansion of the iron and steel, chemical, metallurgical, and machine industries was stressed in an effort to build an industrially self-sufficient and militarily strong economy. Since the 1970s, the emphasis was switched from heavy industries to the development of previously neglected consumer products. Major products currently include heavy machinery, trucks, tractors, bulldozers, farm implements, and electrical generators. The major industrial centers are Pyongyang, Chongjin, Kimchaek, and Kangson and Kangso (both near Pyongyang), which are all diversified metallurgical centers; Hungnam, the center of the petrochemical industry; and Sinuijul, a pulp and paper manufacturing center.

Electricity is produced at large hydroelectric power installations on the Yalu River and its tributaries in the north. Thermal electric plants fueled by coal and imported oil supplement hydroelectric power during the dry season and are extensively used in heavily industrialized areas. In 1989, North Korea had a kW capacity of 6.4 million, and 40.2 billion kW h were produced.

Agriculture, Fishing, and Forestry in North Korea

It is estimated that less than half of the total labor force works in agriculture, reduced from 75% in 1948. The chief crop is rice. Agriculture is heavily mechanized, partly in response to the labor shortage. Commercial fishing is a major industry along the east coast, and marine products are an important export. Commercial forestry is well developed, especially in the forested northern mountain regions.

Transportation. An extensive rail network links North Korea with China and also connects the country's major ports and cities. Road transportation is less well developed, but a major expressway connects Pyongyang with Kaesong. The Yalu and Taedong rivers are the principal waterways used for heavy freight, and an oil pipeline brings petroleum to North Korea from China's Taching oil field.