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Korea, North

Introduction to Korea, North

Japan occupied Korea in 1905 following the Russo-Japanese War; five years later it formally annexed the entire peninsula. Following World War II, Korea was split, with the northern half coming under Communist domination and the southern portion becoming Western-oriented. KIM Chong-il has ruled North Korea since his father and the country's founder, president KIM Il-song, died in 1994. After decades of mismanagement, the North relies heavily on international food aid to feed its population while continuing to expend resources to maintain an army of about 1 million. North Korea's long-range missile development and research into nuclear, chemical, and biological weapons and massive conventional armed forces are of major concern to the international community. In December 2002, North Korea repudiated a 1994 agreement that shut down its nuclear reactors and expelled UN monitors, further raising fears it would produce nuclear weapons.

Government

Capital:

Pyongyang 

Independence:

15 August 1945 (from Japan) 

National holiday:

Founding of the Democratic People's Republic of Korea (DPRK), 9 September (1948) 

Economy

Economy overview:

North Korea, one of the world's most centrally planned and isolated economies, faces desperate economic conditions. Industrial capital stock is nearly beyond repair as a result of years of underinvestment and spare parts shortages. Industrial and power output have declined in parallel. The nation has suffered its tenth year of food shortages because of a lack of arable land, collective farming, weather-related problems, and chronic shortages of fertilizer and fuel. Massive international food aid deliveries have allowed the regime to escape mass starvation since 1995-96, but the population remains the victim of prolonged malnutrition and deteriorating living conditions. Large-scale military spending eats up resources needed for investment and civilian consumption. In 2003, heightened political tensions with key donor countries and general donor fatigue threatened the flow of desperately needed food aid and fuel aid as well. Black market prices continued to rise following the increase in official prices and wages in the summer of 2002, leaving some vulnerable groups, such as the elderly and unemployed, less able to buy goods. The regime, however, relaxed restrictions on farmers' market activities in spring 2003, leading to an expansion of market activity. 

GDP:

purchasing power parity - $29.58 billion (2004 est.) 

GDP - composition by sector:

agriculture: 30.2%
industry: 33.8%
services: 36% (2002 est.)

Agriculture products:

rice, corn, potatoes, soybeans, pulses; cattle, pigs, pork, eggs 

Industries:

military products; machine building, electric power, chemicals; mining (coal, iron ore, magnesite, graphite, copper, zinc, lead, and precious metals), metallurgy; textiles, food processing; tourism 

Transportation

Waterways:

2,250 km
note: most navigable only by small craft (2004)

Pipelines:

oil 136 km (2003)

Ports and harbors:

Ch'ongjin, Haeju, Hungnam (Hamhung), Kimch'aek, Kosong, Najin, Namp'o, Sinuiju, Songnim, Sonbong (formerly Unggi), Ungsang, Wonsan

Merchant marine:

total: 203 ships (1,000 GRT or over) 921,577 GRT/1,339,929 DWT
by type: bulk 6, cargo 166, combination bulk 2, container 3, liquefied gas 1, livestock carrier 3, multi-functional large load carrier 1, passenger/cargo 1, petroleum tanker 11, refrigerated cargo 6, roll on/roll off 2, short-sea/passenger 1
registered in other countries: 4 (2003 est.)
foreign-owned: Albania 1, Belize 1, Bolivia 1, Cambodia 3, Cyprus 1, Egypt 3, Germany 1, Greece 4, Italy 1, Lebanon 2, Marshall Islands 1, Pakistan 1, Portugal 1, Romania 8, Saint Kitts and Nevis 1, Syria 9, Tanzania 1, Tunisia 1, Turkey 5, Ukraine 2, United States 3

Airports:

78 (2003 est.)

Heliports:

19 (2003 est.)

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