TWO KOREAS

Kseniia Sheiko

CIA$U g1+, Analysing Current Economic Issues, 12, University

John Graham

13 September 2023
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Country North Korea South Korea

Output Specific output is not so orientated Output is consumer orientated, so

on people, only for basic things to they mostly orientate their

survive. Their main aim is the production to consumer needs, that

military. In comparison with South’s, is easy to see with high exports, as

North’s Koreas they have low countries are willing to by that

Exports, what seems like they are not much.

interested in producing something

others are interested in and they are

much lower than imports.

Productive As far as I know, there is little South Korea is effectively using

Efficiency production due to the ineffective their resources with so little

usage of resources and not using all territory by having that much

the potential. Not that much of a production. Quite low

production amount, due to small in unemployment rate, high

comparison to purchasing power. production amount, relying on all

The unemployment rate would be the money going though purchases,

also important to say precisely, but it despite small territory.

is unavailable.

Income Almost all income goes for military Income distribution is balanced

Distribution purposes, so it is not that great for between all life aspects due to

people. Government budget is lower economy growth and the budget is

than spendings, therefore it is not higher than spendings.

that great.

Business Cycle Quite stable, but not enough for a Not fully stable as every market

good life. It is actually fully economy, because of the inflation

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controlled by government and the and other factors, such as weather

government is the main or even the and all the factor that influence the

only businessperson in every sphere, economy and business stability.

therefore there is no such business

competition or etc.

Economic Growth Economic growth is about 4%, and it 4,15% growth rate that is fully

is quite great, however it was for estimated and is a great growth

2009, too long ago. rate.

Economic Measures North Korea South Korea

GDP (Purchasing Power

Parity) US $40 billion (2011) $2.289 trillion (2021)

GDP (Real Growth Rate) 4% (2009) 4.15% (2021)

GDP per Capita (PPP) US $1,800 (2011) $44,200 (2021)

Agriculture: 23% agriculture: 2.2%(2017)

GDP Composition by Industry: 43.3% industry: 39.3% (2017)

Sector Services: 33.6% services: 58.3% (2017)

Labour Force by Agriculture: 35% household consumption: 48.1%

Occupation Industry Services: 65% (2017)

(2008) government consumption: 15.3%

(2017)

investment in fixed capital:

31.1% (2017)

investment in inventories: 0%

(2017)

exports of goods and

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services: 43.1% (2017)

imports of goods and services: -

37.7% (2017)

Unemployment Rate Not Available 3.53% (2021)

Population below
14.4% (2016)
Poverty Line Not Available

revenues: $378.552 billion

(2019)

Government Budget Revenues: US $3.2 billion expenditures: $372.412 billion

(2005) Expenditures: US $3.3 billion (2019)

Inflation Rate Not Available 2.5% (2021)

Exports US $2.557 billion (2010) $771.202 billion (2021)

Imports US $3.529 billion (2010) $698.103 billion (2021)

In my opinion, even if Koreas comparison is a great comparison between the Market and

Command economy, North Korea is quite unknown to us. All the statistics are already old, lots

of things are unavailable and there are a lot of illegal trades that are not mentioned in official

statistics. Therefore, it is also a bad example to understand the economy.

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Bibliography