GDP comparison between South and North Korea 2004-2023

In 2023, South Korea's nominal gross domestic product (GDP) reached approximately 2,401 trillion South Korean won, while North Korea's amounted to about 40.2 trillion South Korean won. Consequently, South Korea's nominal GDP was approximately 60 times larger than that of North Korea during that year. Moreover, North Korea's GDP growth has been notably minimal when compared to that of South Korea.

North Korea's economic development

North Korea's economy is centered around its capital city and military, with particular emphasis on the expansion of its nuclear capabilities in recent decades. Roughly 98 percent of foreign trade has been with China in the past decade, from whom North Korea imports large volume of mechanical and electronic goods. Food shortages, exacerbated by the Covid-19 pandemic, are a reoccurring issue for North Korea, as poor harvests, international sanctions, and a downturn in inter-Korean trade have created sourcing problems - the full extent of this issue remains unknown, but it is estimated that almost half the population is undernourished.

Kaesong Industrial Complex

The Kaesong Industrial Complex project began in 2000 and was a crucial part of South Korea's efforts to improve relations with North Korea. It aimed to foster cooperation between the two Koreas and promote stability in the region. The industrial park, located in Kaesong, North Korea, was intended to provide a platform for small and medium-sized South Korean companies. South Korea would provide the necessary capital and infrastructure, while North Korean workers would be tasked with manufacturing products, aiming to stimulate economic growth on both sides of the border. Unfortunately, the complex was affected by tensions between the two Koreas and shut down in 2016. It has not been reopened since.