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COUNTRY BRIEFS


OVERVIEW

The Democratic People's Republic of Korea (DPRK , also known as North Korea) is a highly centralised communist state.  It is one of the poorest countries in the world, and relies heavily on external assistance.  Despite this, it maintains one of the largest militaries in the world and devotes significant resources to nuclear weapons and ballistic missile development programs, which pose a serious threat to regional security and a major challenge to global non-proliferation objectives. 

Australia maintains diplomatic relations with the DPRK , but the relationship is severely constrained by Australia's concerns over the DPRK 's nuclear weapons and missile programs.  The relationship was further strained by the DPRK 's sinking of the Republic of Korea (ROK , also known as South Korea) naval vessel, the Cheonan ,in March 2010, the DPRK 's shelling of the ROK 's Yeonpyeong Island in November 2010 and the DPRK 's disclosure of a uranium-enrichment program in November 2010.  Australia continues to work closely with the UN, the ROK , the United States, Japan and other countries in support of DPRK denuclearisation and maintains strong sanctions against the DPRK .

Australia's bilateral aid program to the DPRK has been suspended since 2002 due to concerns about the DPRK 's nuclear weapons program.  Australia's aid to the DPRK is therefore limited to humanitarian assistance provided to the DPRK through the UN and other international agencies.  Australia continues to raise its concerns over social conditions and human rights violations in the DPRK . 

On 19 December 2011, the DPRK announced that its supreme leader, Kim Jong-il, died on Saturday 17 December 2011 after a heart attack.  Kim Jong-il's third son, Kim Jong-un, has been confirmed as his successor.  The Australian Government is prepared to take forward our bilateral relationship with the new DPRK leadership, but for this to occur, Australia would need the DPRK to make substantial progress towards denuclearisation and cease all provocative actions that reduce the stability of the Korean Peninsula.

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HISTORY

The Korean Peninsula was first unified as a sovereign state in 918 under the Goryeo Dynasty (the source of the English name "Korea").  In 1392, the Joseon Dynasty took power, and ruled until it was replaced by the Korean Empire in 1897.  From 1910 to 1945, the Korean Peninsula was subject to colonial rule by Japan.  Following Japan's defeat in World War II, Korea was temporarily divided into two occupied zones, with the United States administering the southern half and the Soviet Union administering the area north of the 38th parallel.  Initial plans to unify the peninsula quickly dissolved due to domestic opposition and the politics of the Cold War.  In 1948, new governments were established in the two occupied zones – the ROK and the DPRK .

From the outset, the nominally democratic ROK and the communist DPRK operated under vastly different political, economic and social systems.  Unresolved tensions created by the division led to the Korean War of 1950-53, which was sparked when the DPRK launched an invasion of the ROK .  Australia committed more than 18,000 troops to serve under United Nations (UN) command in support of the ROK , and 339 Australians died in the war.  The 1953 armistice ended the conflict, though a more comprehensive peace agreement has not been negotiated and technically, the two sides remain at war.

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POLITICAL OVERVIEW

The DPRK has a centralised government, strictly controlled by the communist Korean Workers' Party (KWP), to which all government officials belong.  The government operates under the national guiding principles of juche "self-reliance", and songun "military first".

Important positions in the government, economy and the military are held by party members or officials, and KWP Secretaries generally exercise greater authority over policy and administrative issues than government Ministers.  Although open to mass membership, access to the Party is denied to those without a 'reliable' class background. Official party membership is estimated at over three million.

The Supreme People's Assembly (SPA) is the highest legislative body under the DPRK Constitution.  In theory, the SPA appoints the President, approves the national budget, enacts laws and sets forth the country's basic policies, including foreign and defence policy.  In reality, the SPA serves to ratify KWP decisions.

Three key entities control the DPRK government: the Cabinet oversees government ministries and is the dominant administrative and executive agency; the Politburo of the Central People's Committee is the top decision-making body of the KWP and is responsible for directing Party affairs on a day-to-day basis; and the National Defence Commission (NDC) is the DPRK 's highest office of state and is responsible for external and internal security and asserts significant influence over policy-making.

The Kims

The DPRK 's first leader was Kim Il-sung, revered in the DPRK as the 'Great Leader'.  Kim Il-sung fought with Chinese communists in the 1930s against the Japanese occupation, before moving to the Soviet Union in 1940, where he received training and backing.  On Japan's defeat in 1945, Kim Il-sung was installed by the Soviets as head of the Provincial People's Committee, and in 1948, on the proclamation of the DPRK became its Premier.  Kim Il-sung held all key party positions including KWP General-Secretary, Member of the Presidium of the Politburo and Chairman of the Central Military Commission until his death in 1994, when he was designated "Eternal President".  Kim Il-sung's oldest son, Kim Jong-il, was appointed General-Secretary of the KWP in 1997.  

From 1994, Kim Jong-il, was the DPRK 's de facto head of state, exercising executive power as Chairman of the NDC, as well as General Secretary of the KWP and Supreme Commander of the People's Armed Forces until his death, reportedly on 17 December 2011.  Prior to his death, Kim Jong-il had been preparing the way for his third son, Kim Jong-un, to follow him as supreme leader of the DPRK .  In September 2010, Kim Jong-un was appointed to the KWP's Central People's Committee and elected Vice Chairman of the KWP's Central Military Commission.  He was also promoted to the military rank of General.  Following Kim Jong-il's death, Kim Jong-un was quickly declared the Great Successor and Supreme Commander of the Korean People's Army.  Kim Jong-un is also likely to assume his father's positions as Chairman of the ruling Korean Worker's Party and the National Defence Commission in due course.  At each of the formal funeral events, Kim Jong-un was surrounded by senior regime figures, most notably his uncle, Jang Song-taek, and Ri Yong-ho (Chief of the General Staff of the Korean People's Army).  

Key political figures

-- Kim Jong-un: Supreme Commander of the People's Armed Forces; Vice Chairman of the KWP's Central Military Commission; member of the KWP's Central People's Committee; third son of the DPRK 's former leader, the late Kim Jong-il
-- Jang Song- taek: Vice Chairman of the NDC; uncle to Kim Jong-un through his marriage to Kim Jong-il's sister, Kim Kyong-hui
-- Ri Yong-ho: Chief of the General Staff of the Korean People's Army
-- Kim Yong-nam: President of the SPA Presidium (performs formalities of head of state); not related to Kim Jong-il
-- Choe Yong Rim: Premier
-- Pak Ui-chun: Minister for Foreign Affairs

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ECONOMIC OVERVIEW

The DPRK has a centrally planned economy that, for the most part, operates outside international economic, banking and trade systems.  Food rations, housing, healthcare and education are controlled by the state.  Taxes were abolished in 1974 although mandatory contributions of food and other products remain a fact of life.  The DPRK is one of the poorest countries in the world, and has fallen far behind the ROK in economic development and living standards (per capita GDP has been estimated at one-sixteenth that of the ROK ).  The DPRK relies heavily on humanitarian aid and other forms of external assistance.  Outdated infrastructure and poor energy supply remain serious obstacles to economic growth.

During the early part of the last decade, there was a slight relaxation of economic controls, increased toleration for a small private sector, and some modest reforms, including price, wage and agricultural reforms in 2002.  However, in October 2005, the DPRK government reasserted central control over grain distribution and food rationing and in November 2008, announced restrictions on the operations of markets.  In December 2009, the DPRK redenominated its currency at a rate of 100 to 1, with severe limits on the amount of old currency that could be converted.  The measure resulted in increased inflation and the obliteration of savings.  The government simultaneously announced even tighter state control of markets, regulations on consumption, and a ban on the possession or use of foreign currencies.

Contributing to the DPRK 's poor economic performance is the disproportionately large share of GDP assigned to the military.  The DPRK has placed a high priority on maintaining a strong defence capability, with most aspects of the economy and society revolving around defence-related programs.  For many years, Pyongyang has mounted an extensive effort to prepare the population for war and has consistently proclaimed its overriding objective of reunifying the Korean Peninsula, by force if necessary.  The DPRK maintains an active-duty military force of up to 1.2 million personnel, and possibly 4.5 million reservists, one of the largest in the world.

Economic statistics for the DPRK are difficult to obtain due to the closed nature of its society.  In 2010, the DPRK 's GDP was estimated at US$26 billion.  The DPRK has expanded international trade over the last decade, but the total value remains low, estimated at US$4.2 billion in 2010.    

China is the DPRK 's principle trading partner, accounting for around 60 per cent of the DPRK 's total trade in 2010 (mostly anthracite coal and other resources).  The ROK accounted for around 31 per cent of the DPRK 's total trade in 2010, with the majority associated with the Kaesong Industrial Complex (KIC).  The KIC is where the majority of inter-Korean commercial cooperation takes place and is a special economic zone established by the DPRK and the ROK close to the demilitarized zone that separates the DPRK and the ROK .  The operation of the KIC has, however, been increasingly problematic and hostage to political manoeuvring by the DPRK . 

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HUMANITARIAN SITUATION

The DPRK faces regular natural disasters and ongoing humanitarian emergencies, including food shortages.  In 1995, record floods and fallout from the collapse of the intra-communist bloc trading system caused severe food shortages which some sources estimate resulted in the death of up to 2 million DPRK citizens from starvation and hunger-related illnesses.  Widespread flooding hit the DPRK again in mid-August 2007, causing significant damage.  While the situation was not as serious as during the peak of the crisis in 1996-97, chronic food shortages are likely to continue for the foreseeable future.  In February 2011, a UN-led World Food Program assessment visited the DPRK in response to requests for food aid from the DPRK .  The WFP report found that more than six million vulnerable people were in need of food assistance, due to a substantial reduction of agricultural production and commercial imports, as well as a decrease or curtailment of humanitarian assistance.  The DPRK is heavily reliant on international humanitarian assistance, but this has been in decline since 2008, when its two main aid donors, the ROK and the United States, suspended humanitarian aid in response to concerns over the DPRK 's activities.

Resource shortages and inadequate sanitation facilities have led to serious public health concerns, including the re-emergence of diseases such as tuberculosis and malaria.  Existing health services are unable to tackle increasing health problems and the prevalence of acute malnutrition.  In 2010, the DPRK also suffered a severe outbreak of foot and mouth disease in cattle and pigs, which continues to hinder agricultural production.

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SOCIAL CONDITIONS AND HUMAN RIGHTS

Australia continues to raise its grave concerns over serious human rights violations in the DPRK .  The UN Special Rapporteur on the Situation of Human Rights in the DPRK has noted that violations extend to the systematic and daily denial of basic freedoms, including freedoms of expression, religion and association, extensive torture, public executions, collective punishment (including imprisonment of the families of dissenters), and the extensive use of forced labour camps with abhorrent conditions.

The DPRK Government subjects its citizens to a pervasive program of indoctrination and close surveillance.  Although some households have radios and television sets, reception is restricted to government broadcasts.  All mass organisations are directed at supporting the regime.

Internal travel in the DPRK is strictly controlled, with a travel pass required for any movement outside one's hometown.  Permission is required in order to enter or reside in Pyongyang, and foreign travel is limited to officials, sporting teams or trusted artists and performers.  Emigration is not allowed and tourism by North Koreans, even to other communist countries, is non-existent outside the elite (and even within the elite, it is limited).  Limited tourism by foreigners to the DPRK has, however, been permitted.

The DPRK has acknowledged that in the 1970s and 1980s, it abducted a number of Japanese citizens who were forced to teach Japanese language skills to DPRK military and government officials.  While some of the victims have been returned to Japan, the two countries are yet to agree on the number of people affected.  The Australian Government supports Japan's calls for the DPRK to provide a full accounting of the issue.   

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FOREIGN RELATIONS AND THE DPRK NUCLEAR ISSUE

The DPRK 's nuclear weapons and missile programs pose a grave threat to regional security and a serious challenge to international non-proliferation efforts.  Australia continues to work closely with the United Nations, the ROK , the United States, Japan, China and other countries in support of international efforts to bring about an end to the DPRK 's nuclear weapons and missile programs.

It has been reported that the DPRK first began to pursue nuclear technology as early as 1956. The DPRK has completed two nuclear reactors, both located at the Yongbyon Nuclear Scientific Research Centre.  The first, a research reactor, was supplied by the Soviet Union and completed in 1967.  While the second, the DPRK 's main plutonium-producing reactor, was finished in 1985. 

With the collapse of the Soviet Union, the DPRK recognised the need to improve relations with the United States.  It sought a non-aggression pact, and through the 1980s and 1990s, took steps towards denuclearization:  in 1985, the DPRK joined the Nuclear Non-Proliferation Treaty (NPT) as a non-nuclear weapons state;  and in 1992, the DPRK and the ROK agreed the Joint Declaration for a Non-Nuclear Korean Peninsula.  But in 1993, tensions escalated when the DPRK failed to implement an agreement with the International Atomic Energy Agency (IAEA) for inspection of the DPRK 's nuclear facilities, and threatened to withdraw from the NPT.  An international standoff followed, with the UN urging the DPRK to cooperate with the IAEA.  In 1994, the DPRK and the United States signed an Agreed Framework aimed at ending the DPRK 's nuclear weapons programs.  Between 1994 and 2002, the DPRK and the United States worked together to fulfil commitments under the Agreed Framework.

In 2000, the DPRK established or restored diplomatic relations with a number of countries, including Australia, and was also accepted into the ASEAN Regional Forum.  Pyongyang hosted an historic inter-Korean leaders' summit in June 2000, which resulted in a landmark Joint Statement by the leaders of the DPRK and the ROK .

The DPRK 's international relations deteriorated following comments by the United States in October 2002 that DPRK officials had admitted the DPRK was conducting a covert highly-enriched-uranium program in pursuit of nuclear weapons.  In December 2002, the DPRK removed IAEA surveillance equipment from its Yongbyon nuclear facilities, and announced its intentions to re-start its nuclear program to provide itself with a deterrent force in the face of the United States' 'hostile policy'.  In January 2003, the DPRK announced its withdrawal from the NPT.

Trilateral talks between the DPRK , the United States and China were held in Beijing in April 2003, during which the DPRK admitted to having a nuclear weapon capability.  To find a peaceful resolution to the DPRK nuclear issue, the Six-Party Talks were initiated in August 2003 between the DPRK , the ROK , China, the United States, Japan and Russia. 

In February 2005, the DPRK announced that it had manufactured nuclear weapons and postponed indefinitely its participation in the Six-Party Talks.  In March 2005, the DPRK declared itself a 'fully-fledged nuclear weapons state' and announced it would no longer be bound by a 1999 voluntary moratorium on ballistic missile testing. 

In July 2005, the DPRK returned to the Six-Party Talks.  The fourth round concluded in September 2005 with all parties endorsing a Joint Statement of Principles in which the DPRK committed to abandon its nuclear weapons program and return to the NTP and IAEA safeguards.  In return, the other parties agreed to provide economic cooperation and energy assistance.

In July 2006, the DPRK conducted a number of ballistic missile tests, including tests of its long-range Taepodong 2 missile.  In response, the United Nations Security Council (UNSC) adopted Resolution 1695, which included restrictions on the sale of missile and WMD-related technologies to the DPRK .

On 9 October 2006, the DPRK conducted its first nuclear test.  In response, on 14 October 2006, the UNSC unanimously adopted Resolution 1718.  The Resolution imposed a ban on trade with the DPRK in military and WMD-related goods, a ban on the provision of associated training or assistance and a ban on the export of luxury goods to the DPRK .  Australia fully implemented these sanctions and put in place additional autonomous measures (refer below).

The fifth round of the Six-Party talks resumed in February 2007, and concluded with all parties agreeing to a statement on Initial Actions for Implementation of the Joint Statement, in which the DPRK agreed to shut down and seal its Yongbyon nuclear facility and allow the return to the DPRK of IAEA monitoring and verification personnel.   In July 2007, the IAEA announced that the DPRK had shut down and sealed its Yongbyon nuclear facilities.

On 26 June 2008, the DPRK submitted a declaration of its nuclear programs, and, in October 2008, United States and DPRK officials agreed to a series of measures to verify the DPRK 's declaration.  In October 2008, the United States removed the DPRK from its list of state sponsors of terrorism.  The verification measures agreed were intended to form the basis of a protocol to be agreed in the Six-Party Talks.  However, talks in Beijing in December 2008 failed to agree on any such verification protocol.  The Six-Party Talks have not been convened since. 

On 5 April 2009, the DPRK launched a long-range rocket, claiming to have put a satellite into orbit.  Following the launch, a number of world leaders, including then-Prime Minister Rudd, issued statements condemning the DPRK 's missile launch as a breach of UNSC Resolution 1718, and urging the UNSC to immediately consider further action.  The UNSC responded by adopting a Presidential Statement which condemned the launch as a contravention of Resolution 1718.  The DPRK condemned the Presidential Statement, announced it would not participate further in Six-Party Talks, and pledged to strengthen its 'nuclear deterrent' capability.

On 25 May 2009, the DPRK announced it had conducted a second nuclear test and followed with a number of short-range missile tests.  The UNSC responded to the claimed nuclear test by adopting Resolution 1874 on 12 June 2009.  The Resolution built on Resolution 1718 sanctions, and included an expanded arms embargo, financial measures and provisions for the inspection and interdiction of vessels suspected of carrying banned cargo.  Australian regulations were amended in July 2009 to give effect to the mandatory provisions of Resolution 1874.

Speculation of a possible resumption of the Six-Party Talks increased following the visit in December 2009 to the DPRK by the US Special Representative for North Korea, Ambassador Stephen Bosworth.  He reported that the two sides had identified some common understandings on the need for, and the role of, the Six-Party Talks and the importance of implementing the 2005 Joint Statement, but it remained to be seen when and how the DPRK would return to the Talks.

In March 2010, China's Special Representative for Korean Peninsula Affairs Wu Dawei pushed for the Six-Party talks to resume in the first half of 2010, but hopes were dashed following the sinking of the ROK naval vessel Cheonan by the DPRK .

On 26 March 2010, the ROK naval vessel the Cheonan sank, killing 46 of the 106 crew on board. A ROK -led investigation involving experts from the United States, the United Kingdom, Sweden, Canada and Australia found that a torpedo fired from a DPRK submarine had sunk the Cheonan. Then-Prime Minister Rudd joined leaders from around the world in condemning the attack as a flagrant violation of the UN Charter and the 1953 Korean Armistice Agreement.

On 12 November 2010, Dr Siegfried Hecker (from Stanford University in the United States) visited the Yongbyon Nuclear Complex and was reportedly shown a light-water nuclear reactor in the early stages on construction and a new industrial-scale uranium-enrichment facility with 2000 centrifuges.  Australia condemned the DPRK 's actions and called for a strong response in the United Nations Security Council.

On 23 November 2010, the DPRK launched an artillery attack on the ROK 's Yeonpyeong Island, which killed four and wounded 55 citizens.  Tensions peaked on the peninsula when the ROK conducted subsequent live-fire exercises in late December.  The DPRK threatened to retaliate, but did not.  

Inter-Korean tensions eased in 2011 and dialogue with the DPRK resumed, ROK and DPRK nuclear envoys met on 20 July in Bali and 21 September in Beijing.  US- DPRK bilateral talks were held from 27 to 28 July in New York, 24 to 25 October in Geneva and from 23 to 24 February 2012 in Beijing. 

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BILATERAL RELATIONSHIP

Australia and the DPRK established diplomatic relations in 1974.  The DPRK opened an Embassy in Canberra in December 1974, and Australia opened an Embassy in Pyongyang in April 1975.  However, diplomatic relations were interrupted in November 1975, when the DPRK withdrew its Embassy from Canberra and expelled Australian Embassy staff from Pyongyang.

In the period after 1975, Australia maintained limited contact with the DPRK .  All contact ceased during the nuclear crisis (1993-94) on the Korean peninsula, but resumed with a number of unofficial and privately sponsored bilateral visits in the late 1990s.

In May 2000, Australia resumed diplomatic relations through the Australian Embassy in Beijing.  The DPRK re-opened an Embassy in Canberra in May 2002, but closed it for financial reasons in January 2008.  The DPRK 's Embassy in Jakarta has been formally accredited to Australia since February 2012.  Australia's Ambassador in Seoul has been accredited to the DPRK since August 2008.

Australia suspended progress in its bilateral relations with the DPRK in October 2002 over Australian concerns about the DPRK 's nuclear weapons program.  The Australian Government has fully implemented UN sanctions against the DPRK and also put in place autonomous sanctions (refer below).  The Australian Government hopes to take forward our bilateral relationship with the DPRK , but for this to occur, Australia would need the DPRK to make substantial progress towards denuclearisation and cease all provocative actions and rhetoric that decrease the stability of the Korean Peninsula.

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AID

Australia suspended bilateral development assistance to the DPRK in 2002, following revelations about its nuclear program.  Australia's aid to the DPRK is therefore limited to humanitarian assistance provided through multilateral organisations.  In response to the UN's April 2011 appeal, Australia made available $10 million ($8.5 million through the World Food Program and $1.5 million through UNICEF).  Since 1994, Australian humanitarian assistance has totalled $78 million, which has gone towards food aid, water and sanitation, and disaster management areas.  Australia has repeatedly urged the DPRK to ensure that multilateral humanitarian organisations are provided with appropriate conditions for aid monitoring and delivery so that Australia's humanitarian assistance can continue uninterrupted through these channels.

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COMMERCIAL LINKS

Australian companies can pursue business opportunities in the DPRK , or with DPRK companies, provided that they do not contravene existing export control regulations and sanctions against the DPRK (http://www.dfat.gov.au/un/unsc_sanctions/north-korea.html).  Before initiating business dealings, Australian companies are advised to conduct thorough due diligence and seek appropriate independent legal advice to determine if transactions or respective DPRK entities will be subject to sanctions.  Australian companies should also be aware of the poor payments record of many DPRK agencies in past commercial ventures.

Two-way trade between Australia and the DPRK is negligible.

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SANCTIONS

Australia has fully implemented UN sanctions against the DPRK under UNSC Resolutions 1718 (adopted 14 October 2006) and 1874 (adopted 12 June 2009).  In addition, Australia has imposed a number of autonomous measures against the DPRK , targeted at the DPRK 's missiles and weapons of mass destruction programs, and to put pressure on the DPRK regime to abandon those programs. 

In September 2006, Australia implemented autonomous financial sanctions against 12 companies and one individual connected with financing the DPRK 's development of nuclear and other weapons of mass destruction programs.  In October 2006, Australia imposed additional autonomous sanctions in response to the DPRK 's nuclear test, including a ban on DPRK -flagged vessels from entering Australian ports and a general ban on the issuance of visas to DPRK nationals.

Further information on UNSC sanctions on the DPRK that apply under Australian law (http://www.dfat.gov.au/un/unsc_sanctions/north-korea.html) .

Further information on bilateral sanctions imposed by Australia against the DPRK (http://www.dfat.gov.au/un/unsc_sanctions/north-korea-bilat.html)

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Last Updated: February 2012

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