It is well-known that North Korea has experienced economic difficulties for a long time since the Arduous March in the 1990s, during which the North Korean economy was set back and its socialist planned economy system resulted in a virtual failure. Despite a modest recovery that followed, the real GDP of North Korea has still not caught up with that of the 1990s until recently according to recent estimates of the Bank of Korea. Looking from the big perspective, such economic difficulties of North Korea stem from two main reasons: 1) inefficiency of centralized planned economic system (fundamental reason); and 2) the severe economic crisis in the 1990s due to accumulated inefficient practices and the actual collapse of the state finance. Such reasons led to a malfunction in the state-run production system, which should have been backed by national finance. In addition, the rationing system has long lost its function. Kim Jong-un inherited harsh economic situation from the start and now faces yet another economic threat?sanctions imposed on North Korea. Sanctions, which were only a slight burden at the initial period of the Kim Jong-un regime, have been intensified in their level. The Kim Jong-un regime has no choice but to seriously consider how to minimize their impact on North Korean economy. In the midst of challenging situation, however, the North Korean economy for the past five years under the Kim regime has relatively stayed afloat compared to the previous era. Then, there must be reasons that North Korea has maintained somewhat modest economic growth despite such difficult environment at home and abroad. To that end, this paper will: 1) first look back on North Korean economy for the past five years of the Kim Jong-un regime to identify and evaluate its characteristics, and 2) make a projection on the future direction that it would take going forward. The structure of this paper is as follows: Chapter 2 outlines the economic performance for the past five years under the Kim Jong-un regime; Chapter 3, 4, and 5 (state-run economy, marketization, external economy, respectively) review North Korea’s economic policy, identify the characteristics of North Korean economy, and analyze certain elements that had enabled such modest economic growth. Chapter 6, based on the findings revealed in previous chapters, lays out and assesses the characteristics of North Korean economy under the Kim regime and makes a projection on the future economic direction. The final Chapter 7, sums up all the discussions covered in this paper.

1. Introduction 2. Overview of Economic Performance for the Past Five Years under the Kim Jong-un Regime A. Moderate Economic Growth B. Price Stabilization C. Expansion of Foreign Trade 3. State-run Economy under the Kim Jong-un Regime for the Last Five Years A. National Development Strategy: Byungjin Policy of Nuclear and Economic Development B. Industrial Policy under the Kim Jong-un Regime C. Currency and Financial Policy under the Kim Jong-un Regime D. Reform of Economy Management System under the Kim Jong-un Regime: “Our Style Economic Management Methods” 4. Marketization and Policy Response A. Marketization Trends under the Kim Jong-un Regime B. Policy Response of the Kim Jong-un Regime 5. Foreign Economy for the Past Five Years of the Kim Jong-un Regime A. Characteristics of Foreign Trade under the Kim Jong-un Regime B. Sanctions and Foreign Trade C. Policy to Attract Foreign Capital: Centering on Policy of Economy Development Zone 6. Evaluation and Prospect of Economic Operation under the Kim Jong-un Regime A. Characteristics and Evaluation of the Economic Operation for the Past Five Years under the Kim Jong-un Regime B. Economic Outlook under the Kim Jong-un Regime 7. Conclusion