Does North Korea Have Any Exports?
Although it is expansive and resource-rich, North Korea has little exports in terms of goods and services. Even so, it has several resources that generate income for the country, including minerals, seafood, fashion, and wood. North Korea’s exports are almost exclusively sold to China; this is due to the tensions between North Korea and the industrialized countries of the West. Here is an in-depth look into North Korea’s exports.
Minerals
Minerals, along with rare earth elements, are the main exports North Korea has. Much of North Korea’s rare earth exports are found in the mined iron ore, copper, zinc, and other rare earth elements. However, due to the lack of infrastructure and technology in North Korea, most of these exports are sold to China, South Korea, and Russia, who process the raw materials into a more refined form and use it to manufacture goods.
Further, North Korea has reserves of gold, silver, graphite, coal, and salt that are exported for foreign income. For instance, North Korea exports approximately $1 million worth of coal and iron ore to China every year, which is important to the country’s economy. North Korea has also been exporting machine tools, electronics, and other products to the Middle East and other countries.
Seafood
North Korea also has a noteworthy seafood industry; however, the way this industry operates is quite different from other countries. North Korea frequently has a lack of refrigeration, which renders fish and other seafood unsellable, forcing them to sell the seafood in foreign markets at a huge loss. Nevertheless, North Korea does export some seafood products to China, Japan, and South Korea at a slightly inflated price.
North Korea also has a strong shipbuilding industry and has been actively trading in timber and wood products to Japan. This is mainly due to the fact that Japan has several lumber mills and factories, which they take advantage of when trading with North Korea. As with other products, North Korea’s exports to Japan generally come at a substantial price-markup, so they make a good profit.
Fashion and Textiles
North Korea has an expansive fashion and textile industry. This industry mainly supplies uniforms and work clothing for military personnel, as well as for special occasions such as New Year celebrations. North Korea also sells textiles to China, Japan and South Korea in small amounts, but a sizeable portion of these imports are also used domestically. North Korea’s textile industry is estimated to produce over $300 million annually.
North Korea has an advantageous position for the fashion and textile industry due to their close proximity to China and South Korea, who have larger and advanced textile industries. Additionally, North Korea’s fashion industry is quite well-developed, and products from the country can be found in many fashion outlets.
Wood and Timber
North Korea has been exporting wood and timber to China and even some countries in the Middle East. The wood and timber are mainly used in furniture, construction, and industrial applications. North Korean wood and timber exports to China alone are estimated to be at least $100 million annually.
Much of the wood and timber North Korea produces is of high quality and is highly sought after. The country frequently exports teak, oak, chestnut, beech, and other hardwoods. Additionally, they produce plenty of plywood and softwood, which are mainly exported to China, Japan, and Russia. These are then used in furniture, construction, and industrial applications.
Sanctions and Restrictions on North Korea’s Exports
North Korea is subject to several sanctions and restrictions from the UN because of the country’s activities involving weapons of mass destruction, human rights abuses, and international terrorism. These sanctions have had a substantial impact on North Korea’s economy, and exports of many of the country’s products are heavily restricted, or completely banned in some cases. As a result, North Korea relies heavily on exports to China, South Korea, and Russia.
The sanctions imposed by the UN have hurt North Korea’s export business significantly. There are also other restrictions in place that make it very difficult for North Korea to do business with other countries. Moreover, the restrictions prohibit North Korea from accessing foreign financial markets for capital, and it is difficult for North Korean companies to access export financing to purchase supplies and materials for the production of its goods.
Conclusion
North Korea is a resource-rich country with potential in terms of producing and exporting products. However, due to the country’s isolation, unstable relations with other countries, and restriction placed on it, the country is heavily reliant on exports to just China, South Korea, and Russia. North Korea’s exports include minerals, seafood, fashion, wood and timber. Despite the current restrictions, there is still potential for North Korea to expand its exports and engage in beneficial trade with other countries.
