The Economics Of North Korea’s Special Economic Zone

November 23, 2014 in Daily Bulletin

Rason is a Special Economic Zone in North Korea that is experimenting with free market reforms. Rudiger Frank had a chance to visit it:

  • Clothes made in Rason will have “made in China” stamped on them so that they can be sold in South Korea.
  • While in North Korea’s capital, Pyongyang, the quoted exchange rate for each Euro is 132 won, in Rason it is the more realistic 10,476 won.
  • Not that it matters; transactions take place in Chinese Renminbi rather than North Korean won due to the greater stability of China’s currency.

Read about other ways that life is different, what North Koreans really think, and what this says about what an open North Korea would be like over here.

Source: Foreign Policy