North Korea’s Industry Hits Record Low under Kim Jong Un

Under Kim Jong Un’s leadership, North Korea launched an ambitious “regional development 20×10 policy” to construct factories in 20 counties annually over a decade to spur regional development. Despite these efforts, the country is witnessing its lowest industrial utilization rate since Kim took power.

The National Intelligence Service of South Korea revealed on the 19th that North Korea’s industrial activity has plummeted to unprecedented lows under Kim Jong Un’s rule. Factors contributing to this decline include chronic power shortages, outdated infrastructure, international sanctions, and the repercussions of COVID-19.

Reports indicate that the Kim Chaek Iron and Steel Complex, the largest steel mill in North Korea, is significantly underperforming. Given steel’s critical role in various industries—from construction materials and machinery to household appliances—any disruption in its production threatens the “20×10 policy” and the execution of rural housing projects.

An official of the National Intelligence Service said, “We understand that even representative enterprises like the Kim Chaek Steel Mill are often experiencing an annual operation rate falling to 10-20%.”

Similar results were found in the “North Korea Economic and Social In-depth Information Collection” project conducted by the Ministry of Unification from 2013 to 2021, targeting 6,351 North Korean defectors who escaped North Korea.

The “North Korea Economic and Social Status Perception Report” derived from this study revealed that, although the scheduled operating hours for businesses post-Kim’s accession were 10.6 hours on average, the actual operating time was 8.5 hours. 37.6% of respondents reported operational times of fewer than 6 hours.

Since 2012, 32.7% of North Korean defectors identified the “difficulty in securing raw materials” as a major production bottleneck, followed by a “lack of electricity,” which 23% cited as a critical obstacle.

kukoo@news1.kr