North Korea, Hambuk Hweryeong-Musan Area –Model Individual Farming

According to the report on August 21, the North Korea has been implemented the individual farming as a model giving the lands of the state farm in some areas such as Hambuk Hweryeong and Musan for economic reformation in progress from July.

The North Korea has been reviewing whether it will expand all over the country from next January according to the performance of the individual farming.

Seoul well-informed diplomatic source said “Individual farming of the North Korea is very meaningful because its implementation is similar to an initial movement of the Chinese market economy system.”

It added “The North Korea seemed to extend the vegetable garden of 20~30 Pyeong to the maximum 400 Pyeong for the individual farming. This measure will increase the agricultural productivity of the North Korea.”

The report said, “Except the introduction of the individual farming, the measures of the economic reformation of the North Korea include △Expansion of the corporate management self-control △Improvement of labor management △ Expansion of Individual cultivated land △ Gradual abolition of foods and living necessaries. △Big raise in price and salary △ Exchange rate and customs duties adjustment.

Also, other report analyzed “As the characteristics of the economic reformation measures of the North Korea, all the fields including the corporate management, finance, agriculture and trade have been progressed simultaneously. Through it, the North Korea has made up for a non-effectiveness of Planned Command Economy of socialism and produced the satisfactory results which acquire the underground economy.”

However, it emphasized “If a national store doesn’t supply the enough goods because the price and salary is raised at the same time, the big raise in price could be happened. To succeed this reformation, the inflation must be prevented through expanding the goods supply capacity.“

Oh, Seung-Ryeol, the researcher of Korea Institute for National Unification (KINU) said “Introducing the individual farming by the North Korea means that the movement of the economic reformation of the North Korea turns to an affirmative direction. However, owing to the insufficient disposal authority on products, it will be compared with measures of the initial market economy reformation of China.

Young-Sik Kim spear@donga.com