[Infostock Daily= Reporter Song Jeong-hoon] It was advised that a comprehensive economic partnership agreement between the two Koreas should be concluded to promote North Korea's economic reform and opening.
The Korea Institute for International Economic Policy (KIEP) released a report on the "North Korea Economic Change and New North-South Cooperation Direction after the 2016 sanctions against North Korea."
KIEP recommended in the report that "the new inter-Korean economic cooperation should be done in the direction of supporting North Korea's normalization of foreign relations and incorporation into international markets."
North Korea has achieved some achievements by promoting reform and opening measures, such as absorbing the market into the official economy after Kim Jong-un's inauguration and institutionally supporting it through legislation and amendment, the report said.
However, after the sanctions against North Korea in 2016, it was decided that the economy had faced difficulties as it changed to a high-cost structure that endured sanctions rather than increasing the efficiency and effectiveness of production.
The report cited cases of Vietnam and Myanmar in the past as examples, and predicted that if sanctions are maintained against North Korea, it would be difficult for Kim's reform and opening policy to achieve results.
Therefore, the report suggested that the new inter-Korean economic cooperation should be carried out in the direction of promoting reform and opening by supporting North Korea's normalization of foreign relations and the incorporation of international markets.
Reorter Song Jeong-hoon boxr@infostock.co.kr
