guy, we know it’s the subject of numerous insane rumors and we know the sealed borders

prevent us from learning much of anything about the place. But one thing that is becoming

a little more clear is the state of the Hermit Kingdom’s economy, one that may have been

built on the backs of smugglers and black market traders.

For the most part the economy in North Korea is run by the government, including imports,

exports and manufacturing. In fact, private trade is illegal, but that doesn’t mean

it doesn’t happen. Over the last couple of decades North Koreans have developed a

gray market, or an informal economy, one that is not monitored, controlled or taxed by the

government. And, according to one North Korea expert, its success can be partially attributed

to Kim Jong Un himself.

"Kim Jong Un's policy is remarkably friendly towards the private businesses, because his

father was uncertain. He oscillated from toleration of the private economy to occasional support

of the private economy, and then back to attempts to eradicate the private economy….Kim Jong

Un's policy is different. It's a quite tacit approval and encouragement and support of

private economic activities."

And if this is true, if Kim Jong Un really does support more private business, than this

is big news. Sure, he may still rule the country with dark age tactics, like using executions

as a means to flex his power, but he is North Korea’s first leader in a long time to support

an economic system that even slightly resembles a free market.

But, it’s not just Kim Jong Un who is helping the North Korean economy. The grey market

has origins in a flourishing black market, one that was brought upon by a devastating

famine in the mid 1990’s. You see, back then the government had a public distribution

system that gave out - or withheld - food to its citizens based on political affiliation

and loyalty. The famine collapsed this system and forced citizens to fend for themselves.

Insert black market here. North Korean leadership knew they had to either look the other way

or see their people starve. But, the black market soon grew past its origins became a

place for goods that were illegal or unavailable.

This is Kim Danbee, a North Korean defector who started working in the black market at

the age of 13, helping smuggle in items from China.

“The products I usually smuggled were the ones that everyone can use...I would illegally

import electronic goods like television sets, refrigerators, rice cookers...I also smuggled

cosmetics, face masks and clothes that women like, and even needles and hair extensions”

This was groundwork for today’s North Korean grey market, which in turn may be laying the

groundwork for an actual private sector. This is an economy that went from the Kim Jong-il

parceling out meager food rations to the 2010 opening of a department store in Pyongyang,

shelves stocked high with imported goods priced only in US dollars.

No one knows for sure where North Korea’s economy will go from here, but they seem to

be tiptoeing towards a free market...which could ultimately lead to looser borders. But

for now those borders remain closed, the country is still cloaked in wild rumors and this guy

is still in charge. Yes, he may support the black markets and a grey economy, and yes,

he may be more economically progressive than his father and grandfather. But he still is

an unpredictable leader who may have just executed a high level military general for

falling asleep in a meeting. So, who can really tell what lies ahead for North Korea, its

economy, and its people.

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