North Korea’s Trade Policy Changes and Adaptation to Sanctions

Purpose – This research aims to investigate how North Korea has adapted to the United Nations sanctions imposed since 2006, specifically analyzing shifts in its trade policies in response to these international pressures. Design/Methodology/Approach – Employing the theory of sanction busting, the study meticulously examines the impact of ten rounds of sanctions on North Korea's trade volume and economic health. Through this lens, the research evaluates how North Korea has strategically modified its trade policies to counteract the sanctions' effects. Findings – The study uncovers that North Korea has navigated the sanctions landscape by re-centralizing its trade system and diversifying both its trade commodities and partners. This strategic shift involves broadening the scope of traded items, including those under sanction, and cultivating a more varied portfolio of trading partners, effectively cushioning the country from the sanctions' intended economic squeeze. Research Implications – The insights gleaned from this study are critical for understanding the economic impact of sanctions on North Korea and offer a foundation for formulating more effective policies toward the country. By highlighting the adaptability and changes in North Korea's trade policy, this research suggests the need for a more nuanced and informed approach in the design and implementation of economic sanctions to encourage policy changes within sanctioned states.