Monograph

[Sejong Policy Studies 2025-07] North Korea's Consumer Goods Industrial Policy and Changes in the People's Living Standards in the Kim Jong Un Era

Date 2025-12-15 View 845

During the Kim Jong Un era, North Korea has pursued policies aimed at revitalizing the light industry and consumer goods sectors, positioning improvements in the people's standard of living as its foremost priority. On the production side, the regime has promoted domestic production, quality enhancement, factory modernization, and the strengthening of local industrial capacity, while simultaneously undertaking legal and institutional reforms through the enactment of legislation including the Light Industry Law, the Commodity Distribution Law, the Price Law, the Electronic Commerce Law, and the Quality Supervision Law. As a result, the share of domestically produced goods has expanded, product quality has improved, and quality management systems have been reinforced through the increased holding of exhibitions and the expansion of certification schemes. At the same time, the distribution structure has become more multilayered through the renovation of department stores and general merchandise outlets, the emergence of chain stores and mixed-use commercial facilities, and the spread of e-commerce and mobile payment systems, thereby diversifying consumer channels. Nevertheless, structural constraints continue to impede development, including dependence on imports for raw materials and equipment, infrastructure limitations such as electricity supply, disparities in capacity across regions, performance driven outcomes oriented toward appearances, and inconsistencies in product quality. The impact of the COVID-19 pandemic further exposed the vulnerabilities of the light industry sector. On the consumption side, brand preference and culturally oriented consumption have spread, particularly among the middle and upper-middle classes, while a dual strategy is being pursued to guarantee a minimum standard of living through policies such as regional development initiatives and childcare support programs. These changes may be interpreted as an adjustment in economic management that partially accommodates market mechanisms while seeking to contain them within the framework of state control, with the dual objective of reinforcing regime legitimacy and achieving social cohesion. Accordingly, the changes observed in the light industry and consumer goods sectors during the Kim Jong Un era may be understood not merely as industrial policy, but as a component of a broader regime management strategy centered on the stabilization of the people's livelihood economy. The fact that North Korea has designated improvements in the living standards, welfare, and consumption environment of its population as a core national policy objective suggests the possibility that, should inter-Korean political and military tensions be reduced and trust restored, new areas of cooperation could be identified. In other words, North Korea's people's livelihood centered economic policies could serve as a practical foundation for enhancing the substantiveness and receptivity of inter-Korean economic cooperation, and such cooperation could be pursued in a phased and mutually beneficial manner as sanctions and the security environment ease.​