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This paper examines the implications of North Korea’s Special Economic Zone (SEZ) strategy since the early 1990s in terms of the shifts in both North Korea’s economic system and geopolitical order on the Korean peninsula. Specifically, it analyzes the shifts in North Korea’s SEZ policy in three different aspects—North Korea’s unique territorial logic, stress on decentralization, and comparison with Chinese reform and opening-up. Based upon this analysis, this paper criticizes a linear approach to understand North Korea’s economic transformation from isolation to opening-up, and explores the dynamics of North Korea SEZ strategy in various dimensions. It contends that North Korea’s SEZ strategy is neither an inevitable choice from economic difficulty nor an adoption of Chinese model of reform and opening up. Rather this paper focuses on the geopolitical logic and local development imperatives underlying SEZ strategy.

North Korea’s Special Economic Zones Strategy in the Kim Jong-Un era: Territorialization, Decentralization, and Chinese-Style Reform and Opening?