Pyongyang’s overseas trade drops for first time in 6 years

[THE INVESTOR] North Korea’s trade volume came in at $6.25 billion in 2015, dropping 18 percent compared to the previous year, South Korean data showed on June 15.

According to the data released by the Korea Trade-Investment Promotion Agency, both exports and imports recorded a year-on-year drop to bring down Pyongyang’s overall trade volume.

The data showed that exports dropped 15 percent to come in at $2.7 billion, imports fell 20 percent to come in at $3.55 billion. With the changes, Pyongyang’s trade deficit decreased 33 percent to come in at $850 million. 

KOTRA attributed the drop in Pyongyang’s trade volume to slowing Chinese economy, and the drop in the price of commodities traded with China such as coal and crude oil.

KOTRA said that the volume of North Korean coal shipped to China increased 26.9 percent, but the value dropped 7.6 percent due to the fall in coal prices.

China is North Korea’s biggest trade partner, with trade with China accounting for 91.3 percent of the country’s entire trade volume.

China was followed by Russia, India, Thailand and Ukraine.

By Choi He-suk (cheesuk@heraldcorp.com)