Does North Korea also take an interest in the global securities market?

South Korea’s KOSPI index has surpassed 5,000, setting a new all-time high. Optimistic forecasts have even suggested that it may soon break through the 6,000 mark. Does North Korea also take an interest in the global securities market?

Particular attention should be paid to Securities Investment and Analysis (327 pages), written by Jeon Gwang-nam and published by Industrial Publishing House in 2014. Recently obtained by the Peace Economy Research Institute, the book comprehensively illustrates how North Korea, following the launch of the Kim Jong Un era, views stock markets and securities transactions in capitalist societies. Above all, it serves as a “guide to the securities market” published for financial sector professionals in North Korea. Accordingly, it provides detailed explanations of the general concepts of securities and securities investment, methods of trading in the primary and secondary markets, theoretical pricing and risk of securities, as well as technical analysis and investment strategies. The book offers insight into the level of understanding of securities and capital markets in North Korea under Kim Jong Un. The purpose of publication stated in its preface is particularly noteworthy.

“This book is published in order to help financial sector officials deepen their research on the securities market in line with the changed international environment and conditions, pioneer new markets, expand and develop various financial operations, and effectively utilize market space to serve our revolution in a favorable way.”

Although more than 40 years have passed since North Korea first showed interest in the securities market, the establishment of a stock exchange in Pyongyang remains a distant prospect. To operate an exchange, state-owned enterprises would first need to be privatized and issue shares. This issue is directly tied to North Korea’s fundamental economic policies and management system. As seen in the cases of China, Russia, and Vietnam, opening capital markets has been closely linked to broader reforms of the state system. In other words, the establishment of a stock exchange would require comprehensive reform and opening of North Korea’s economic system. Moreover, the prevailing assessment is that the current size of North Korea’s economy remains insufficient to sustain an exchange.

🌍 Source: Chung Chang-hyun, Director of the Peace Economy Research Institute, “Reading North Korea with Chung Chang-hyun” (News1)

Chung Chang-hyun is Director of the Peace Economy Research Institute. He holds a master’s degree in Korean history from Seoul National University and previously worked as a senior journalist at the JoongAng Ilbo Institute of Contemporary History.