Jeju Peace Institute

LEE Young-hoon(Chief Research Fellow, SK Research Institute for SUPEX Management)

This research has looked into the Rason Special Economic Zone Project in terms of its significance, progress, determinants and prospects.

First of all, the project is very important. Not only can we observe the potential of North Korea in the areas of its economic opening and national development, but we can also look into the possibility of the reunification of the Korean peninsula in the near term through the project.

Second, Chinese involvement in the project has stalled since 2014 following the deterioration of bilateral relations between North Korea and China in the wake of North Korea’s third nuclear test and its execution of Jang Song-thaek. Thus far, only 120 or so Chinese manufacturers and about 6,000 laborers have been engaged in economic activities in the area since the project began to accelerate in 2010 following the signing of a treaty between the two countries.

Third, the determinants of the project include increased efforts on the part of North Korea to open its economy and the increasing necessity of both China and Russia to secure a seaport in the area, as both countries are significantly affected by the international sanctions imposed on North Korea for its development of nuclear weapons.

Consequently, the future of the Rason Special Economic Zone will be greatly affected by North Korea’s decision regarding its nuclear program and its neighboring countries’ reaction to it.