NORTH KOREA'S FOREIGN TRADE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001500220012-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 16, 2016
• Document Release Date: December 28, 2004
• Sequence Number: 12
• Publication Date: January 1, 1968
• Content Type: IM

 Approved For Release 20051011/?QA#F} 8 0krj"01ࡀ-5 r,'L - s
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Secret
DIRECTORATE OF
INTELLIGENCE
Intelligence Memorandum
North Korea's Foreign Trade
Secret
Copy No. .l 1 y r
ER IM 68-10
January 1968
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WARNING
This document contains information affecting the national
defense of the United States, within the meaning of Title
18, sections 793 and 794, of the US Code, as amended.
Its transmission or revelation of its contents to or re-
ceipt by an unauthorized person is prohibited by law.
GROUP I
LXCLUDrD rllOM IUTOMATIC
f)OHNOI(AOINO AND
OCCLANSIrWCATION
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SECRET
CENTRAL INTELLIGENCE AGENCY
Directorate of Intelligence
26 January 1968
INTELLIGENCE MEMORANDUM
North Korea's Foreign Trade
Summary
North Korea's foreign trade is oriented strongly
to other Communist countries. During 1966, these
countries accounted for 87 percent of total trade
of about $445 million, and the USSR and Communist
China in combination made up 75 percent of the
total. Almost one-half of North Korea's non-
Communist trade with Free World countries was with
Japan.
With the exception of trade in bulk commodities,
almost all trade with the USSR and Communist China
moves by overland transport routes. North Korean
trade with other countries, including all Free
World nations moves entirely by sea.
Note: This memorandum was produced by CIA. It
was prepared by the Office of Economic Research.
This memorandum is a preZiminaru analysis of
North Korean trade data.
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1. North Korea's foreign trade, most of which
is with other Communist countries, has been of
great importance to the development of the economy.
The value of North Korea's foreign trade in 1966
was about $445 million, compared with $429 million
in 1965. Imports had consistently exceeded exports,
until in 1966 when North Korea achieved an export
surplus with both the Free World and the Communist
countries.
2. Exports, which have increased steadily
since 1964, totaled about $236 million in 1966, an
increase of 13 percent, and imports totaled $208
million, a decline of 5 percent, as shown in the
following tabulation:
Million US $
1965
1966
Total
Imports
Exports
Total
Imports
Exports
Total a/
429
220
209
445
208
236
Free World
57
34
23
59
26
33
Communist
373
187
186
386
183
203
a. Because of rounding, components may not add to the totals
shown.
3. North Korea is dependent on imports of
coking coal, petroleum products, rubber, chemicals
(especially fertilizers), and a wide range of
machinery and equipment, including complete plant
installations. Also, wheat and sugar have been
imported in recent years. North Korea's exports
are chiefly ferrous and nonferrous metals and
minerals. Other important export commodities
include rice, fish, and chemicals.
Trade with Communist Countries
4. About 87 percent of North Korea's trade
in 1966 was with other Communist countries. This
share has been relatively constant since 1964.
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The Soviet Union and Communist China, the
principal trading partners, together accounted
for about three-fourths of North Korea's total
trade in 1966. In 1966, as in the past, machinery,
equipment, and petroleum products accounted for
about one-half of North Korea's imports from the
Soviet Union. The remaining imports from the
Soviet Union consisted mostly of wheat, cotton,
steel, chemicals, and wood products. North Korea's
most important import from Communist China
was
coking
coal, followed by minerals, ferrous
metals,
steel
products, rubber, chemicals, cotton,
and
sugar.
Imports from the Eastern European
Communist
countries consist mainly of machinery and
equipment
and chemical products.
Trade with the Free World
5. North Korea's trade with the Free World has
been expanding steadily since 1962, but is still
less than 15 percent of total trade. Japan is
North Korea's largest non-Communist trading partner,
accounting for almost one-half of North Korea's
trade with the Free World in 1966. Japan is the
major Free World customer for North Korean exports
of ores and semimanufactures of iron, zinc, and
lead. North Korea imports machinery, equipment,
and chemicals from Japan and Western Europe.
Wheat is also imported from France, Greece,
Australia, and Argentina.
6. The largest share of North Korea's trade
with the USSR and Communist China moves overland,
although trade in bulk commodities such as ore and
cement moves by sea. North Korean trade with all
Free World countries and with Communist countries
other than the USSR and Communist China moves
entirely by sea.
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 North Korea: Trade with Selected Free World Countries
1964-66
1964
1965
1
66
9
Country
Total
Exports
Imports
Total
E
t
xpor
s
Imports
Total
Ex
orts
m
t
p
D
por
s
Japan
31,300
20,100
11,200
31,231
14,724
16
507
27
711
22
694
01
France
Greece
52
14
38
4,449
76
,
4,373
,
6,890
,
46
5,
7
6,844
Hong Kon
1
5464
5 4
g
Australia
,703
1,700
3
1,884
1,781
103
4 ,260
4,239
21
UAR
1
300
0
4,300
4,300
3,034
3,034
N
th
l
,
7
0
600
918
490
428
2
810
1
658
1
1
2
e
er
ands
4,705
5
4,700
5,473
848
4,625
,
2
481
,
1
135
,
5
1
46
West Germany
1,197
300
897
3,678
2
072
1
606
,
2
274
,
1
,3
cn
Argentina
United Kingdom
120
68
,
,
,
1,106
,233
1,041
1,106
n
52
210
101
109
591
543
48
Italy
Belgium-Luxembourg
766
107
113
h
653
IM
529
n_1 n
308
0-
221
519
-
194
325
Switzerland
25
24
1
28i
276
~.,
~-LU
)L+U
Denmark
1
5
231
229
2
1
276
275
1
142
141
Austria
S
d
236
236
1,111
238
873
57
2
1
55
we
en
1
1
390
372
18
1
1
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