weighted score 2.7 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
North Korea
Sanctions-prohibited economy assessment: labour, infrastructure, trade access, and innovation scores for North Korea.
Labour cost competitiveness
7
State-controlled wages are extremely low. However, all labour is state-directed and direct employment is prohibited under sanctions. Labour cost advantage is legally inaccessible.
Supply base depth
3
Mineral resources exist (coal, iron, rare earths) but productive capacity severely degraded. No manufacturing supply chain accessible to international buyers. Sanctions prohibit engagement.
Logistics & infrastructure
2
Rail, road, and port infrastructure in poor condition. Chronic energy shortages. No functioning international logistics connections. No World Bank LPI score.
Workforce skills
4
High literacy rate. Technical education system exists but quality is unverifiable. Military-industrial skills base. No independent assessment of civilian workforce capabilities.
Scalability
2
No legal pathway to scale sourcing. Sanctions prohibit investment and trade expansion. Even in a post-sanctions scenario, infrastructure rebuilding would require years.
Ease of doing business
1
Heritage Freedom 177/177. No rule of law. No property rights. No independent judiciary. Comprehensive sanctions prohibition. Impossible to conduct legitimate business.
Trade access & tariffs
1
Comprehensive sanctions prohibit all trade. No preferential access. No FTAs. No legal import pathway. Financial transactions restricted.
Sustainability baseline
1
No ESG data. No environmental monitoring. Deforestation documented via satellite. No sustainability certifications. No independent reporting.
Innovation & IP
3
Military technology investment (nuclear, missiles, cyber) is significant but not commercially accessible. No civilian innovation output. No patent activity. Proliferation risk.
Quality standards
3
No international certifications. No standards body participation. No independent quality verification. Any product claims are unverifiable.
Labour & Cost Competitiveness
Labour & Cost Competitiveness
- Wage levels
- Labour costs are among the lowest globally due to state-controlled wages. However, all labour is directed by the state — no free labour market exists. Overseas DPRK workers have been documented working for minimal compensation with earnings remitted to the state.
- Labour force
- Population ~26M. Workforce is state-directed through the Korean Workers' Party. No independent employment contracts. Military service consumes a large share of working-age population (estimated 1.3M active military).
- Sanctions prohibition
- Direct employment of DPRK workers is prohibited under UN Security Council resolutions. Any labour cost advantage is legally inaccessible to legitimate buyers.
- Indirect exposure
- DPRK workers deployed to third countries (Russia, China) may enter supply chains indirectly. This is the primary labour-related compliance risk for EU buyers — not direct sourcing from DPRK.
Supply Base & Infrastructure
Supply Base & Infrastructure
- Industrial base
- North Korea has mineral resources (coal, iron ore, rare earths, magnesite) and historical heavy industry capacity. However, decades of underinvestment, energy shortages, and sanctions have severely degraded productive capacity.
- Infrastructure
- Rail and road infrastructure is in poor condition. Power generation is unreliable — energy shortages are chronic. Port facilities at Nampo and Chongjin have limited capacity.
- Sanctions impact
- Comprehensive sanctions have isolated the economy from global supply chains. No legitimate trade infrastructure connects DPRK to international markets. Any commercial activity is either sanctioned or subject to extreme regulatory risk.
- Data limitations
- No independent economic data. GDP estimates vary widely. No World Bank LPI score. No independent infrastructure assessment. All assessments rely on satellite imagery and intelligence estimates.
Trade Access & Business Environment
Trade Access & Business Environment
- Sanctions regime
- Comprehensive UN, EU, and US sanctions prohibit virtually all trade. No preferential trade access. Financial transactions severely restricted. Investment prohibited.
- Economic freedom
- Heritage Economic Freedom Index 2025: 177/177 (dead last globally). No private property rights. State controls all means of production. No rule of law. No independent judiciary.
- Currency
- KPW at 21,700/USD (January 2025 parallel market). Official exchange rate is artificial. No convertible currency. No functioning banking system accessible to international partners.
- New economic plan
- 2026 WPK Congress announced a new 5-year economic plan. No independent data on implementation or targets. Previous economic plans have consistently failed to meet stated objectives.
Innovation, IP & Quality
Innovation, IP & Quality
- Military technology
- Significant state investment in nuclear weapons, ballistic missiles, and cyber capabilities. These are not commercially accessible and represent proliferation risk rather than sourcing opportunity.
- Civilian innovation
- No significant civilian R&D output. No patent filing activity in international systems. No participation in global innovation networks. Technology imports restricted by sanctions.
- Quality standards
- No international quality certifications. No participation in ISO or other standards bodies in any meaningful way. No independent quality verification possible.
- Cyber capability
- DPRK state-sponsored cyber operations (Lazarus Group and others) are well-documented. This represents a supply chain cybersecurity risk rather than an innovation asset — particularly for technology and financial services supply chains.