2026, Vol.41, No.1

The Journal of Northeast Asia Research 2024 KCI Impact Factor : 0.54

pISSN : 2005-4432
https://journal.kci.go.kr/inas

Since the collapse of the socialist planned economy, the North Korean government has maintained strategic ambiguity by neither fully institutionalizing nor completely suppressing market activities (jangmadang). This study interprets this pattern not as a temporary policy inconsistency, but as an endogenous equilibrium generated by strategic interactions between the state and citizens. We formalize the interaction between enforcement intensity and market participation using an evolutionary game framework combining a Stackelberg game with replicator dynamics and conduct numerical simulations based on calibrated parameters. The results indicate that sanctions-induced resource shortages can weaken distribution capacity and increase incentives for market participation, while under certain conditions reinforcing surveillance and control mechanisms. In contrast, increased external assistance tends to alleviate enforcement costs and constrain market participation. These findings suggest that North Korea’s dual economic structure reflects mutual adaptation between regime survival strategies and citizens’ livelihood-oriented behavior, highlighting the non-linear and context-dependent nature of state-market relations.

N.Korea is one of the countries with the most vulnerable energy access in the world. Early in the Kim Jong-un era, solar panels began to be distributed primarily to wealthy individuals, businesses, and organizations. This led to the proliferation of "hidden solar power," operating as independent mini-grids not reflected in statistics, throughout N. Korea. This has led to a deepening energy gap between the rich and the poor, while the country remains energy-poor. In the 2020s, the N. Korean authorities are pursuing a plan to convert these solar power systems, centered around Pyongyang, to grid-connected systems and integrate them into the national power grid. This strategy also serves as a risk-averse strategy against the centralized power supply system. The N. Korean authorities are pursuing a parallel development plan, simultaneously building the existing centralized power generation system for heavy industry and small- and medium-sized distributed solar power facilities tailored to regional characteristics. However, technical challenges such as overload, poor power quality, and stability remain. This approach to solar power generation, driven by the desire of N. Korean residents to improve their lives and the government's response, mirrors the solutions and initiatives of other energy-poor countries.

The concept of ‘New Cultural Diplomacy(NCD)’ has emerged amid growing demands to overcome the boundaries between cultural diplomacy and international cultural exchange and to pursue them in an integrated manner. This study explores the new possibilities and policy implications of city cultural diplomacy by analyzing the case of Jeju Special Self-Governing Province through the theoretical framework of NCD. NCD is a relationship-oriented paradigm that integrates the state-led, unidirectional approach of traditional cultural diplomacy with the mutual understanding and reciprocity emphasized in international cultural exchange, and represents a paradigm shift encompassing the purposes, values, and modes of cultural diplomacy as well as its institutional and operational structures. In this context, this study analyzes the Jeju case by operationalizing four core dimensions of NCD—value, relationship, time, and space/structure. The analysis reveals that the province is practicing cultural diplomacy consistent with NCD principles by utilizing local identity as a diplomatic resource, strengthening civic participation, ensuring policy continuity, and engaging with international networks. While these efforts have yielded achievements such as the international articulation of local identity, the expansion of citizen-based exchanges, and the institutionalization of key projects, structural limitations such as the dualized implementation system between central and local governments were also identified. Based on this analysis, this study proposes policy directions for advancing city cultural diplomacy, including the integration of public diplomacy and international cultural exchange policies, the establishment of citizen-participatory governance, the continued promotion and funding of core projects, and strategic exchanges through prioritization and strategic focus.