@article{ART003310685},
author={Kim, Do Young},
title={The Expansion of North Korean Markets and Government Responses},
journal={The Journal of Northeast Asia Research},
issn={2005-4432},
year={2026},
volume={41},
number={1},
pages={5-32},
doi={10.18013/jnar.2026.41.1.001}
TY - JOUR
AU - Kim, Do Young
TI - The Expansion of North Korean Markets and Government Responses
JO - The Journal of Northeast Asia Research
PY - 2026
VL - 41
IS - 1
PB - The Institute for Northeast Asia Research
SP - 5
EP - 32
SN - 2005-4432
AB - 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.
KW - North Korean Marketization;Jangmadang;Evolutionary Game Theory;Strategic Ambiguity;Replicator Dynamics
DO - 10.18013/jnar.2026.41.1.001
ER -
Kim, Do Young. (2026). The Expansion of North Korean Markets and Government Responses. The Journal of Northeast Asia Research, 41(1), 5-32.
Kim, Do Young. 2026, "The Expansion of North Korean Markets and Government Responses", The Journal of Northeast Asia Research, vol.41, no.1 pp.5-32. Available from: doi:10.18013/jnar.2026.41.1.001
Kim, Do Young "The Expansion of North Korean Markets and Government Responses" The Journal of Northeast Asia Research 41.1 pp.5-32 (2026) : 5.
Kim, Do Young. The Expansion of North Korean Markets and Government Responses. 2026; 41(1), 5-32. Available from: doi:10.18013/jnar.2026.41.1.001
Kim, Do Young. "The Expansion of North Korean Markets and Government Responses" The Journal of Northeast Asia Research 41, no.1 (2026) : 5-32.doi: 10.18013/jnar.2026.41.1.001
Kim, Do Young. The Expansion of North Korean Markets and Government Responses. The Journal of Northeast Asia Research, 41(1), 5-32. doi: 10.18013/jnar.2026.41.1.001
Kim, Do Young. The Expansion of North Korean Markets and Government Responses. The Journal of Northeast Asia Research. 2026; 41(1) 5-32. doi: 10.18013/jnar.2026.41.1.001
Kim, Do Young. The Expansion of North Korean Markets and Government Responses. 2026; 41(1), 5-32. Available from: doi:10.18013/jnar.2026.41.1.001
Kim, Do Young. "The Expansion of North Korean Markets and Government Responses" The Journal of Northeast Asia Research 41, no.1 (2026) : 5-32.doi: 10.18013/jnar.2026.41.1.001
