[Asia Economy Reporter Yang Nak-gyu] North Korea has the highest military expenditure as a percentage of GDP worldwide, but its absolute amount is minimal.
According to the '2019 World Military Expenditure and Arms Transfers' (WMEAT) report published on the U.S. State Department website, North Korea spent between 13.4% and 23.4% of its GDP on military expenses from 2007 to 2017. This ranks it overwhelmingly first among the 170 countries included in the statistics. However, in absolute terms, North Korea's military expenditure was $3.59 billion (based on 2017 exchange rates, median from 2007 to 2017), ranking 47th globally. This is about one-tenth of South Korea's $34.8 billion (10th place).
From 2007 to 2017, North Korea's defense exports were less than $100 million, placing it 40th. Among the 170 countries listed in the arms import statistics, North Korea ranked 147th, but its import amount was recorded as "0.0," indicating that official imports are virtually nonexistent due to sanctions making arms export or import difficult.
Therefore, North Korea operates its own military factories and produces weapons domestically.
North Korea's military industry and military science technology are overseen by the Second Economic Committee under the National Defense Commission. The Second Economic Committee consists of seven machinery industry bureaus, including the supporting General Bureau. The First Bureau handles conventional small arms, ammunition, and general military supplies; the Second Bureau is responsible for tanks; the Third Bureau manages artillery and anti-aircraft guns. The production of artillery and shells, directed by First Chairman Kim Jong-un, is managed by about 50 general arms and ammunition factories located in Pyongyang, Chongjin, Kangye, and other areas. The Fourth Bureau is responsible for missile system development; the Fifth Bureau handles nuclear and biochemical weapons; the Sixth Bureau manages naval vessels and submarines; and the Seventh Bureau is in charge of communication equipment and aircraft. The Fourth Bureau oversees five factories, including Hamhung 1.28, 1.25 Machinery Plants, and Kangye 26th General Factory, while the Sixth Bureau manages the Chongjin Manufacturing Plant and Nampo Shipyard.
North Korea currently possesses around 300 military factories, and in addition, civilian factories designated as wartime conversion factories can quickly switch to wartime mobilization systems. Most use disguised names such as "Factory No. 000" and are equipped with underground facilities. Additionally, about 110 general factories are designated as wartime conversion factories, enabling immediate production of military supplies during wartime. Most war materials are stored in tunnel stockpiling facilities, with an estimated supply for about two to three months.
The military supply factory area frequently visited by North Korean State Affairs Commission Chairman Kim Jong-un is the Jagang Province region. This area is densely packed with factories such as Kangye Tractor General Factory, Kangye Precision Machinery General Factory, Jangjagang Machine Tool Factory, and 2.8 Machinery General Factory. Jagang Province is also famous as the exemplary region of the "Kangye Spirit," praised by Defense Commission Chairman Kim Jong-il during the "Arduous March" period in the mid-1990s when he frequently visited.
Because of this, in North Korea, where national security is paramount, the Party Committee Secretary from Jagang Province, where military supply factories are concentrated, has sometimes been appointed as a member of the highest ruling body, the National Defense Commission, and as the Party's military supply secretary. A representative figure is former Defense Commission member Kim Chun-seop.
Due to harsh conditions in North Korea's military supply factories, accidents frequently occur. In April 2004, a large explosion occurred at Yongcheon Station in Yongcheon County, North Pyongan Province, devastating the town. At that time, the train was reportedly loaded with missiles and related parts. In 2013, fires and explosions occurred consecutively at military supply transport trains and production factories, raising concerns about possible terrorist attacks by resistance forces. In Yanggang Province, near the North Korea-China border, a fire suddenly broke out on a train transporting military supplies.
Due to sanctions, North Korea cannot engage in technology exchanges with other countries and sometimes uses intelligence agents to steal foreign military technology. In 2011, two North Korean spies attempting to steal top-secret missile design plans in Ukraine were arrested by Ukrainian intelligence agencies. They were sentenced to eight years in prison.
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