Marketization in North Korea officially began with the July 1 measures in 2002. Since then, three thousands markets have been set up nationwide according to the cabinet instructions on market operation and management. In order to encourage market activities, the authorities liberalized market prices, allowed more freedom in the field of distribution, guaranteed commodities imports, and levied taxes on goods.
Farmers were permitted to sell their products in the markets and conduct business using cash. All market and economic affairs were administered by the North Korean cabinet.
From the year 2005, North Korean authorities began to partially regulate market activities, for instance, through the restoration of public food distribution systems and the prohibition of business activities for people under the age of 40 and of the trade of industrial products in the markets. Prime Minister Park Bong-ju, who led the introduction of markets, was purged from the cabinet in April 2007 and replaced by then Minister of Land and Marine Transport Kim Young-il. Prime Minister Kim tightened restrictions on the markets as well as on those who participated in commercial activities in the markets.

1. A Push toward Marketization in North Korea

2. The Kim Jong-un Regime's Economic Policy

3. Suspension of Economic Reform and Continuation of Fear Politics

4. Economic Relations with Neighboring Countries

5. Conclusion