Korea, Dem. People’s Rep. Country Risk Rating

North Korea’s overall risk level remains very high. Kim Jong Un remains the supreme leader of the country. Political violence, political interference and legal & regulatory risk remain very high. North Korea continues to improve its military system with multiple new weapons and has pledged to continue doing so. North Korea, is still a major ally of Russia and is supplying troops as well as arms in exchange for oil and technology transfers. However, North Korea has been suffering from food shortages, due to the UN sanctions over its weapons and several natural disasters, which have also led the country to deepen its agricultural ties with Russia. High inflation has also been disruptive to the economy.  Meanwhile, the Trump administration has too many issues to focus on North Korea directly for now, but Trump still claims to have a good relationship with Kim Jong Un. In the coming years this could lead to new negotiations to freeze North Korea’s nuclear program at current levels. North Korea might also be willing to consider such an idea in exchange for recognition as a nuclear power, provided they receive U.S. financial support, though China, Russia and South Korea would be uncomfortable with this. Complete denuclearization is unlikely to be agreed. Meanwhile, supply chain disruption remains high. Sovereign non-payment remains medium high and exchange transfer remains low. The risk of doing business remains very high in North Korea.