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North Korea operates under a command economy, while its neighbor to the south is a mixed economy, combining free market principles with central planning by the government. ... It is the most prominent divide between North and South Korea that has existed since an armistice put an end to the Korean War in 1953.
The country tries to be self-sufficient, but has had major problems since the support of the Soviet Union fell away in the early 1990s. Agricultural production does not meet the country's need for food, which has led to starvation in several parts of the country.
The difference between North Korea and South Korea
- North Korea is ruled by a authoritarian communist dictator while South Korea is a democracy. Their economy is also different, South Korea is a economic powerhouse ranking 11th in the world, while North Korea is so poor it ranks at 115th.
- North Korea has a command economy, but its southern neighbor has a mixed economy, which combines free market principles with government central planning. Since an armistice ended the Korean War in 1953, it has been the most visible boundary between North and South Korea.
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