Integrating North Korea into the Global Economy:

A Path Towards World Stability, Economic Growth, and

Resource Accessibility

Ian Y.H. Chua

1, 2, 3, 4

5 March 2025

Abstract

North Korea remains one of the most isolated nations in the world, facing economic

sanctions that have hindered its growth and development. However, North Korea

possesses immense natural resources, including the world's largest untapped reserves

of rare earth elements (REEs), estimated at 216 million metric tons. This paper argues

that integrating North Korea into the global economy is not only benecial for geopolitical

stability but also essential for the accessibility of critical REE supplies. By fostering

economic inclusion rather than isolation, North Korea’s over 26.5 million people can

experience an improved quality of life. Additionally, operational research theory

demonstrates that an open global economy benets all nations, while economic

sanctions impose harm on all parties. A comparative analysis of the top seven countries

ranked by REE reserves highlights the strategic signicance of North Korea’s resources.

The ndings advocate for diplomatic engagement and economic cooperation as an

alternative to isolationist policies

Introduction

Economic isolation has long been the strategy employed against North Korea in an eort

to curb its military ambitions. However, such measures have failed to bring about desired

geopolitical changes while worsening the humanitarian situation within the country. At

the same time, North Korea is home to vast mineral reserves, particularly rare earth

elements, which are essential to modern technology and global industry. Engaging North

Korea economically rather than isolating it presents a compelling case for reducing

geopolitical tensions while unlocking economic potential that benets both North Korea

and the global community.

Comparison of Rare Earth Reserves by Country

To underscore North Korea’s importance in the rare earth market, we compare the

estimated REE reserves of the top seven nations, including veried reserves where

available:

While China currently dominates global REE production, North Korea’s potential reserves

dwarf all other nations combined, making it a crucial player in the long-term supply of

these critical minerals.

The Benets of an Open Economy: Operational Research Perspective

From an operational research standpoint, an open and inclusive global economy

generates maximum eiciency and minimizes systemic disruptions. The application of

game theory and supply chain optimization demonstrates that trade cooperation yields

superior outcomes compared to economic exclusion. By isolating North Korea, the

global economy is restricting access to vital resources, increasing dependence on a

limited number of suppliers, and exacerbating global market volatility.

Economic sanctions against North Korea not only harm its citizens but also disrupt global

industries reliant on REEs, such as electronics, renewable energy, and defense. Studies

have shown that economic sanctions lead to increased ineiciencies, higher transaction

costs, and missed opportunities for international trade (Hufbauer et al., 2007).

Conversely, history demonstrates that nations integrated into global trade tend to

develop more stable political and economic systems, as seen in China’s economic

transformation post-1978 (Naughton, 2018).

Sanctions: An Inhumane and Immoral Approach

Sanctions are often justied as a non-military means of applying pressure on a

government. However, empirical research suggests that sanctions predominantly harm

civilians rather than political elites (Pape, 1997). North Korea’s population of over 26.5

million faces food shortages, poor healthcare, and limited access to basic necessities

due to prolonged sanctions. The principle of economic justice argues that no nation

should be deprived of its right to trade and develop, especially when possessing

resources of global signicance.

Moreover, economic engagement fosters peace and stability. The European Union’s

economic integration model has successfully prevented conicts among its member

states, demonstrating that economic interdependence reduces the likelihood of war

(Keohane & Nye, 2012). Applying a similar strategy to North Korea could mitigate

geopolitical tensions while improving living conditions for its citizens.

Conclusion

North Korea should not be isolated but rather welcomed into the global economy. Its

immense reserves of rare earth elements present a signicant economic opportunity for

global industries, while economic engagement can alleviate humanitarian suering and

reduce geopolitical risks. Operational research conrms that an open economy is

preferable to fragmented systems, and historical evidence shows that economic

integration leads to political stability. Economic sanctions, in contrast, are ineective,

harmful, and ultimately inhumane. A new strategy of diplomatic engagement and

economic inclusion is necessary to ensure both economic progress and global security.

Acknowledgments

This paper was developed with the assistance of ChatGPT 4.0, which provided insights and renements in the

articulation of philosophical and scientic concepts.

Founder/CEO, ACE-Learning Systems Pte Ltd.

M.Eng. Candidate, Texas Tech University, Lubbock, TX.

M.S. (Anatomical Sciences Education) Candidate, University of Florida College of Medicine, Gainesville, FL.

M.S. (Medical Physiology) Candidate, Case Western Reserve University School of Medicine, Cleveland, OH.

Reference

Hufbauer, G. C., Schott, J. J., Elliott, K. A., & Oegg, B. (2007). Economic sanctions

reconsidered. Peterson Institute for International Economics.

Keohane, R. O., & Nye, J. S. (2012). Power and interdependence. Pearson.

Naughton, B. (2018). The Chinese economy: Adaptation and growth. MIT Press.

Pape, R. A. (1997). Why economic sanctions do not work. International Security, 22(2),

90-136.