Economic Essay 1 Although the people of North and South Korea speak the same language, they have many different ideas and cultures that have developed after the two countries split apart. The market economy of South Korea has done a lot to improve the overall economy of the country, and the gross national product has been on the rise. The economy of North Korea has had many challenges, largely due to the self-reliant and closed economic system that they use. Overall, the government and economy of South Korea has been more prosperous and successful than North Korea. Much of this is due to the fact that in North Korea, they have a completely closed and centrally planned economic system which tends to inhibit their growth. The fact that South Korea operates under a democratic ideology, and has a capitalist economy seems to have given South Korea somewhat of an advantage. Because of their closed economic system, North Korea has refused to trade with capitalistic countries, and is only now showing more of an inclination to open communications up more even with South Korea. North Korea is one of the few command economies still standing. After the Second World War, the Korean peninsula was divided into North Korea and South Korea. North Korea, under the influence of the Soviet Union, established a command economy that emphasized government ownership and central government planning. South Korea, protected by the United State, established a market economy based upon private ownership and the profit motive. Today, the differences in the economic outcomes of the two systems are striking. For the command system in North Korea, GDP is $40 billion*. GDP per capita is $1800*. Exports is 1.3 billion. Imports is 2.7 billion. Agriculture as % of GDP is 30 percent. GDP growth is 3.7% (2009). GDP by sector is 43.1% in industry, 33.6% in services, 23.3% in