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This paper verifies what kinds of measures and changes in former transition countries were needed when their system made transitions. It tries to show that there have been similar changes occurred in North Korea. It also focuses on the appearance of market system and various corruptions through underground economy in North Korea. Next, North Korea has tried to overcome the worst economic situation through special economic zones. Last, this paper shows the reformation measure of North Korea’s economy through institutional reforms, economic measures as well as education of capitalistic market economy, seminar for North Korean officials and aggressive participation of international trade.
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