Why does South Korea have a higher level of real GDP per capita than North Korea?

Question

Quizplus · Accepted Answer

South Korea has a better system of incentives compared to North Korea. The South Korean government has actively encouraged international trade and investment, implemented market-oriented reforms, and promoted education and technology. In contrast, North Korea's economy is highly centralized and controlled by the government, with limited international trade and investment. This has led to an inefficient and stagnant economy. While North Korea has substantial natural resources, including coal and rare earth metals, its economic system and lack of incentives have contributed to a lower level of real GDP per capita.

Why Does South Korea Have a Higher Level of Real