Korea, North Korea, North Background Following World War II, Korea was split, with the northern half coming under Communist domination and the southern portion becoming Western-oriented. KIM Chong-il has ruled North Korea since his father and the country's founder, president KIM Il-song, died in 1994. After decades of mismanagement, the North relies heavily on international food aid to feed its population while continuing to expend resources to maintain an army of about 1 million. North Korea's long-range missile development and research into nuclear, chemical, and biological weapons and massive conventional armed forces are of major concern to the international community. In December 2002, North Korea repudiated a 1994 agreement that shut down its nuclear reactors and expelled UN monitors, further raising fears it would produce nuclear weapons. Korea, North Economy North Korea, one of the world's most centrally planned and isolated economies, faces desperate economic conditions. Industrial capital stock is nearly beyond repair as a result of years of underinvestment and spare parts shortages. Industrial and power output have declined in parallel. The nation has suffered its tenth year of food shortages because of a lack of arable land; collective farming; weather-related problems, including major drought in 2000; and chronic shortages of fertilizer and fuel. Massive international food aid deliveries have allowed the regime to escape mass starvation since 1995-96, but the population remains the victim of prolonged malnutrition and deteriorating living conditions. Large-scale military spending eats up resources needed for investment and civilian consumption. Recently, the regime has placed emphasis on earning hard currency, developing information technology, addressing power shortages, and attracting foreign aid, but in no way at the expense of relinquishing central control over key national assets or undergoing widespread market-oriented reforms. In 2003, heightened political tensions with key donor countries and general donor fatigue have held down the flow of desperately needed food aid and have threatened fuel aid as well. Korea, North Location Eastern Asia, northern half of the Korean Peninsula bordering the Korea Bay and the Sea of Japan, between China and South Korea Korea, North Flag three horizontal bands of blue (top), red (triple width), and blue; the red band is edged in white; on the hoist side of the red band is a white disk with a red five-pointed star
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