SEOUL, Dec. 14 (UPI) -- North Korea is accelerating economic and financial reform ahead of the 7th Congress of the Workers' Party of Korea, scheduled to convene in May 2016.
At a Financial Workforce Conference, held Sunday for the first time in 25 years, Pyongyang agreed to establish a Financial Coordination Committee, a financial regulator, South Korean news network YTN reported Monday.
In a letter to the gathering, North Korean leader Kim Jong Un said the banking and finance industries are essential to building a strong country, and reforms are needed in currency circulation.
The recent meeting was held in preparation for the 7th Congress, which is expected to focus on landmark decisions on economic policy.
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During the rule of Kim Jong Il, the collapse of North Korea's socialist mode of planning, and the former Kim's emphasis on the military, led to the indefinite suspension of the communist party meetings. The resumption of the congress, however, could mean Kim Jong Un is ready to propose a five-year economic plan that was typically the outcome of past meetings under Kim Il Sung, his biological grandfather.
Cho Bong-hyun, an analyst with South Korea's IBK Economic Research Institute, said the Sunday meeting was necessary.
"In order to open the 'Era of Kim Jong Un,' the regime needs to make gains in economic reform and foreign investment. But if the financial system is not working properly, those gains would not be possible – which is why they are moving toward reform," Cho said.
Japan's Kyodo News Agency reported that North Korea had attempted currency reform in 2009 but failed, and since then has been exploring ways to normalize currency circulation.
The newly established Financial Coordination Committee would make policy and be responsible for financial planning, South Korea press reported.
YTN reported North Korea recently sent Vice Minister of External Economic Affairs Ri Kwang Geun to China to request advice on financial systems.
