The Korean War had detrimental effects on the economy of both North and South Korea. North Korea had been wealthier than South Korea for a long time after the Korean War. However, the situation gradually changed and North Korea’s economy has been suffering for decades. Most scholars who have researched the economic situation in North Korea associate the economic slope in the country with economic mismanagement by North Korea's leaders as well as the end of financial support by the Soviet Union ( Oh & Hassig, 2004). The current economic situation in North Korea has brought to attention the need for rigorous economic reforms that will improve people's standard of living as well as boost North Korea's economy as a whole. The paper delves into unraveling some of the policies that can be implemented to ensure the country achieves economic development. Thus, the paper will attempt to identify these problems in order to draw up how North Korea can be reformed.