Despite sanctions from the international community, North Korea’s trade volume realized two decades of consistent growth starting from 1996. However, while it is common for an economy to grow in line with the growth in trade, North Korea’s economy remains lackluster. Quality as well as quantity is a vital factor in long-term economic growth. That is, “what” is exported is as important as “how much”. And, North Korea has fallen short in this aspect. Why? In order to find out, KDI first analyzed the changes in North Korea’s exports for the past 20 years. Until 2001, North Korea’s largest trading partner was Japan, and its exports were diverse, including mineral products, electronic parts and seafood. In 2002, however, China replaced Japan, intensifying North Korea’s dependency. Indeed, in 2016, China’s share of North Korea’s overseas trade marked a staggering 90%. And the share of anthracite has grown rapidly since the late 2000s. The boom in anthracite exports derives from the surging demand for fossil fuel products due to China’s rapid economic development. Also, North Korea strategically expanded its anthracite export to China in response to international sanctions which have restricted the inflow of foreign currencies.