Both Koreas started out or more or less equal grounds. Both the countries were devastated, the South had a larger workforce but the North had more natural resources and industries. And for the first couple decades the North Korean economy actually performed better than the South Korean economy. So what changed all this? And why did North Korea become such a poor country? Most people will tell you that North Korea is poor because the sanctions are working. Or that it has to do with the fact that the country is communist. In this report we take a closer look at the history of North Korea's economy.