The Democratic Peoples of Korea, situated in north-eastern Asia on the northern half of the Korean peninsula between the Peoples Republic of China and the Republic of Korea, has an area of 46,540 sq. mi. (120,538 sq. km.) and a population of 23.26 million. Capital: Pyongyang. The economy is based on heavy industry and agriculture. Metals, minerals and farm produce are exported. ,Japan replaced China as the predominant foreign influence in Korea in 1895 and annexed the peninsular country in 1910. Defeat in World War II brought an end to Japanese rule. U. S. troops entered Korea from the south and Soviet forces entered from the north. The Cairo Conference (1943) had established that Korea should be ?free and independent.? The Potsdam Conference (1945) set the 38th parallel as the line dividing the occupation forces of the United States and Russia. When Russia refused to permit a U.N. commission designated to supervise the reunification elections to enter North Korea, an election was held in South Korea which established the Republic of Korea on Aug. 15, 1948. North Korea held an unsupervised election on Aug. 25, 1948, and on the following day proclaimed the establishment of the Democratic Peoples Republic of Korea.,, Monetary System:,,, ,1 Won = 100 Chon,,