Commentary
North Korea’s recent economic growth is real but it is built on Russian cash, Chinese trade and illicit activity, says this analyst.
In this photo provided by the North Korean government, its leader Kim Jong Un, second left, supervises tests of a destroyer, the Kang Kon’s main gun and automatic cannons at an undisclosed place in North Korea Friday, July 3, 2026. Independent journalists were not given access to cover the event depicted in this image distributed by the North Korean government. The content of this image is as provided and cannot be independently verified. (Korean Central News Agency/Korea News Service via AP)
15 Jul 2026 05:58AM
SEOUL: A June 2026 Wall Street Journal article described North Korea as “the world’s most surprising economic success story” - a claim many would instinctively dismiss, yet one that warrants closer examination. The debate has gained enough traction that the Center for Strategic and International Studies (CSIS) recently devoted an entire podcast episode to whether North Korea’s economy has undergone a meaningful transformation.The WSJ draws on the observations of foreign visitors who entered the country after borders reopened post-pandemic. They described a Pyongyang far more modern than expected: ride-hailing apps, QR code payments in restaurants, electric vehicles, pet stores, widespread smartphone use and new high-rise developments. This picture contrasts sharply with the country’s long-standing image as one of the world’s poorest and most isolated states.As the article’s author noted in the CSIS podcast, Kim Jong-un “wants to show the world that [North Korea] it is not the poor, destitute nation that probably many countries think they are”.Analysts broadly agree that North Korea’s economy has improved since the pandemic, driven largely by external foreign currency, particularly troop deployments and arms exports to Russia reportedly collectively worth more than US$14 billion, continued trade with China and illicit cyber activities including cryptocurrency theft.
