Pyongyang's Uber, BMWs on the boulevards and Putin's war billions – these tell the incredible story of North Korea's comeback, writes the Wall Street Journal
Today, North Korea, underestimated for decades, seems to be getting its revenge.
Together with its leader, Kim Jong-un, the strict regime overturns all international predictions, the country is now pushing the “button” of an unexpected economic, digital and construction boom, leaving behind the image of absolute poverty.
The digital transformation of Pyongyang
After more than a hundred visits to North Korea, Australian travel agent Rowan Beard was used to long waits for taxis. But on a recent visit to Pyongyang, the vehicle arrived within minutes. His North Korean interpreter pulled out a smartphone, opened the Samsung app and hailed a taxi through an Uber-like service. Together, they tracked the vehicle's movements in real time. “It was completely new, I was amazed,” Beard said.
North Korea is the world's most unlikely growth story. Its economy is booming, fueled by arms sales and the deployment of 15,000 troops to Russia for the war in Ukraine, where a third of them have been killed or wounded. At the same time, China's supplies and ability to circumvent sanctions allow it to import energy and raw materials. In fact, Chinese leader Xi Jinping visited the country this week, his first foreign trip of the year.
An unrecognizable capital
The regime, which had closed its borders during the pandemic, now allows only a few Russian and Western diplomats or travelers to enter. They describe an unrecognizable Pyongyang. Restaurants serve wood-fired pizzas, payments are made with QR codes, Chinese electric vehicles ply the streets, and pet stores, Internet cafes, and BMW dealerships are open. At the same time, a nationwide construction boom is underway. Last year, North Korea built 10,000 new homes in the capital, more than in Los Angeles or Chicago.
At the Workers' Party congress in February, the dictator defended the economic recovery, pointing out that it had been achieved despite the “barbaric blockade” imposed by the United States, while new rows of missile launchers were displayed outside the building. “Everything has changed radically,” Kim said. The 2017 UN sanctions were aimed at restricting trade due to nuclear progress. During his first term, President Donald Trump met with Kim three times but failed to reach a denuclearization agreement. Since taking office, Trump has praised their relationship and proposed a new date.
There are no shortage of contradictions
Kim urges his people to build an independent economy. The regime hides official figures and fully controls what visitors can see.
Outside the capital, the country remains poor, with nearly half of its twenty-six million people malnourished, according to the UN, while its GDP is less than 1 percent of that of the United States.
At the same time, it remains among the countries where the most human rights violations occur, as even distributing a South Korean series is punishable by death.
But reports from South Korean expert groups confirm that the progress is not just propaganda, as satellite images show increased maritime activity and expanding oil reservoirs. In addition, the country appears three times more lit up at night than it was five years ago. Arms sales to Moscow have brought in billions of dollars, according to the Institute for National Security Strategy (INSS) in Seoul.
Foreign allies and digital money
Monthly trade with China has hit an eight-year high, with Chinese brands operating there despite sanctions. The country's digital economy relies on Chinese components, while Kim's hacker army operates from China without fear of arrest. And attacks on cryptocurrency exchanges have brought the regime billions of dollars.
The nuclear program acts as a deterrent against attack, allowing the North Koreans to focus on the economy. But that progress dashed US hopes for a diplomatic deal in exchange for the lifting of sanctions.
The economy grew by 3.7 percent in 2024, the fastest pace in eight years, according to South Korea's central bank. Stephan Haggard, a researcher at the University of California, San Diego, says the economy is the strongest it has been in 15 years, calling it an incredible achievement.
The regime is richer than ever
The country's new warships and drones bear a striking resemblance to Russian designs, while Moscow has already fielded air defense systems. The “advertisement” of North Korean weapons on the front line in Ukraine is a huge profit. As Jung H. Pak, a former official in Joe Biden's administration, points out, “the regime is richer than ever.”
At the same time, the regime is expanding state-owned stores and pharmacies to replace black market activity, providing jobs to former smugglers, as Daily NK's Lee Sang-yong reported, confirming that some of the proceeds from weapons and cyber attacks are going to residents.
