Russia's invasion of Ukraine has become a gold mine not only for Belarus, but also for North Korea. Here's what they are profiting from
North Korea, which for many years was a symbol of poverty, isolation, and international sanctions, is now experiencing an unexpected economic boom. The country is undergoing a construction boom, the number of cars is growing, digital services are expanding, and the economy is demonstrating its best growth rates in recent years. Thanks to what, The Wall Street Journal reports .
Supreme People's Assembly of the DPRK. March 22, 2026. Photo: KCNA
Just five years ago, the situation in North Korea looked catastrophic. The Covid-19 pandemic forced the DPRK to severely close its borders, which practically halted trade with China – the country's main economic donor. In 2021, Pyongyang faced a severe energy deficit, which led to the closure of coal mines, and a shortage of basic products such as oil and sugar.
The situation was so dire that Kim Jong Un publicly admitted the failure of his policies, lost significant weight, and even shed tears during a speech about the food crisis. The then Russian ambassador described empty store shelves, and Kim himself stated that almost all sectors of the economy failed to meet their plans.
However, in 2022, Russia's invasion of Ukraine gave Kim Jong Un a historic opportunity. Pyongyang became a key supplier of ammunition for Moscow, bringing the regime more than $10 billion since the summer of 2023.
According to analysts, the DPRK received an additional half-billion dollars thanks to sending more than 15,000 soldiers to the Russian front, where about a third of them were killed or wounded. At the same time, a significant part of the compensation comes not in the form of money, but in the form of military technologies, components, and other materials.
Vladimir Putin and Kim Jong Un after a meeting in Beijing, September 3, 2025. Photo: Getty Images
As WSJ notes, Moscow has already transferred air defense systems to Pyongyang, and new North Korean warships and drones now clearly resemble Russian models. According to experts, the use of North Korean weapons and military personnel on the Ukrainian front has become a kind of free advertisement for its military products for the regime.
Equally important was China's support. Trade with Beijing reached an eight-year high, and many Chinese brands openly sell their products in the DPRK, despite sanctions restrictions.
It is precisely Chinese components that largely ensure the development of North Korea's digital economy. In addition, North Korea's army of cybercriminals, which earns billions of dollars through attacks on crypto exchanges, largely operates from Chinese territory.
All this allowed the North Korean economy to return to growth. According to estimates by the Bank of Korea, in 2024, the DPRK's GDP increased by 3.7% – the best result in the last eight years. Many analysts believe that the country's economic situation is now the strongest in almost 15 years of Kim Jong Un's rule and, possibly, the best in the last years of his father Kim Jong Il's rule.
Hwasong — a new district of high-rise buildings in Pyongyang. Photo: JustCherry__ / X
Digital Revolution and a New Look for the Capital
The influx of funds triggered a real internal boom that made Pyongyang unrecognizable. As WSJ notes, the city now has an Uber analogue — the Samhung mobile app, which allows users to call a taxi and track its movement in real-time. Residents of the capital actively use QR codes for payments, order food, goods, and even prescription medicines via smartphones. Domestic production of mobile phones has reached half a million units per year, and more than 50 different local brands are available on the market.
The visual appearance of the streets has also changed. As WSJ writes, Pyongyang's roads are now filled with Chinese electric vehicles and imported cars, including BMWs. The increase in the number of cars is so significant that state television has started broadcasting programs about updating traffic rules: prohibitions have appeared on smoking while driving, walking pets without a leash, and crossing the street in an inappropriate place.
In local department stores, one can see cosmetics with the Chanel logo and Ray-Ban glasses, while restaurants on the top floors of glass-floored skyscrapers serve sushi, pizza, and traditional Korean noodles.
Cars on the streets of Pyongyang. Photo: JustCherry__ / X
The penetration of digital technologies is also visible in other areas. In May, Pyongyang hosted the first full-scale international trade fair since the pandemic, which gathered more than 290 companies from Russia, China, Mongolia, Switzerland, and Thailand.
Local manufacturers showcased "smart TVs" that allow direct purchase of goods, as well as smartphones costing over $500. According to sellers, manufacturers are increasingly focusing on domestic demand.
Visitors at the 24th Pyongyang International Trade Fair. May 4, 2026. Photo: AP
Construction Boom and Return of State Control
Another sign of the new economic reality was large-scale construction. Last year, 10,000 new apartments were completed in Pyongyang, more than in Los Angeles or Chicago during the same period. In the new "Hwasong" district, 40-story towers painted red to resemble intercontinental missiles have been erected. It is there that the families of soldiers who died in Russia received housing.
Other completed projects include the country's largest hospital, a greenhouse complex larger than New York's Central Park, and a new seaside resort.
At the same time, Kim Jong Un is promoting the "20x10" program, which envisions the construction of new factories in 20 cities and districts annually over the next decade. The project includes not only light industry enterprises but also new medical facilities and recreation areas.
Simultaneously, authorities are expanding the network of state-owned stores and pharmacies, gradually limiting the role of the black market, which became particularly important during the years of sanctions and the pandemic. The regime is also trying to reclaim state control over those areas of economic life that previously largely depended on private initiative and smuggling.
View of Hwasong — a new district of high-rise buildings in Pyongyang. Photo: JustCherry__ / X
However, beyond the facade of economic success lies another reality. As WSJ reminds, North Korea remains a poor country. According to UN data, almost half of its 26 million inhabitants are undernourished. The DPRK also remains one of the most repressive states in the world: even the distribution of South Korean TV series can be punishable by death.
Nevertheless, numerous indicators point to real changes. Satellite images show increased activity around oil storage facilities, expansion of fuel storage infrastructure, and more crowded parking lots. At night, North Korea now shines about three times brighter than five years ago.
At the same time, Kim Jong Un is expanding international ties. As WSJ notes, he visited a Chinese military parade for the first time, along with more than twenty other foreign leaders. In March, the DPRK leader also hosted Alexander Lukashenka in Pyongyang, after which the countries signed a friendship agreement.
Kim Jong Un and Alexander Lukashenka. March 25, 2026. Photo: Belarussian Presidency / Handout / Anadolu via Getty Images)
Geopolitics and Economic Resilience
These results appear particularly significant against the backdrop of Western sanctions policy. As WSJ reminds, back in 2017, the US and UN significantly tightened sanctions against North Korea in response to the development of its nuclear program. During his first presidential term, Donald Trump met with Kim Jong Un three times, becoming the first sitting US leader to take such a step. However, the parties failed to agree on dismantling North Korea's nuclear program. After returning to the White House, Trump again expressed a desire to meet with the North Korean leader.
According to the WSJ author, the main paradox of the current situation is that the DPRK's economic successes reduce Pyongyang's motivation to compromise on the nuclear program issue. While Washington could previously offer economic incentives in exchange for denuclearization, now the support from Russia and China makes such pressure much less effective. As a result, Kim Jong Un's regime feels significantly more confident than it did a few years ago.
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