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- October 12, 202619°
- BIST10012,151-0.94%
- USD49.220.00%
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- INTEREST37.00%-1.00
- BITCOIN83,014-0.79%
- October 12, 202619°
North Korea's Economy Grows Amid Sanctions and War Revenues
North Korea's economy is reported to have grown due to sanctions, military and personnel ties with Russia, and the impact of new urban lifestyles. A 3.7% growth in 2024 marks the highest rate in the past eight years for the country.
Assessments in the American press highlight that North Korea's economy has gained unexpected momentum after many years. It was reported that despite international sanctions, the Pyongyang regime has generated income through military and economic ties with Russia, which has supported growth in the country.
The report included allegations that North Korea sold weapons to Russia and sent some of its soldiers to the war in Ukraine. It was also claimed that about one-third of the more than 15,000 North Korean soldiers fighting in Ukraine have been killed or wounded.
North Korean hackers are alleged to have brought billions of dollars into the country through activities such as cryptocurrency theft. The Kim Jong-un administration is said to have found ways to bypass sanctions, allowing more fuel and supplies to enter the country.
With Beijing's support, new services have emerged in the country, drawing attention to Chinese-made electric cars and a construction boom. It was stated that 10,000 new homes were built in Pyongyang last year.
After the pandemic, visitors to the city encountered services previously uncommon in the country, such as ordering taxis online, paying with smartphones, and food delivery. Car dealerships selling BMWs, shopping centers, luxury restaurants, and internet cafes are said to have given Pyongyang a more modern appearance.
It was also noted that mobile phones are rapidly spreading among the public. However, it was emphasized that these new opportunities are mostly benefiting the country's elite rather than everyone.
According to data from the South Korean Central Bank, North Korea's economy grew by 3.7% in 2024. This rate is recorded as the highest growth level in the past eight years.
Think tanks in Seoul also predict that growth is continuing. However, referencing United Nations data, it was reminded that nearly half of the 26 million population in the country suffers from malnutrition.
The report also evaluated that economic progress could complicate Pyongyang's willingness to negotiate with the U.S. on its nuclear program. It recalled that Donald Trump met face-to-face with Kim Jong-un three times during his first presidential term.
In a separate report by The New York Times, it was argued that Kim Jong-un strengthened his rule during the pandemic and revived the economy through the Ukraine war. The North Korean leader, receiving money, fuel, food, and military technology from Moscow, is said to have led his country into a stronger era.
The report also stated that Kim Jong-un closed borders during the COVID-19 period, ended smuggling, and further consolidated his rule during this time. Jiro Ishimaru, editor-in-chief of Japan-based Asia Press International, was quoted saying, "In the past few years, Kim Jong-un has traveled from hell to heaven."
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