North Korea has undergone a significant economic shift, with satellite imagery showing the illuminated area in central Pyongyang more than doubling since 2020 and brightness levels tripling. According to NK News, this surge in electricity and infrastructure development is largely fueled by revenue from military cooperation with Russia, which reportedly generated more than $14 billion between 2022 and 2025, according to Bloomberg Economics.
Pyongyang’s Infrastructure Expansion and Modernization
The visual transformation of North Korea’s capital is most evident in its skyline. Following a 2021 directive from Kim Jong Un during the 8th Party Congress to construct 50,000 new homes, the state has completed massive projects, including the Hwasong district, where 40-story apartment blocks feature designs resembling Hwasong intercontinental ballistic missiles. Beyond residential housing, the regime has finalized the nation’s largest hospital and a massive greenhouse complex, while the Wonsan-Kalma beach resort was inaugurated in June to accommodate 20,000 guests.
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Foreign visitors have noted a rapid modernization in Pyongyang, including the prevalence of Chinese-made electric vehicles, the adoption of QR-code mobile payment systems, and the availability of Western-branded fashion and cosmetics in retail centers.
The Economic Impact of Military Cooperation with Russia
The state’s current economic trajectory is tied to its role as a strategic partner in the Russia-Ukraine war. An Institute for National Security Strategy (INSS) report from March indicates that Pyongyang earned up to $14.4 billion from ammunition sales and troop deployments. This influx of capital stands in stark contrast to the nation’s 2024 GDP, which was approximately $27 billion. Beyond direct military payments, the regime reportedly generates significant revenue through labor exports, cybercrime—such as the massive Ethereum theft from the Bybit platform in February 2025—and trade with China.
The logistical nature of this partnership often mirrors Soviet-era barter systems. In exchange for artillery, multiple rocket launchers, and ballistic missiles, Moscow provides North Korea with crude oil, grain, and advanced military technology, including drone and submarine components. According to Ukrainian government estimates, North Korea has supplied roughly half of the ammunition used by Russian forces on the front lines during 2024 and 2025.
Regional Development and Long-Term Viability
Despite the modernization of Pyongyang, the benefits of this economic windfall remain concentrated. Andrey Lankov, a professor at Kookmin University in Seoul, notes that the current growth is not a result of internal market reforms but rather “luck from the international arena.” While the regime launched the “20×10” program in early 2024 to stimulate industrial growth across 200 regional projects over a decade, experts remain skeptical.
Lankov suggests that these regional factories face structural hurdles, including a lack of reliable electricity and raw materials. Meanwhile, ordinary households continue to face economic pressure from currency depreciation and rising food prices, forcing more women into the workforce to maintain basic living standards.
Frequently Asked Questions
- How is North Korea funding its recent infrastructure projects?
According to reports from the INSS and Bloomberg Economics, the funding is largely derived from military support for Russia, including ammunition sales and troop deployments, alongside cybercrime and labor exports. - What is the “20×10” program?
Launched in 2024, it is a regional development plan intended to build modern factories in 20 cities or counties annually for ten years. - Are North Korean troops involved in the war in Ukraine?
Yes, according to Ukrainian officials, thousands of North Korean soldiers have been deployed to the Kursk region, with plans for further increases in troop numbers.
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