
Pyongyang earns huge amounts of revenue from providing military support to Russia, which it uses for urban construction and military modernization.
AI-generated summary
North Korea has increased its efforts in the construction of Pyongyang's city center since 2020, and has recently obtained huge economic benefits by providing military support to Russia.
For years, satellite images of North Korea's nights showed only a few stars. But since 2020, the number of bright areas in central Pyongyang has more than doubled.
Information website NK News believes that this shows that the Pyongyang regime has prioritized the lighting of new streets and houses in the city center to promote its achievements.
North Korean leader Kim Jong Un announced in 2021 that 50,000 new housing units would be built in the capital. In the newly built Mars area, two 40-story residential buildings were built, which resemble the country's Mars intercontinental missile.
People who have visited Pyongyang for many years say it looks more modern. There are many imported cars - including Chinese electric cars; there are QR code payment apps for smartphones; taxis can be hailed; and Western brands of fashion and cosmetics are stocked in shopping malls.
On the east coast, in 2025, Kim Jong-un unveiled the five-kilometer-long Wonsan Kalma Beach Resort, which can accommodate 20,000 guests.
The source of these funds is estimated to be first of all through the high income from the Russo-Ukrainian war. According to a March report by South Korea's Institute for National Security Strategy (INSS), North Korea earned between $7.7 billion and $14.4 billion by providing ammunition and sending troops to Moscow. The economic research institute owned by Bloomberg estimates that military support for Russia brings Pyongyang more than 14 billion US dollars in revenue.
In addition, trade with China, North Korean overseas workers, export trade and cybercrime brought in another nearly $8 billion. In February 2025, North Korean hackers stole Ethereum worth US$1.5 billion. By comparison, North Korea's gross national product the previous year was $27 billion.
Kim Jong Un's role as a supporter of Russia has increased his political and military weight. The country has built two 5,000-ton destroyers. The dictator's status has reached a height not seen in 15 years.
During the COVID-19 epidemic in early 2021, Kim Jong-un tearfully admitted at the Workers' Party Congress that almost all economic sectors failed to meet expectations. At the next party congress five years later, he cheered: "Everything has fundamentally changed."
According to Ukrainian estimates, North Korea will provide Russia with half of the ammunition needed on the front line in 2024-2025, in addition to self-propelled artillery, multiple rocket launchers and ballistic missiles. Ukraine said that North Korea is currently planning to send a missile force of 90 soldiers to Russia, including six launchers and up to 120 missiles, to fight against Ukraine.
There are 16,000-22,000 North Korean soldiers helping Russia block Ukraine in the border province of Kursk and clear mines thereafter. Ukrainian President Zelensky said that Kim Jong Un also hopes to send another 30,000 to 50,000 troops to Russia. According to a report by South Korea's Institute for National Security Strategy, Kim Jong Un can earn US$2,800 per soldier, US$3,000 per officer, and US$6,000-10,000 per killed person.
Trade between Russia and North Korea is mainly barter: Pyongyang provides ammunition, weapons, and soldiers, and Moscow provides crude oil and petroleum products, food, and military supplies—from air defense systems to manufacturing technology for drones, missiles, and submarines.
Experts say the improvement in North Korea's domestic economy has not benefited the general public. Food prices rose and North Korea's currency, the won, depreciated.
In early 2024, Kim Jong-un promoted the implementation of the "20X10" development plan in areas outside Pyongyang. Modern factories are built in 20 cities or regions every year. In 10 years, 200 regional industrial projects will be formed.
But Andrey Lankov, a North Korea expert at Kookmin University in Seoul, believes that most of this plan will not succeed. Because these factories do not have the corresponding infrastructure. Moreover, operating factories according to the principles of planned economy is not suitable for small and medium-sized enterprises.
AI outlook — possibilities, not facts
North Korea will continue to promote the "20X10" regional industrialization plan, but faces the challenge of lack of infrastructure.
Likely · Within years

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