North Korea’s Russia war windfall transforms Kim’s regime

Wonsan-Kalma beach resort

North Korea appears to be enjoying an extraordinary financial and diplomatic boost from its support for Russia’s war in Ukraine. Under Kim Jong Un, Pyongyang has expanded construction, military capabilities and international ties — but the growing wealth is far from reaching most ordinary North Koreans.

Pyongyang lights up as Kim spends big

Satellite imagery shows the illuminated area around central Pyongyang has tripled since 2020, as the regime pours resources into new housing and showcase projects. Forty-storey towers, a vast hospital and the enormous Wonsan-Kalma beach resort are among the most visible signs of investment.

Imported Chinese electric cars, smartphone payment systems and better-stocked shops have also become increasingly visible in the capital. The transformation has prompted observers to describe North Korea as an unlikely growth story.

Russia is paying for Kim’s military machine

The biggest change is the deepening military partnership with Moscow. South Korean analysts estimate North Korea has earned billions from supplying ammunition and deploying troops, while Russia has provided oil, grain and military technology in return.

Ukraine estimates Pyongyang supplied a huge share of Russia’s front-line ammunition in 2024 and 2025. Thousands of North Korean troops have also been deployed alongside Russian forces, while further deployments have been discussed.

The arrangement has turned North Korea’s vast stockpiles and manpower into valuable bargaining chips.

N. Korean troops clear mines in Russia's Kursk region

Kim’s isolation is being replaced by influence

The rewards extend beyond money. Vladimir Putin visited Pyongyang in 2024, while Kim has strengthened ties with China and Belarus and appeared alongside Putin and Xi Jinping at major international events.

The regime has also unveiled new military hardware, including 5,000-tonne destroyers, underscoring how Russian cooperation could be accelerating North Korea’s capabilities.

But the boom stops far short of ordinary families

Away from the capital, the picture is much harsher. Rising food prices, currency weakness and limited access to foreign currency are squeezing households, while many women are being forced into work to protect family incomes.

Kim’s “20x10” plan aims to build factories across 20 regions every year, but experts say many projects lack reliable electricity, equipment and raw materials.

The result is a striking contradiction: North Korea may be richer and more powerful internationally, but experts warn its latest growth is being driven by geopolitical fortune rather than reforms capable of transforming the wider economy.

How North Korea has profited from its support for Russia