North Korea is experiencing rapid economic growth through military cooperation with Russia. The country has earned large amounts of foreign currency in return for arms exports and the dispatch of troops to Ukraine. Footage obtained from a Russian visitor shows changes in daily life in Pyongyang and other parts of the country. The same growth is widening social inequality and strengthening North Korea's military capabilities.

Military Tensions Along the Korean Border

• A Starbucks in South Korea near the border offers a view of North Korean territory.
• Across the border, North Korea has installed cannons aimed at South Korea. Multiple cannons were confirmed.
• According to South Korean media, the cannons have a maximum range of about 24 km.
• When a soldier waves a red flag, the cannons move in synchronization.
• Explosions were also confirmed on the North Korean side.
• North Korea is fortifying the area near the church by installing walls and barbed wire.

Diplomatic Context

• Kim Jong Un made a sudden visit to China last week and emphasized the importance of the relationship.
• U.S. President Donald Trump has expressed interest in a summit with Kim Jong Un. He linked the possibility to the APEC leaders' meeting in China next month.

Russia as the Economic Driver

Experts on North Korea state that Russia buys weapons openly, in defiance of sanctions. They describe the arrangement as a major war profit for Pyongyang. North Korea has received large sums of foreign currency in exchange for arms exports and the dispatch of troops to Ukraine.

Living Conditions in Pyongyang

A Russian citizen visited North Korea last month and recorded footage of Pyongyang.

• Urban environment: The streets are clean, and no litter was visible. The city is changing at a fast pace.
• Housing: The footage shows high-rise apartment buildings.
• Subway: Automatic ticket gates are installed. Long escalators carry large numbers of commuters, and the subway serves as a primary means of transport for citizens. Platforms are well maintained and decorated with large paintings. The trains are older, painted green and red.

Russian tourism is also increasing. A Russian travel agency filmed scenes of North Korea, and Russian media reported that a large number of Russian tourists visited North Korea this year. The Russian visitor has traveled to North Korea multiple times.

• Wonsan Kalma ski resort: The visitor previously visited this resort in the east of the country.
• Beach resort: Last year, the visitor toured a beach resort that Kim Jong Un's daughter, reportedly Kim Ju Ae, inspected. Footage showed North Koreans enjoying the facilities.

Imported Goods

Footage from a pharmacy at the beach resort showed Japanese products, including:

• Japanese vitamins and supplements
• Japanese stomach medicine

Recreation

• Zoo: A zoo outside Pyongyang features a large tiger monument. The tigers require substantial amounts of food. Footage indicates that the animals appear well cared for.
• Aquarium: The aquarium includes a tunnel tank where sharks swim overhead.
• Both facilities are popular recreational sites for citizens.

Economic Indicators

North Korea's gross domestic product (GDP) growth rate last year is estimated at 3.5 percent. This marks the third consecutive year in which growth has exceeded 3 percent.

Consumer Technology

• Mobile phones: A large smartphone event in Pyongyang last year showed audience members holding phones with lights, which illustrated the spread of smartphones.
• Usage: According to 38 North, a U.S. research institute that analyzes North Korea's politics and economy, about 7 million of the country's roughly 25 million people use smartphones.
• Retail: Phone shops display a range of models, and long queues form to buy them. Most devices are imported from China. They connect only to North Korea's domestic network.
• Applications: More than 1,500 applications are available, including games. Experts say the entertainment apps aim to draw users away from South Korean dramas and other foreign content.
• Digital payments: At least five electronic money systems operate in North Korea. QR code payments are also spreading.
• Electricity: Frequent blackouts once characterized North Korea's power supply. Charging phones and operating payment terminals indicate that the supply is now stable. The country's electricity shortage was once severe, but a stable supply is now possible.

Changes in Consumer Behavior

A visit to a pet shop showed that more people are buying pets.

Growing Inequality

• Experts state that the gap between rich and poor is widening. They say that when money begins to circulate, some people become wealthier while others fall behind. This pattern holds whether the income stems from war-related trade or other sources.
• The gap is most visible between urban and rural areas. It also exists within Pyongyang.
• Footage shows low, single-story houses with tiled roofs packed together beside high-rise buildings. Grass grows in the area, and some roofs have partly collapsed.

Military Development

Russian Funds and Regional Security

Experts say that funds from Russia are creating a significant threat to Japan.

Weapons Exhibition

• Kim Jong Un attended an exhibition with his daughter. The event showcased new technologies, including unmanned systems.
• Targets modeled on U.S. tanks and South Korean military facilities were destroyed one after another.
• Various drones appeared in the footage.
• At the exhibition, Kim Jong Un stated that strength guarantees peace and that peace is maintained through strength.
• North Korea announced plans to strengthen the development of unmanned aircraft and weapons that use artificial intelligence (AI).
• The Japanese government has been monitoring North Korea's drone development for some time. Analysts have stated that the threat of drones or unmanned aircraft from North Korea is not unrealistic.

Naval Expansion

• New destroyer: On September 6, North Korea held a launch ceremony for a new destroyer. The vessel is the country's second destroyer of the 5,000-ton class.
• Russian technology: An expert on North Korea's military states that the destroyer incorporates Russian technology. Analysts believe its air-defense missiles closely resemble Russian systems.
• Missile test: In July, North Korea tested a strategic cruise missile launched from the destroyer. The missile can carry a nuclear warhead.
• Plans: North Korea plans to further expand its navy over the next five years.
• Naval bases: Most of North Korea's naval bases are concentrated on the Sea of Japan coast.

Regional Implications

An expert on the issue assessed the impact on Japan as follows. Building costly destroyers and similar vessels is a major expense that North Korea is pursuing at an accelerating pace. Over recent years, Chinese and Russian fleets have moved together near Japan. The expert projected that North Korea's navy could join such operations within the next one to two years.

Expert Assessment

Experts state that North Korea remains poor. They distinguish the current situation from the period of famine, when people died of hunger. North Korea is strengthening its military using foreign currency earned through its arrangement with Russia. Experts warn that interpreting today's North Korea through past images is dangerous.