(PYONGYANG) – North Korea generated as much as $22 billion (£16.3 billion) in foreign earnings between 2022 and 2025, almost four times the amount recorded during the previous four year period, according to a Bloomberg Economics analysis.
The increase highlights how the North Korean regime has found new sources of income despite extensive international sanctions, including cryptocurrency theft, trade with China and arms sales to Russia.
The additional revenue has helped strengthen the regime’s economic, military and political position. Bloomberg analysts said the North Korean government is now in a stronger position than at any point in the past 35 years.
North Korea remains one of the world’s poorest economies. Bank of Korea estimates cited by Bloomberg put its GDP at about $30 billion (£22.3 billion), compared with roughly $1.9 trillion (£1.4 trillion) for neighbouring South Korea.
The economy suffered a prolonged downturn after a period of growth in 2016, followed by tighter United Nations sanctions and pandemic restrictions. Economic activity began to recover in 2023, while foreign currency available to the regime rose sharply.
Conditions in Pyongyang have also changed. Bloomberg’s analysis points to more cars, wider smartphone use and growing access to taxi services, although these changes remain concentrated in the capital and other major cities rather than representing broad prosperity across the country.
At night, North Korea remains markedly darker than neighbouring China and South Korea, reflecting its limited electricity supply and much smaller economy.
China remains the country’s dominant economic partner, accounting for about 98% of North Korea’s trade, according to the analysis. China is the main destination for North Korean exports and the main source of imports and vital energy supplies.
Beijing’s support is partly driven by concerns that an economic collapse in North Korea could trigger a refugee crisis and greater instability on the Korean peninsula. China has therefore continued economic engagement despite disagreements with Pyongyang over its nuclear programme and other policies.
Another major source of revenue has been cryptocurrency theft. United Nations assessments and private research have linked North Korean state backed hacking groups to large scale cryptocurrency theft.
Estimates cited in the Bloomberg analysis suggest North Korea may have stolen more than $2 billion (£1.5 billion) in cryptocurrency during 2025. The proceeds can be converted into major currencies and transferred through overseas financial networks to obtain goods and services for the regime.
Russia’s full scale invasion of Ukraine has provided another significant source of revenue.
The Kremlin’s demand for large quantities of artillery ammunition has created an opportunity for North Korea, which maintains substantial stocks of Soviet era ammunition and has the capacity to produce additional supplies.
The Center for Strategic and International Studies estimates that North Korea may have earned as much as $12.8 billion (£9.5 billion) from arms related deals with Russia.
The precise form of payment remains unclear. Some compensation may have been provided in cash, while other transfers may have involved goods, technology or military assistance.
North Korea has also unveiled military equipment that analysts believe incorporates Russian technology. Bloomberg cited a new North Korean destroyer as one example, with its air defence systems appearing to include Russian technology that could otherwise have cost more than $20 million (£14.9 million).
The cooperation with Russia may also have provided North Korean weapons manufacturers with experience from the war in Ukraine, potentially allowing them to improve their equipment and develop products for future exports.
The changing geopolitical environment has also strengthened Pyongyang’s position with Beijing. Chinese President Xi Jinping and North Korean leader Kim Jong Un have renewed high level contacts, while North Korea has become increasingly aligned with Russia.
The relationship between Washington and Pyongyang also remains a significant part of the story. Talks between Kim and then US President Donald Trump collapsed at the 2019 Hanoi summit after the two sides failed to agree on sanctions relief and North Korea’s nuclear programme.
North Korea subsequently increased its focus on nuclear weapons and military capabilities.
The Bloomberg analysis says the regime now regards nuclear weapons as central to its survival. North Korean officials have long argued that nuclear weapons are necessary to deter external threats and protect the regime.
Kim has also increasingly presented his daughter, believed to be Kim Ju Ae, at military and state events. Her repeated appearances have prompted speculation that she is being prepared for a future leadership role, although little is publicly known about her and her position has not been formally confirmed.
The regime’s ability to generate foreign income has therefore become central to its survival strategy.
Be First to Comment