Over the past four years, North Korea has quietly amassed a significant fortune. According to a recent report by a U.S. think tank, North Korea's cumulative foreign exchange earnings from 2022 to 2025 have exceeded four times those of the previous four years. South Korean and American research institutions admit that North Korea's economy is currently in its best state in 35 years—better than at any time since the collapse of the Soviet Union and the demise of the Council for Mutual Economic Assistance.
The turning point came in 2022, with the Russia-Ukraine conflict intensifying. With military pressures mounting on the Russian front, North Korea swiftly became a key weapons supplier to Moscow. Pyongyang not only cleared out its existing stockpiles but also activated multiple military production lines to ensure stable supply, securing long-desired foreign exchange and oil, as well as acquiring Russian defense technology in return.
Even more profitable has been the "export of human resources." Over ten thousand North Korean soldiers have entered Russia to fight, with additional engineering units and missile forces expected to join soon. Assuming a minimum monthly wage of $2,000 per soldier from Russia, this income stream is substantial—and most of it flows directly into the national foreign exchange reserves.
Yet North Korea remains realistic: such opportunities cannot be replicated. Once the conflict ends, these revenue channels will shrink. Therefore, they are simultaneously laying the groundwork for a second path: deepening cooperation with China.
Currently, rail, road, and air links between China and North Korea have been fully restored. The Dandong border checkpoint is bustling, while port facilities in northern North Korea see ships lined up continuously unloading minerals and loading cargo. In recent years, trade volume between China and North Korea has steadily increased—exports to China alone have surged by over 50% this year alone. Construction of the new Yalu River Bridge’s North Korean side is accelerating and is expected to be completed within the year, further fueling economic collaboration.
With improved economic conditions, the longstanding pressure strategy by the U.S. and South Korea has been effectively undermined. In its report, the U.S. think tank deliberately referenced the 2020 moment when a North Korean leader choked back tears during an apology over “hard times,” implying it would prefer North Korea remain impoverished so that sanctions relief could be used as leverage to force concessions. But reality has delivered a sharp rebuke: North Korea not only escaped hardship but now has even more financial resources to invest in national defense.
New destroyers and submarines have been unveiled one after another, and combined with battlefield experience gained from Ukraine, North Korea’s military capabilities are steadily improving. The military balance along the 38th parallel is quietly shifting. What worries the U.S. and South Korea most is North Korea’s nuclear arsenal—some forecasts suggest its nuclear capability may one day rival that of France. If realized, the security landscape of Northeast Asia would be completely rewritten.
The North Korean leader has seized what may be the most favorable historical window since taking power, using pragmatic strategies to improve both internal stability and external relations. While long-term development challenges remain, domestic pressures have significantly eased, and the material foundation for countering external encirclement is stronger than at any time in history. The United States may be furious, but it truly has little effective means to respond.
Original article: toutiao.com/article/1872951891840266/
Disclaimer: This article represents the personal views of the author.