Kathmandu— For years, North Korea was characterized by widespread electricity shortages and limited development; however, since 2020, the capital city of Pyongyang has experienced a dramatic increase in illuminated areas, signaling a significant shift in the nation’s fortunes. This unexpected prosperity is largely attributed to substantial income generated from supplying munitions and troops to Russia's war effort in Ukraine, with estimates suggesting North Korea earned between $7.7 billion and $14.4 billion (€6.7 billion and €12.5 billion) from these dealings between 2022 and 2025.

Signs of Economic Improvement

Satellite imagery reveals a tripling of illuminated areas in central Pyongyang since 2020, suggesting prioritized electricity access for new construction projects. In 2021, leader Kim Jong Un announced plans to build 50,000 new apartments in the capital, and construction has progressed, including unique high-rise buildings shaped like intercontinental ballistic missiles in the Hwasong district. Observers also report a more modern appearance to Pyongyang, with imported cars—including electric vehicles from China—and the adoption of QR code payment systems.

Russia-North Korea Partnership

The relationship between North Korea and Russia has become increasingly vital for both nations. The South Korean Institute for National Security Strategy (INSS) estimates that North Korea earns billions through munitions sales and troop deployment to Russia, while receiving crucial supplies in return—including crude oil, grain, and military technologies like those used in drone construction. Kyiv estimates that North Korea supplied half of the munitions Russia used at the front lines in 2024 and 2025, including self-propelled guns and ballistic missiles.

Expanding Political Influence

Kim Jong Un’s support for Russia has elevated his political standing and military power, demonstrated by the launch of two 5,000-ton destroyers. This marks a significant turnaround from 2021 when Kim publicly acknowledged shortcomings in the national economic development strategy and even shed tears during a party congress. He proclaimed at a subsequent gathering that “everything has fundamentally changed,” reflecting his newfound influence.

Uneven Distribution of Wealth

Despite the apparent economic growth, observers note that the benefits are not reaching most North Koreans. Rising food prices and devaluation of the national currency have negatively impacted many households, forcing more women into the workforce to maintain living standards. Kim has launched a “20×10” development program aimed at building modern factories in regional areas, but experts like Andrei Lankov from Kookmin University in Seoul are skeptical, citing issues with infrastructure and the limitations of a planned economy.

While North Korea’s partnership with Russia has brought increased revenue and political leverage, questions remain about whether this economic upswing will translate into improved living conditions for ordinary citizens or if it is merely bolstering the regime's power.

(With inputs from DW)

Originally published on abcnews.com.np.