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North Korea Economy KDI Review of the North Korean Economy, June 2025 June 30, 2025

North Korea Economy

Monthly published paper on the current status of the North Korean Economy and major
issues on inter-Korean economic cooperation assisting academia, policy makers and corporate sectors to better understand North Korea

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LanguageKOR
KDI Review of the North Korean Economy, June 2025
June. 30. 2025
Summary
The June 2025 issue examines the transformation of North Korea’s tourism sector following the enactment of a comprehensive Tourism Law in August 2023, marking a strategic shift from regionally confined policies to a nationwide legislative framework. Initially developed in the 1950s as a tool for ideological propaganda, tourism evolved into an economic venture by the 1980s and, by the 1990s, became a key channel for securing foreign currency. Under the leadership of Kim Jong-un, the sector has gained prominence as a sanctions-resilient revenue source, spurring major infrastructure projects such as the Munsu Water Park, Masikryong Ski Resort, and Yangdok Hot Springs Complex. The upcoming June 2025 launch of the Wonsan-Kalma Coastal Tourist Zone―touted as Kim’s flagship initiative―introduces an integrated resort model aimed at promoting extended stays and upscale tourism.
Following pandemic-related disruptions, inbound tourism has cautiously resumed, with Russia emerging as the primary target market due to relatively low political sensitivity. In 2024, all foreign arrivals were Russian nationals. North Korea is now pivoting from its pre-pandemic China-dependent model―where Chinese tourists accounted for over 80% of visitors―toward a dual-market strategy focused on China and Russia. The sector’s future hinges on its ability to attract visitors and boost spending from these neighboring countries.
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