How Does North Korea Make Money? Exploring the Country’s Economic System

Introduction

North Korea is an isolated nation that has been ruled by a single family since its founding in 1948. The country has been largely closed off to the outside world, both politically and economically, and its economic system is based on a combination of central planning and state ownership of the means of production. Despite this, North Korea still needs to generate revenue in order to survive, and this article will explore the various ways in which the country does so.

Export of Weapons and Military Equipment

North Korea exports a wide range of weapons and military equipment to other countries, including missiles, tanks, aircraft, and other sophisticated weaponry. These weapons are sold to countries such as Iran, Syria, and Myanmar, as well as to non-state actors such as Hezbollah and Hamas. This type of activity generates a significant amount of money for North Korea, with estimates ranging from hundreds of millions to billions of dollars per year.

International Trade and Investments

North Korea also engages in international trade and investments with countries such as China, Russia, India, and South Korea. Through these activities, North Korea is able to generate additional revenue and access foreign goods and services that it would otherwise be unable to obtain. In addition, North Korea has recently begun to engage in foreign direct investment (FDI) in countries such as Vietnam and Thailand, which allows it to further expand its economic reach.

Tourism

North Korea also earns revenue through tourism. While the country has traditionally been closed off to the outside world, in recent years it has opened up to tourists from around the world. Tourists can visit places such as the Demilitarized Zone (DMZ), the Pyongyang Metro, and the birthplace of Kim Il Sung. While tourism is still tightly regulated by the government, it still provides an important source of income for North Korea.

Mining and Mineral Resources

North Korea is also known for its mining and mineral resources, which include coal, iron ore, gold, and zinc. The country is estimated to have reserves of more than 200 different minerals, and is believed to be one of the most mineral-rich countries in the world. North Korea is able to generate significant amounts of revenue through the exploitation of these resources.

Cybercrime and Hacking

Finally, North Korea has become increasingly active in the world of cybercrime and hacking. The country has been linked to a number of high-profile cyberattacks and hacks, including the Sony Pictures hack in 2014 and the WannaCry ransomware attack in 2017. These activities generate significant amounts of money for North Korea, and are a growing concern for governments and private companies around the world.

Conclusion

In conclusion, North Korea is able to generate significant amounts of revenue through a variety of activities, including the export of weapons and military equipment, international trade and investments, tourism, mining and mineral resources, and cybercrime and hacking. While the country remains largely isolated from the rest of the world, it is clear that it is able to generate enough revenue to sustain itself. Further research is needed to better understand the economic system of North Korea and the implications of its activities.