As North Korea’s Economy Grows, Kim Jong Un Is Stronger Than Ever
Yahoo World · 2026-08-13
North Korea's economy is reportedly growing, a development that has primarily solidified Kim Jong Un's power and enriched the regime. This growth, however, has not significantly benefited most North Koreans, particularly those outside Pyongyang, who continue to face severe survival challenges. The state has actively suppressed private merchants, forcing them into government-administered storefronts, which redirects profits directly to the central government, thereby restricting cash flow for average citizens.
This economic strengthening is intertwined with deepening geopolitical alliances. China, in particular, is improving both its economic and military ties with North Korea. A 1961 pact commits both nations to offer immediate military aid in the event of an unprovoked attack. This military alignment serves China's strategic interests, acting as a counterweight to Russia and balancing Japan's military expansion, while also enhancing Beijing's options regarding Taiwan. The regime further leverages exploited North Korean labor to fuel its growth and accumulate capital.
*The full article also explores the specific sectors driving this economic growth and the human cost of these policies.*