Sang Lee

North Korea’s once-thriving markets are experiencing a transformation as the government intensifies control measures. Notably, over the past four years, there have been declining merchant activity and market closures stemming from deliberate enforcement actions involving plainclothes inspectors, permit checks, and seizure of unlicensed goods and foreign materials.

When Kim Jong Un visited the newly transformed “Amisan Automotive Technology Service Center” in spring 2025, what he praised as a “specialized comprehensive service base” represented something more complex than improved urban transportation.

Eighteen months have passed since North Korea implemented a tenfold wage increase (Cabinet Decision No. 23101-9, October 2023). This landmark decision—coming after 21 years of stagnant and extremely low wages—raises an important question: how has it affected people’s daily lives? The evidence suggests that real purchasing power has barely changed. Despite the nominal wage increases, market prices have risen sharply in parallel, preventing any meaningful improvement in living standards.