Kim Jong Un is accelerating a nationwide push to provide state‑sanctioned leisure options for North Korean citizens. New luxury malls, beach resorts, ski sites and even pet shops are opening, offering residents a taste of modern amenities while keeping commerce firmly under government control.

State‑run leisure drives economic growth

Chinese customs data show a dramatic rise in imports of items such as massage equipment, treadmills, pianos and bumper cars over the past decade. Reuters analysis of trade statistics and state media reports, supplemented by interviews with recent visitors and defectors, confirms that these goods are being funneled into official leisure complexes.

According to Kang Seong‑hyeon, a research fellow at the Seoul‑based Hyundai Research Institute, the strategy “concentrates production, distribution and capital flows into an official economic space managed by the state.” By doing so, the regime tightens its grip on commerce, squeezes informal markets and creates new sources of revenue.

Growth despite sanctions

Even as the United Nations maintains sanctions on luxury goods, energy and mineral trade, North Korea’s economy grew 3.5 % in 2025, marking a third consecutive year above the 3 % threshold, per the South Korean central bank.

Visitors to Pyongyang report cafés serving cappuccinos, a luxury mall called Rangnang Aeguk Kumgang Service Complex, and the two‑year‑old Hwasong Taedonggang Beer Restaurant. Kim recently toured a new pet shop with his daughter, Kim Ju‑Ae, highlighting the regime’s focus on family‑friendly attractions.

Funding the leisure boom

The expansion is financed by a mix of cryptocurrency earnings, revenue from North Korean troops fighting for Russia in Ukraine, and exports of coal and other minerals. The Seoul‑based Institute for National Security Strategy estimates that the regime earned up to $14.4 billion from its involvement in the Russia‑Ukraine conflict between August 2023 and December 2025.

Analysts note that a growing middle class of roughly eight million people with savings and limited spending outlets creates pressure for domestic consumption. Ruediger Frank, a professor at the University of Vienna, says the leisure drive “reduces frustration, channels money away from essential goods like rice, and generates growth through domestic demand.”

Implications for diplomacy

With a stronger domestic economy, North Korea may feel less urgency to seek sanctions relief or restart nuclear negotiations with the United States. Nonetheless, President Donald Trump has publicly expressed a desire to meet Kim Jong Un again, a stance that aligns with the administration’s broader goal of engaging adversaries through dialogue.

U.S. officials have not commented on the proposed meeting, and the White House declined to provide details. China’s foreign ministry reiterated its commitment to trade and cooperation with North Korea while adhering to UN Security Council resolutions, emphasizing that sanctions should not harm the country’s livelihood.

Local attractions and visitor experiences

Since 2022, state media has highlighted increased coverage of tourism and cultural life. Notable projects include the Wonsan Kalma beach resort (opened summer 2025), five luxury hotels in Samjiyon, a ski resort under construction, and a waterpark with an unfinished equestrian club in the northeast.

Rowan Beard, co‑founder of Young Pioneer Tours, described packed beaches during a heatwave and noted that visitors often share rooms due to high demand. The Wonsan Kalma resort recorded over 300,000 domestic visitors in the latter half of 2025, according to China’s embassy in Pyongyang.

In the northeastern city of Rason, new saunas, pools, video‑game arcades and sports centers have emerged, according to a Chinese businessman identified only by the surname Cui.

Retail expansion

North Korean shoppers now encounter international brands at venues like Ryugyong Golden Plaza, which opened in 2023. Stores display logos of watchmakers such as Rolex, Omega and Herbelin, and an electronics outlet features Huawei branding. While the brands deny official retail presence, the visibility of these logos signals a shift toward higher‑end consumer goods.

Mobile payment apps modeled after China’s Alipay are widely used, enabling the state to monitor transactions and further integrate the economy.

Future outlook

Analysts suggest that the leisure and consumption strategy may eventually undermine private markets that emerged after the 1990s famine. By building state‑run commercial infrastructure, the regime aims to replace semi‑legal markets with official channels, reinforcing both economic stability and political control.

As North Korea continues to develop its domestic tourism and retail sectors, the international community will watch how these changes affect the nation’s diplomatic posture and its long‑standing nuclear ambitions.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.