World Economy Brief
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World Economy Brief
Satellite-Based Analysis of North Korea’s Market System
- Author Jangho CHOI
- Series25-18
- Date2025-06-24
The findings of this study suggest that satellite imagery enables a disaggregated analysis of North Korean markets by region, subregion, and economic actor, offering a multi-dimensional perspective on market dynamics. Specifically, the results indicate that North Korea’s markets have been expanding over the medium to long term. While COVID-19 containment measures and border closures led to a temporary contraction in market activity, they did not fundamentally reverse the trajectory of market growth.
Market activity was observed to increase in correlation with improved logistics and supply flows—that is, as more goods were delivered to markets, prices tended to fall, and commercial activity expanded. This suggests that the expansion of the state commercial system under the North Korean government—characterized by greater administrative control and intervention in markets—does not aim to suppress or dismantle markets. Rather, it appears to reflect an effort to regulate and integrate increasingly active markets by partially substituting private sector functions with the state-run commercial network. The intended outcomes include increased fiscal revenue and the provision of stable commodity supplies to the population.
Satellite imagery analysis remains at a relatively early stage of development in the context of North Korea. As a result, some of the derived indicators have shown inconsistencies or produced controversial findings, underscoring the need for continuous methodological improvement through sustained research. Further validation is also required to ensure that the various satellite-based indicators convey consistent and non-contradictory information.
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