INSIGHT: Private car ownership on the rise in North Korea, mostly among elite and entrepreneurs

BEIJING/SEOUL – Pyongyang Faces an Unexpected Problem: Traffic

From famine and nuclear tensions to international sanctions, North Koreans have long lived with serious and existential concerns. Now, residents of Pyongyang are confronting a far more ordinary urban headache: finding a parking space.

North Korea’s capital is experiencing a noticeable increase in passenger vehicles, leading to traffic congestion for the first time in the city’s modern history and prompting the development of new parking areas and electric vehicle (EV) charging infrastructure, according to three recent visitors and satellite imagery reviewed by Reuters.

The emergence of a car culture in one of the world’s most heavily sanctioned and economically isolated countries is striking. Signs of the shift are increasingly visible across Pyongyang. At several hotels, parking lots are now full, with vehicles spilling onto nearby streets. Cars line the areas around popular sites such as the Gold Lane bowling alley and Rakrang Market, a suburban commercial hub.

North Korean leader Kim Jong Un has also acknowledged the trend. In April, he visited an auto service facility where he inspected various vehicles, though their makes and models were deliberately concealed under silver coverings.

While North Korea’s official economic data does not capture the rise in automobile ownership—largely because U.N. sanctions prohibit the export of vehicles to the country—trade data from China suggests growing demand. Chinese customs figures show a sharp increase in exports of car-related goods such as tires, mirrors, and lubricants, indicating rising vehicle usage and maintenance needs inside North Korea.

The expansion of private car ownership follows legal changes in recent years that formalized ownership rules. Under the updated system, licensed drivers are now permitted to purchase one vehicle per household through state-approved dealers. However, analysts say car ownership remains largely limited to elites and the entrepreneurial class known as donju.

Reuters analyzed satellite imagery, verified social media content, and spoke with more than 10 sources, including recent visitors, businesspeople, and diplomats, to document how the growing presence of cars is reshaping Pyongyang—and the role China plays in supplying the vehicles and parts.

Peter Ward, a research fellow at the Sejong Institute in Seoul, said the policy reflects a broader state effort to regulate private economic activity rather than suppress it entirely.

“Kim Jong Un has allowed personal car ownership because it channels consumption through state firms,” Ward said. “Cars are sold by state dealers, serviced by state providers, and fueled at state-run gas stations. It stimulates consumption while bringing informal markets under state control.”

Despite the apparent modernization, North Korea’s growing reliance on vehicles has also deepened its economic dependence on China, its primary trading partner and the main source of imported automotive goods.

China’s foreign ministry said it maintains normal and friendly trade relations with North Korea and emphasized that companies must comply with relevant laws and regulations. North Korea’s diplomatic missions in Beijing and New York did not respond to requests for comment.

RISING TRAFFIC AND NEW LICENSE PLATES

Recent visitors report that traffic conditions in Pyongyang have changed significantly. License plates, traditionally blue or black for state and military vehicles, now increasingly include yellow plates indicating private ownership.

Aram Pan, a Singaporean photographer who has visited North Korea multiple times, said he experienced traffic congestion in Pyongyang during a recent visit.

“Main roads have become bottlenecks simply because there are now too many cars,” he said. “I saw over a hundred vehicles with yellow plates.”

Most of the vehicles observed were Chinese-made, according to Pan and other visitors. A foreign businessman who regularly travels to North Korea said parking in central Pyongyang has become increasingly difficult, with informal attendants now managing spaces and charging fees.

Electric vehicle infrastructure remains limited, but charging stations—particularly for electric taxis—have started to appear, according to visitors and a diplomat familiar with the country.

Although official figures are unavailable, analysts estimate the number of private vehicles is growing quickly. Some license plates reportedly now feature five-digit numbers, suggesting a rising registration base. Based on observed trends, North Korea could have more than 20,000 private cars within the next year, according to Jung Chang-hyun of the Korea Peace and Economy Institute.

CHINA’S ROLE IN THE AUTO BOOM

U.N. sanctions have prohibited the direct supply of vehicles to North Korea since 2017. Official Chinese customs data show only minimal legal vehicle exports in recent years. However, exports of automotive components tell a different story.

Shipments of passenger car tires to North Korea have surged to nearly 193,000 units in 2025—an 88% increase compared to pre-pandemic levels. Exports of rear-view mirrors have nearly quadrupled, while lubricants have increased by more than 150%.

Cars are believed to enter North Korea through informal cross-border channels along the 1,400-kilometer border with China, despite periodic crackdowns on smuggling.

Used-car dealers in northeastern China say vehicles often change hands multiple times before crossing into North Korea, making it difficult to track their final destination.

A wide range of vehicles has been observed in Pyongyang, including models from Chinese manufacturers such as Changan, Chery, and Geely, as well as European brands like BMW and Audi.

However, automakers say they do not operate in North Korea. BMW and Audi stated they are unaware of their vehicles being used in the country and emphasized compliance with international sanctions. Chinese manufacturers did not respond to requests for comment.

A CHANGING CITYSCAPE

As Pyongyang adapts to increasing vehicle ownership, the impact is becoming more visible across the capital. Underground parking facilities, once rare, are beginning to appear in new developments. Traffic congestion, once virtually unheard of, is now a growing feature of daily life.

“It’s crazy how dense traffic has become,” one foreign businessman said. “Yellow plates are everywhere.”

What was once a city defined by emptiness and control is slowly being reshaped by a growing number of cars—an unexpected symbol of change in one of the world’s most tightly restricted societies. -Reporting by Ju-min Park and Eduardo Baptista in Beijing and Brenda Goh in Seoul. Additional reporting by Reuters Visual Verification Team. Editing by David Crawshaw/Reuters