North Koreans have been allowed to own private cars for the first time, Korean media reported on Tuesday.
Although this move marks a significant shift in policy, experts believe it is unlikely to have a major impact on a society where strict restrictions on movement and travel remain in place.
On Tuesday, a spokesperson for South Korea’s Unification Ministry said Seoul was monitoring developments in North Korea after reports emerged that Pyongyang had begun allowing private ownership of passenger cars earlier this year.
“We are closely monitoring the situation,” the ministry spokesperson said.
Similar reports emerged in 2017, but at that time North Koreans were only allowed to register cars in the name of state-owned enterprises or government agencies. This year, it is reported that registration in the name of individuals has been permitted for the first time.
Experts have taken note of this development, but many believe that structural constraints in North Korean society are likely to limit its impact.
According to Lim Eul-chul, a professor at the Institute for Far Eastern Studies at Kyungnam University, private cars are considered luxury items in North Korea, and their owners are natural targets for state surveillance.
“In a society where freedom of movement is restricted and car ownership entails additional costs, there is no real incentive to buy a car,” Lim said.
Some analysts believe that this shift may be part of a broader effort to ease growing financial pressure on the regime caused by large-scale provincial development projects and increased arms production to support Russia.
Domestically produced cars
North Korea has its own car manufacturing companies. The country’s main car manufacturer is Pyeonghwa Motors, established in cooperation with a South Korean company.
Despite the breakdown in relations between North Korea and South Korea, the joint venture operated for several years, producing a limited number of cars.
Pyeonghwa Motors’ range included passenger cars, trucks and SUVs. Among the most famous models are the Hwiparam (similar to the Daewoo Matiz) and the Junma (based on the Mercedes-Benz E-Class). These cars are produced in small batches and are mainly used by government agencies.
Despite tough international sanctions, car imports to North Korea continue. On the streets of Pyongyang, one can see vehicles from brands such as Mercedes-Benz, Toyota, Nissan and Volkswagen.
