Kim Jong Un funds North Korea projects with $7.7bn from Russia

September 13, 2026 at 10:48 AM2 min

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North Korean leader Kim Jong Un is directing at least $7.7 billion received from Russia over three years toward weapons and construction projects previously unaffordable. South Korea's National Intelligence Service reported the payments in May in exchange for arms and troop deployments to Russia's Kursk region. The total could reach $14 billion, compared with North Korea's 2024 GDP of $26.6 billion.

Key Facts

South Korea's National Intelligence Service estimates North Korea received at least $7.7 billion from Russia over three years, with total payments possibly reaching $14 billion.
North Korea's GDP was $26.6 billion in 2024, making the Russian payments equivalent to roughly 29% of annual economic output.
Kim Jong Un launched the '20x10' regional development program in January 2024 to build light industry factories in 20 cities and counties annually for 10 years.
Martin Williams of the Stimson Center says North Korea has several large programs to build factories and hospitals nationwide, plus a rural housing project of tens of thousands of homes.

Russian Payments

South Korea's National Intelligence Service reported in May that Pyongyang received at least $7.7 billion in cash and economic benefits from Russia over the past three years. The payments were made in exchange for weapons supplies and North Korean troop participation in the Kursk region. The agency estimated total compensation could reach $14 billion. North Korea's GDP was $26.6 billion in 2024, according to expert estimates cited by DW.

Domestic Spending

Kim Jong Un is using the funds for the '20x10' regional development program announced in January 2024, which aims to build modern light industry factories in 20 cities and counties each year for a decade. Martin Williams, senior fellow at the Stimson Center's Korea program, said several large programs are underway to build factories and hospitals across the country. Kim has ordered development of entire new districts in Pyongyang and a rural housing project involving tens of thousands of homes. Williams noted that a large new hospital in central Pyongyang stood idle for some time until medicines and equipment could be purchased.