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North Korea's Underground Empire 🤯
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Finlay Williams
August 24, 2024
2 minute wacky businesses, you can tell your buddies about 🧠
When you think about restaurant chains, Kim Jong-un’s Pyongyang Restaurant probably isn’t the first to come to mind. With over 130 locations in 12 countries, this state-run chain pulls in an estimated $100 million annually. Think of it as the North Korean version of McDonald’s, but instead of Happy Meals, you're getting traditional North Korean cuisine served with a side of money laundering.
Source: Google Trends
Spring Rolls and Espionage 🧐
So, why does this even exist? More importantly, how does a restaurant chain, run by one of the most secretive regimes in the world, actually manage to succeed? Founded in the early 2000s, Pyongyang Restaurant was initially a soft power play by Kim Jong-un’s regime to spread North Korea’s roots—and make a quick buck.
But this is where things get interesting, the restaurants aren’t just there to serve food. They’re part of a broader strategy to generate foreign currency, bypass international sanctions, and bolster the North Korean economy. It’s like a James Bond movie, but instead of gadgets, they’ve got bibimbap and karaoke.
What are the nuggets? 💎
🫕 Origin: Pyongyang Restaurant was born out of necessity. With a crumbling economy and mounting sanctions, North Korea needed a new revenue stream. Enter the restaurant chain—an idea that’s as much about espionage and propaganda as it is about food.
🫕 Pivotal Moment: The chain saw rapid expansion in the early 2010s, especially in Southeast Asia. Economic sanctions were tightening, and this was North Korea’s way of fighting back—by opening more restaurants.
🫕 Big Moves: In 2016, the UN started clamping down on the chain, suspecting it was being used for more than just selling kimchi. Some locations were forced to close, but the resilient ones adapted by going even deeper underground.
🫕 Controversial Methods: The restaurants are known to have a dual function as a cover for intelligence operations. Employees often double as government informants, tasked with gathering information on North Korean defectors or foreign individuals of interest.
🫕 Staff: The restaurants are run by local middlemen, who are required to send money every year to the North Korean government. The servers aren’t just employees either, they’re handpicked North Korean citizens who are sent abroad and live under strict surveillance. Think of them as North Korea’s culinary diplomats—except they’re ALSO required to send a significant portion of their earnings back to the government.
🫕 Challenges: The restaurants have faced challenges with defections. In 2016, 13 workers defected from a restaurant in Ningbo, China, sparking international headlines and the closure of several restaurants.
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