North Korea's General Markets: Contraction or Collapse?

Apr 9
4 min read

April 8, 2026

Pyongyang citizens are buying goods at the Tongil Street Market, which opened in 2003.

The Emergence of Massive Multi-Complexes

Three years ago, in 2023, the Ryugyong Golden Commercial Center opened its doors on Rakrang Street (formerly Thongil Street) in East Pyongyang.

A scene of dining on the 3rd floor of the 'Kwangbok District Commercial Center,' North Korea's first large-scale supermarket, which opened in January 2012.

The history of large-scale "Commercial Centers" (supermarkets) in Pyongyang began in 2012 with the Kwangbok Area Commercial Center. Immediately after its success, North Korea initiated the "Thongil Street Commercial Service Network" project. A decade later, the Ryugyong Golden Commercial Center was completed—a complex seven times larger than its Kwangbok predecessor. This 20-story multi-complex integrates retail, luxury hotels, offices, and wedding halls.

A view of the supermarket on the first floor of the Pyongyang Daesong Department Store, renovated in 2019.

Notably, this shopping mall sits directly behind the Thongil Street Market. It is the equivalent of a massive hypermarket like E-Mart or Lotte Mart opening right in front of a traditional market in South Korea. This strategic placement inevitably threatens the dominance of the Thongil Street Market, which has long controlled the southern Pyongyang commercial district.

The Crisis of General Markets and the Return of the State

North Korea once formalized around 440 General Markets nationwide, modeled after the state-invested Thongil Street Market. At its peak, the Thongil Street Market attracted up to 150,000 daily visitors. However, the COVID-19 border closures and restricted operating hours led to a sharp decline. As imports dried up, market revenues plummeted, and many "Donju" (wealthy private investors) began fleeing the market scene.

The exterior of the Pyongchon District branch of the Golden Bee Store, which has expanded to over 20 chain stores since first opening in 2014.

Since the 8th Party Congress in 2021, the state has aggressively moved to restore the State-Run Commercial Network. This is not a return to the old, rigid planned economy, but a modernization effort that prioritizes "Living Convenience" through:

Direct Procurement: Sourcing products directly from production enterprises.
Agreed Pricing: Selling at "Agreed Prices" (market-proximate rates) rather than fixed state prices.
Profitability: Shifting state stores from mere supply points to profit-generating entities that compete directly with private markets.

Diversification of Retail Platforms

This transformation is unfolding through several distinct channels:

Convenience Stores & Supermarkets: The Hwangumbol (Golden Field) Shops, a chain of convenience stores led by CEO Ryang Seung-jin (trained by the NGO 'Choson Exchange'), has expanded to over 20 locations. New high-rise districts like Hwasong now feature 1–3 convenience stores per block.
Luxury and Multi-Tiered Dept. Stores: The remodeled Taesong Department Store targets the general public with a first-floor supermarket while offering high-end electronics and global luxury brands on upper floors for Pyongyang's elite.
Western-Style Brand Mimicry: New centers like the Rakrang Aeguk Kumgang Hall feature a layout similar to Western brands like IKEA or Starbucks, targeting upper-class consumers who previously traveled to Dandong, China, for luxury goods.

A view of the ‘General Commercial District’ established in the center of Ryomyong Street in Pyongyang, which was completed in 2017.

The Digital Frontier: E-Commerce

A significant shift is the rapid adoption of e-commerce (Online Shopping) among the youth. Since the 2015 launch of 'Okryu,' more than 20 online platforms, including 'Manmulsang,' now operate. These integrated platforms handle everything from food and medicine to train tickets, offering integrated payment and delivery systems.

Future Outlook: The "Local Development 20×10" Policy

The modernization of Pyongyang’s retail and the surge in e-commerce are naturally marginalizing General Markets. This trend mirrors the decline of traditional markets in South Korea due to the rise of hypermarkets and digital shopping.

A view of the ‘Ryugyong Geumvit Commercial Center,’ which was constructed and began operations on Nakrang Street (formerly Tongil Street) in East Pyongyang in 2023, and the ‘Pyongyang Kumgang Commercial District,’ which is currently under construction.

The state is now expanding this model to provinces under the "Local Development 20×10 Policy." This includes building "Comprehensive Service Centers"—complexes housing cinemas, gyms, and state shops—in every county.

Market Regulation: The state strictly prohibits products from new local factories from entering private markets.
State Monopoly on Essentials: Since 2023, grain sales have been restricted to official Grain Specialized Shops, and imported goods are being funneled exclusively through state-run department stores.

Conclusion

The Ryugyong Golden Commercial Center, looming over the Thongil Street Market, symbolizes the twilight of the General Markets that sustained North Koreans for 30 years. While the restoration of state commerce in rural areas is still in its early stages, the completion of the "20×10" policy could eventually downgrade regional markets back to simple "Peasant Markets."

However, this transition depends on the state's ability to provide a stable supply of goods and establish a nationwide delivery system—tasks that remain challenging due to chronic shortages of capital, electricity, and materials.

🌍 Source: News1(“Reading North Korea” column by Jung Chang-hyun)

Jung Chang-hyun Director of the Peace Economy Institute

He completed his graduate studies in Korean history at Seoul National University, and served as a senior reporter at the Institute of Contemporary History of JoongAng Ilbo. He also served as an adjunct professor at Kookmin University and University of North Korean Studies, and as an advisory committee member of the National Archives of Korea.