North Korea has recently begun officially permitting its citizens to own passenger cars. In a country where private ownership has traditionally been discouraged under socialist principles, this move is seen as an effort to gain a more accurate grasp of the domestic economy.
On Wednesday, South Korea’s Ministry of Unification confirmed that it is closely monitoring developments suggesting North Korea now allows private car ownership.
While North Korea’s civil law has long technically permitted individuals to own cars, the political and social climate effectively barred ordinary citizens from purchasing or using them freely. Aside from those held by high-ranking officials or foreigners, most passenger vehicles were typically registered under institutions or enterprises.
However, on February 6 last year, North Korea amended its civil law to allow citizens to own vehicles and livestock through a “legal registration” system. This phrase appeared for the first time in official legal language. The move suggests that North Korea has begun implementing a nationwide registration system to track vehicle ownership accurately.
News1 confirmed that Article 134 of the amended civil law (Subjects of Personal Ownership) now states that “citizens may own household items necessary for daily life, and, through legal registration, vehicles such as passenger cars and draft animals (livestock).”
By contrast, the 2007 version of the law—Article 59—allowed citizens to own homes, household goods, and vehicles like cars, but did not mention any registration process.
A defining feature of the North Korean economy has long been the presence of a vast informal sector, including marketplaces and a rising class of private entrepreneurs known as donju (“money masters”). This has made it difficult to measure economic activity accurately, and the North Korean regime has refrained from releasing related statistics to the outside world.
By formally requiring “legal registration,” the regime appears to be moving toward legalizing and integrating assets previously confined to the underground economy. This shift would allow authorities to quantify private wealth, exercise greater economic control, and potentially introduce taxes or registration fees on personal property.
Since the famine-stricken “Arduous March” period of the 1990s, North Korea has gradually cracked down on informal markets. Reports indicate that nearly 80% of donju have since disappeared, suggesting increased regulatory pressure. The latest amendment appears aimed at tightening enforcement and normalizing state control mechanisms.
Some analysts interpret the change as a reflection of evolving societal attitudes. The North Korean government may believe that citizens will no longer strongly resist formalizing what were once unofficial practices. However, others caution that the reform may be limited to elite segments of society.
Professor Lim Eum Chul of Kyungnam University’s Institute for Far Eastern Studies noted, “This move is likely designed to showcase North Korea as a civilized socialist state by allowing the privileged class to own cars, while enabling the regime to benefit from it. Though it could generate tax revenue through vehicle taxes, more importantly, it allows for transparent domestic economic management.”