The claim that North Korea’s increase in car ownership is due to recent legal changes allowing private vehicle ownership has been challenged as a misinterpretation of the sequence of events. Critics argue that North Korean authorities, unable to control the already widespread private vehicle ownership, have simply formalized this reality through legislation.
On Tuesday, NK News, a U.S.-based media outlet specializing in North Korean affairs, reported that an analysis of annual disclosure data from North Korean insurance companies reveals that the trend of increasing private vehicles in Pyongyang has been ongoing for several years.
The analysis by NK News examined data from five North Korean insurance companies: the Korean National Insurance Corporation (KNIC), Future Re Company, Samhae Insurance Company, Polestar Insurance Company, and Rainbow Intermediaries.
The findings showed a dramatic increase in automobile insurance revenue for these companies, jumping from approximately 676 million KRW (about 465,840 USD) in 2022 to 4.09 billion KRW (about 2.8 million USD) in 2024 – a sixfold increase. NK News argues that this data contradicts the notion that the rise in private vehicle ownership is solely attributable to the Private Vehicle Law adopted by North Korean authorities in October 2024.
While acknowledging the limitations in information transparency and reliability, NK News notes that data from North Korean insurance companies has often served as a valuable indicator of the country’s overall economic and social conditions. As an example, they point to a sharp decline in life insurance premium payments by one insurance company in 2022, suggesting that COVID-19 deaths were significantly higher than the official count of 74 reported by North Korean authorities.
NK News further posits that the introduction of the Private Vehicle Law and the increase in privately owned vehicles in North Korea are not the result of a proactive decision by the authorities. Instead, they argue that these changes reflect the government’s inability to control societal shifts, forcing them to incorporate these changes into the legal framework.
The report concludes by noting that given the lack of information about North Korea’s vehicle ownership regulations, the 2024 law may simply be formalizing practices that had already been permitted through subsidiary regulations implemented a year earlier.