Seoul: North Korea is estimated to have earned up to US$14.4 billion from its troop deployment to the Russia-Ukraine war and arms exports to Russia, a report revealed on Monday. The figures indicate a significant economic gain for Pyongyang amidst ongoing international sanctions.
According to Yonhap News Agency, the report by Im Soo-ho from the Institute for National Security Strategy highlights the economic impact of North Korea's involvement in the conflict. If North Korea fully collects payment for its troop deployments and arms exports, the intended reduction of hard currency earnings due to sanctions could be undermined. Pyongyang is believed to have dispatched troops on four occasions since October 2024, with over 20,000 North Korean soldiers involved.
Before these troop deployments, North Korea had already been observed shipping arms to Russia, as indicated by satellite imagery. From August 2023 to December of the previous year, North Korea is estimated to have generated between $7.67 billion and $14.4 billion in hard currency. Direct earnings from troop deployment, including soldier wages and death compensation, are projected at $620 million, with an annual potential of $560 million if the situation remains unchanged.
However, the actual compensation received by Pyongyang is estimated to be only 4 to 19.6 percent of the projected total earnings. The report suggests that confirmed compensation is limited to items identifiable through open sources and satellite imagery, with a high likelihood of additional compensation for sensitive military technology and materials in the future.