How has Kim Jong Un dramatically changed North Korea?

From carrot-flavored toothpaste and activated charcoal masks to motorbikes and solar panels, North Korean homegrown goods are taking up more and more space in the country's stores and supermarkets, replacing most imports from China.

The Trump administration is now considering tightening sanctions on North Korea to pressure the Kim Jong Un regime to dismantle its nuclear and missile programs. But recent visitors to North Korea say Pyongyang is pursuing a dual policy of developing both its military and economy.

North Korea boosts production and consumption of domestic goods. Photo: Reuters

Most consumer goods in North Korea are imported from China. However, under the leadership of Kim Jong Un, the country has made efforts to produce and sell domestic goods to avoid losing cash flow and to promote a sense of self-reliance.

According to Reuters, there is currently no accurate data on the proportion of domestically produced goods circulating in North Korea. Import figures from countries such as China and Malaysia are also difficult to accurately reflect.

China’s Ministry of Commerce declined to comment when asked whether its exports to North Korea were falling because of North Korea’s push to produce its own goods. However, visitors to North Korea describe how major North Korean companies such as Air Koryo, which operates the national airline, and the Naegohyang Group have been diversifying into consumer goods such as sportswear and cigarettes.

A Reuters team visiting Pyongyang in April found shelves stocked with locally produced drinks, biscuits and other staples. Other visitors saw locally produced canned goods, coffee, toothpaste, soap, bicycles and more on sale across the city.

“As many new factories have opened, labeling, packaging and listing of product ingredients have improved,” said a vendor named Rhee Kyong-sook, 33.

"I can taste the real fruit flavor in the drinks produced in North Korea compared to drinks from other countries," said Kim Chul-ung, a 39-year-old teacher at the store.

Visitors to North Korea say that North Korean products are becoming more sophisticated and diverse, with a wide variety of types and grades. Vendors are also becoming more competitive, often offering samples of their products to customers, a stark contrast to the sales habits of five years ago.

"Around 2013, Kim Jong Un started talking about the need for import substitution," said Andray Abrahamian of the Singapore-based Choson Exchange, which trains North Koreans in business skills. "There was a very clear recognition that too many goods were being imported from China, not just high-quality consumer goods but also things like food."

Traders and retailers admit that the North Korean market is very attractive right now.

"North Koreans are increasingly reluctant to use Chinese products because they find them of poor quality," said a businessman who exports consumer goods to North Korea. In addition, China has been hit by a series of food safety scandals in recent years, including contaminated rice and milk powder, which has also made North Koreans wary.

"Mothers in North Korea are just like mothers in China, Canada or other countries, they want to feed their children the best food they can. I saw customers in a store comparing Chinese and North Korean products and choosing the domestic product," said Michael Spavor of Paektu Exchange, an organization that brings investors and tourists to North Korea.

However, North Korea remains heavily dependent on trade with China, and most of its raw materials for manufacturing and consumer goods are still imported from China.

According to Vietnamnet.vn