The booming trade in human hair from North Korea has helped sustain the country’s isolated economy, providing vital revenue to pursue its nuclear ambitions. The exports, including wigs and false eyelashes, were primarily sent to China, which is its biggest trading partner. The products are made with hair imported from China and assembled in North Korea, before being exported worldwide. However, labeling often states that the products were made in China, not North Korea. Despite international sanctions, North Korea has managed to evade restrictions through smuggling, cyber hacking, and exploiting its human resources. The effectiveness of sanctions is limited due to political gridlock and member state interests.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| North Korea’s human hair exports sustain economy | Economic reliance on hair exports | North Korea’s economy continues to rely on hair exports | Softening impact of international sanctions and revenue for nuclear ambitions |
| North Korea’s ability to evade sanctions | Ability to thrive despite sanctions | North Korea continues to evade and thrive despite sanctions | Governance system built on the suffering of its people |
| North Korea’s cyberwarfare capability supports weapons program | Use of cyber-attacks to fund weapons program | North Korea continues to use cyber-attacks to develop weapons program | Financial gain to support weapons program |
| Détente between Russia, China, and North Korea | Increased cooperation in defiance of sanctions | Russia and China provide support to North Korea in defiance of sanctions | Fallout from Ukraine war and criticism of China’s human rights abuses |
| Western struggles to monitor sanctions against North Korea | Difficulty in monitoring and enforcing sanctions | Continued violations of sanctions by North Korea and its allies | Lack of universal sanctioning coalition and political gridlock |