The area is being built to turn it into a billion-dollar tourist hotspot

North Korea has completed construction of a massive tourist zone on its east coast, state media reported on Thursday (June 26, 2025), a key project driven by leader Kim Jong Un for years to promote tourism.With "great satisfaction", Mr. Kim attended an inaugural ceremony for the Wonsan Kalma coastal tourist area that could accommodate about 20,000 visitors and said the country would build more large-scale tourist zones swiftly, KCNA news agency said.

However, while tourism is one of a narrow range of cash sources for North Korea not targeted by United Nations sanctions, the reclusive state did not have a major foreign partner for the Wonsan project against the backdrop of sanctions over its weapons programmes.

The tourist zone will open for domestic guests from July 1, KCNA said, without mentioning foreign tourists.

North Korea sealed its borders in 2020 at the start of the pandemic but has been slowly lifting restrictions since 2023.

It has allowed Russian tourist groups into the country but its capital and other parts of the country remain closed to regular tourism, though in April it held a marathon event hosting foreign runners.

Moscow and Pyongyang, both economically and politically isolated, have drawn closer as North Korea has deployed thousands of troops and supplied ammunition, artillery and missiles for Russia's Ukraine war.

The Russian ambassador to North Korea and embassy staff were invited as special guests for the Wonsan ceremony, according to KCNA.

The two countries have agreed to expand cooperation on tourism, restarting a direct passenger train service between their capitals for the first time since 2020.

"Kim Jong Un expressed belief that the wave of the happiness to be raised in the Wonsan Kalma coastal tourist area would enhance its attractive name as a world-level tourist cultural resort", KCNA said.

Mr. Kim has been rebuilding the seaside city of Wonsan, a vacation destination for locals, to turn it into a billion-dollar tourist hotspot. Development plans for Wonsan have mushroomed since they were first announced in 2014.