North Korea has begun piloting car rental services in Pyongyang’s Hwasong district, signaling efforts to develop new service industries.
Former vehicle repair centers are transforming into multipurpose service facilities offering car rentals, cautiously introducing the concept of vehicle sharing to the isolated nation.
According to a Pyongyang source who spoke with Daily NK recently, the Amisan Automotive Technology Service Center (formerly Hwasong Vehicle Maintenance Center) is pioneering hourly and extended-period rentals for passenger cars and electric vehicles.
The facility previously focused on car repairs, parts replacement and battery exchanges but is now expanding into rental services, the source explained.
Kim Jong Un, during an inspection of the center last month, praised it as “a new hub that can improve the quality of vehicle technical services and meet demand through its specialized comprehensive service base.”
The rental program operates under central government direction following Kim’s guidelines, with joint planning from the Workers’ Party Economic Department, Cabinet, Pyongyang People’s Committee and Hwasong District People’s Committee. Officials intend to promote it as a “capital-led model” emphasizing modern transportation culture.
Renting a passenger car in Hwasong district currently costs about $100 for 24 hours, with additional fees for driving beyond city limits.
Renters must present their citizen ID and driver’s license. Rental periods range from one day to one month, with 10-15% discounts available for long-term rentals, according to the source.
The business model is noteworthy: wealthy entrepreneurs known as “donju” purchase and register vehicles for the service centers, then share profits with state institutions.
“Only trading companies, special agencies and major donju can enter this business,” the source said. “There’s growing recognition that vehicle rentals and construction will become more profitable than earning small change at markets.”
The Amisan Automotive Technology Service Center is named after Amisan Mountain behind the Ministry of State Security, indicating the center operates under a trading company affiliated with the state security agency. While ostensibly improving “service convenience for the people,” it effectively serves as a revenue stream for the ministry.
The rental service remains limited by vehicle availability and restricted service areas.
“Currently, five rental service centers operate in Pyongyang, with pilot operations beginning in Hamhung and Wonsan regions,” the source said. “After 1-2 years of demand and preference surveys, authorities will likely decide whether to implement the service nationwide.”
Each service center currently operates independently without unified national regulations, though the Cabinet is discussing safety measures such as restricted roads and prohibiting driving after 10 p.m., according to the source.
