North Korean restaurants in China are shutting down due to financial troubles. Over half of these establishments in Liaoning province have closed their doors.<\/p>\n
According to a Daily NK source in China, several North Korean restaurants in Dandong recently stopped operations, including Ryugyong Sikdang and Taebosan. Their staff and managers have returned to North Korea.<\/p>\n
This year alone, seven of Dandong’s approximately 10 North Korean restaurants have closed, mostly small to medium-sized establishments with fewer than 15 employees.<\/p>\n
Unable to cover rent costs, North Korean trading companies and entities that managed these restaurants have largely shut down operations, transferring management rights to Chinese businesspeople. While many continue as North Korean-style restaurants, they now employ only Chinese operators and staff.<\/p>\n
The recently closed Taebosan has already taken down its signage, though it’s unclear what business will replace it.<\/p>\n
These restaurants have lost Chinese customers due to their higher prices compared to ordinary eateries.<\/p>\n
“Business people use North Korean restaurants to entertain clients, booking private rooms for meals with performances, but regular Chinese customers find them too expensive,” the source explained. “A meal for four typically costs 700 to 800 yuan.”<\/p>\n
Large North Korean restaurants backed by powerful North Korean agencies continue operating, including Dandong’s premier establishments like Songdowon and Koryo Restaurant. These venues employ dozens of North Korean women who serve as both waitstaff and performers.<\/p>\n
North Korean trade delegations in China frequently use Koryo Restaurant for business meetings.<\/p>\n
However, even these larger restaurants are struggling financially.<\/p>\n
“My understanding is that Songdowon remains open only because it has strong institutional backing, not because it’s profitable,” the source said. “Chinese customers avoid expensive restaurants like these, so all North Korean establishments in China are facing difficulties.”<\/p>\n
The source dismissed suggestions that recent closures stem from political tensions between North Korea and China.<\/p>\n
“With China’s economy underperforming, North Korean restaurants are naturally failing. This isn’t about Chinese government opposition or North Korean authorities ordering closures,” the source explained. “If China’s economy recovers, North Korean restaurants could see a revival.”<\/p>\n