Under Kim Jong-un, North Korea has experienced growing economic markets, an emerging nouveau riche, and modest levels of urban development.

To what extent is North Korean politics and society changing? How has the growth of markets transformed state-society relations? This Element evaluates the shifting relationship between state, society, and markets in a deeply authoritarian context.

If the regime implements controlled economic measures, extracts rent, and subsumes the market economy into its ideology, the state will likely retain strong authoritarian control.

Conversely, if it fails to incorporate markets into its legitimating message, as private actors build informal trust networks, share information, and collude with state bureaucrats, more fundamental changes in state-society relations are in order.

By opening the black box of North Korea, this Element reveals how the country manages to teeter forward, and where its domestic future may lie.