Grand Theft Auto: North Korea & 1000 Volvos

By: Kevin Yeo

In the 1970s, several decades after WWII, North Korea’s economy was showing upward trends, despite their dependence on welfare. For companies, this was viewed as an untapped market and Sweden was one of the countries that shared this outlook. The country viewed this opportunity as a first-mover advantage. As a result, Sweden exported $70 million worth of goods to North Korea, mostly composed of industrial equipment to stimulate economic growth, including 1000 units of Volvo 144s, and established an embassy as well. These cars are still used in the streets of Pyongyang as the main form of transportation for tourists visiting North Korea. This is the largest recorded car theft in history. 

Several years after the lucrative trade agreement, the transactions stopped. The totalitarian state did not pay for their received goods. Since then, interest has been building and North Korea is yet to make a payment to this day. The country failed to meet payment deadlines with economic downturns. As of 2017, the interest accumulated to a whopping $322 million and Sweden still sends bi-annual payment reminders to North Korea for its expenses. 

Despite the fact that Sweden likely won’t be reimbursed, a positive outlook is the establishment of its embassy. Historically, Sweden has been involved in key diplomatic matters between countries with poor relations. In the case of its embassy in North Korea, it has been a place of diplomacy between North Korea and the rest of the world. In the past, when there were detainees in Pyongyang, the Swedish embassy often intervened to represent these individuals to return them back home safely. 

Works Cited

https://www.npr.org/sections/parallels/2017/12/04/547390622/how-1-000-volvos-ended-up-in-north-korea-and-made-a-diplomatic-difference (both source and image source)