Why did the collapse of the Soviet Union hurt North Korea’s economy?

The collapse of the Soviet Union in 1991 severely damaged North Korea’s economy by removing a critical pillar of its financial and material stability.

Prior to this collapse, the North Korean regime relied heavily on foreign aid and economic support from Moscow and its eastern European satellite states. When these communist regimes fell, North Korea was abruptly deprived of most of its primary trading partners and the majority of its external assistance.12

The impact was compounded by a shift in regional dynamics: China, while continuing to provide some materials, began demanding cash payments in 1992 rather than continuing the previous system of grants-in-aid or credit accounts. This sudden loss of subsidized support, combined with the country's rigid command economy and subsequent natural disasters in the mid-1990s, triggered severe economic hardship, widespread food shortages, and malnutrition throughout the nation.12