A restaurant with suspected ties to North Korea has reopened in Mongolia with a new name, likely violating U.N. sanctions that ban DPRK nationals from earning income overseas.
Pekkhwa Culture and Art Center opened its doors in Ulaanbaatar, featuring new wall decor but preserving “faux trees and leaves” decorations from the previous business, a source who visited over the weekend told NK News.
Formerly the Pyongyang Baek Hwa Restaurant, the establishment had been shuttered for years, with a handwritten note attached to the door reading “under construction” when NK News visited in July last year.
Pyongyang Papers, an anonymous blog, reported last June that North Korean workers were set to staff the restaurant shortly, presumably in breach of U.N. Security Council Resolutions 2375 and 2397 that mandate all overseas DPRK laborers return to their homeland.
The source who visited the revamped restaurant over the weekend told NK News that it is unclear who runs or owns the establishment, but a team of about a dozen people is working there, including North Koreans and some Mongolians in management roles.
New photos of the interior obtained by NK News show that while the restaurant’s appearance didn’t undergo many changes — a stage for live music and paintings on the walls are still in place — Pekkhwa now features call bells for summoning staff, akin to those widespread in South Korea.
Similarly, the restaurant still advertises and sells North Korea’s Taedonggang Beer, with a banner that appears to be from the former business visible in the new images.
The restaurant has leaned into its artistic image by retaining a mini-art gallery but moved it to the balcony section upstairs, according to the source.
“They’ve got an array of paintings and embroideries on sale, mostly typical Chosonhwa artwork,” the source said, using a term for North Korean art.
While North Korean paintings aren’t directly targeted by U.N. restrictions, the Security Council did slap sanctions on the DPRK’s leading Mansudae Art Studio in 2017.
NK News attempted to call the restaurant via a phone number posted on the front door last year, but the number has been disconnected.
Calling the number listed on the restaurant’s Facebook page (inactive since 2020) resulted in the person on the line hanging up when asked in English if the venue was taking reservations. Three other phone numbers the restaurant advertised in a 2018 ad were also inaccessible.
Similarly, the Daco Business Center that houses Pekkhwa and lists the venue next to the South Korean CU convenience store on its website didn’t respond to NK News queries about the eatery’s operations. The Mongolian foreign ministry was not immediately available for comment.
The Daco Business Center is co-owned by Mongolian citizens Dashdavaa Daryabazar and Solongo Ukhnaa, with Uyanga Dashzeveg listed as CEO, according to the Mongolian corporate registry. The database appears to lack information on Pekkhwa’s ownership, although a 2022 media report traced the venue to the DPRK Embassy in Mongolia.
Ulaanbaatar has also long maintained amicable ties with the Kim regime, engaging in trade, including of illicit goods, and hosting several other DPRK-linked eateries, like the Pyongyang Restaurant, Pyongyang Koryo Folk Restaurant and Urlag Restaurant.
Additionally, Mongolia was once a frequent recipient of North Korean laborers, particularly in construction and the cashmere sector, until U.N. sanctions blocked such cooperation.
Edited by Alannah Hill
Chad O’Carroll contributed reporting to this story.

Published Date:2025-05-07