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Since the mid-1990s, Pyongyang has been paralyzed by the national distribution system, and the mayor has taken on the role of failing to provide enough food and living necessities for Pyongyang residents. According to the analysis, the re-formation of the urban space in accordance with the economic structure of the Pyongyang region is as follows: First, the planned economic system in Pyongyang city is weakened and the market economy system is strengthened. Second, as the overall privatization progresses, the city's economic space has been formed. Third, trading companies under the privileged institutions of Pyongyang are exercising exclusive authority. They exports ore, aquatic products, agricultural products, and labor power, which are national property. And imports part of export money from China as food and daily necessities, distributing it nationwide and creating enormous wealth. This labor exploitation and monopoly is regarded as showing the appearance of early capitalism. As Pyongyang changed from a planned economy to a market economy, the market expanded due to changes in its distribution structure. In addition, production bases spread due to changes in production structure. Changes in the financial structure have also contributed to the expansion of the money market. This merger of distribution, production, and finance has resulted in the re-formation of the urban structure of Pyongyang as a huge market economy system has been formed.