North Korea is experimenting with capitalism, a far more explosive business than missiles, German weekly Stern reported recently. The magazine said the North is tinkering with an antiquated form of capitalism under a political system that it described as "stone-age communism."

Car ads have appeared in Pyongyang and smartphone app stores have popped up, according to German businessman Nils Weisensee, who teaches capitalism to North Koreans.

The adverts for the North's Pyonghwa Motors cars, smartphone shops, nail bars and high-end restaurants all indicate a drift toward capitalism.

App stores are offline in the North, where Internet access is strictly controlled by the state, and customers download apps via cables.

In the streets of Pyongyang, brighter colors and more varied styles can be seen as well. Stern said the people driving the trends are the "first generation of industrialists."