The communist regime announced in a statement the resort will be built in the coastal Kangwon province, which is an area used for the rogue nation’s controversial missile tests.
The statement does not provide specifics about the resort, but described the area as having a “famous sandy beach” that would put the country’s tourism on “world-level”.
The state-run KCNA news agency said: “When the tourist area is built, it will satisfy the demand of domestic and foreign tourists and will be the most ideal place to link various tourist destinations to the Wonsan-Mt Kumgang international tourist zone.”
Kim Jong-un revealed the plans as the country prepares to send athletes to the Winter Olympics in Pyeongchang, South Korea.
The move seems to be trying to capitalise on international publicity ahead of the games in order to boost tourism to the hermit kingdom.
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Due to heavy sanctions imposed on it by the international community, North Korea’s tourism is one of the country’s few lucrative industries left.
Experts say tourism is an important part of Kim Jong-un’s plans to boost the North’s economy.
The dictator is said to have spent all of the “slush-fun” inherited by his father on nuclear tests.
A source in China with close ties to Pyongyang’s elite said: “Due to Kim Jong Un’s extravagant spending, the slush fund from his father, Kim Jong Il, is running out.”
Last year the US banned its citizens visiting North Korea.
More than 237,000 Chinese visited North Korea in 2012 but the country stopped publishing statistics the following year.
This is compared to eight million Chinese tourists visiting neighbouring South Korea in 2016.
South Korean officials travelled to the Wonsan area to inspect facilities at the North Korean Masik Pass ski resort and the nearby Kalma airport – which has not had any international flights in the two years since opening in September 2015.
Wonsan and Kalma airports are also important defence areas.
They are used for large-scale artillery drills and as the launch site for dozens of missile tests in recent years.
Kim used the beach near Wonsan’s new airport to unleash an artillery drill which was described as the country’s largest ever by state media.
As part of unity activities surrounding the Olympics, the two Koreas agreed to hold joint ski training at Masik Pass.
South Korea’s offer to send a delegation risks giving North Korea legitimacy and much-needed cash, according to experts.
President Moon Jae-in is already facing criticism for plans to march under a unity flag and field a combined Korean ice hockey team.
But, he may come under further pressure if it is seen to be endorsing North Korea’s luxury getaway.