This is the top of the north pole as seen from the balloon, notice that he has the flag in hand ready to finish the game.
The North Pole is the place you need to be in order to beat your enemy Fredrik, The wind will natrually carry you here, although not straight. It is extremly diffcult if at all possible to get to the north pole with the starter Gas Canister so it is recommended that you land on islands for supplies. It looks like a big mound with a house on top, it also has snow on it, Another way to see if its the North Pole is to use a compass.
Once here you will want to take Fredrik's flag out and put in your Flag, doing this ends the quest of the game. It takes around 2-3 hours to get to the north pole, although it may take longer if you land on many many islands. It isn't required to get to the north pole in order to have fun. Enjoy the relaxing trip there, it will make it so much nicer.
Once you land there and replace the flag you can either get rid of the balloon because you will not need it anymore or you can attempt to keep going, Although this may be difficult since all the winds point towards the North Pole.