A street vendor proudly trading in RMB. She holds in her hand a 1 yuan note. Photograph taken in Ryanggang Province in October, 2013 (ASIAPRESS)
◆ Impossible to survive off the North Korean won
In North Korea, the state budget is ostensibly set in North Korean won, with salaries paid to government and Workers’ Party officials in the nation’s own currency. For example. a middle school teacher earns about 2,000 won a month and high-ranking political officer receives about 8,500 won a month.
As of mid-November, however, the exchange rate value of 1,000 North Korean won is only about 130 South Korean won. Surviving off a national salary, therefore, is impossible. The current market price for a kilogram of white rice and corn, respectively, is 5,000 won and 1,700 won. Middle school teachers could only afford 500 grams of white rice a month on their salary.
As a result, the majority of North Koreans take side jobs as a way of earning foreign currency. With RMB and US dollars acting as the lifeblood of the North Korean economy, it is no wonder that North Korean banknotes are being treated poorly.
The sudden order for North Korean citizens to “better treat North Korean bills” seems to be a precursor to a wider crackdown on foreign currency.
In the words of the reporting partner, “Market traders are nervous, saying that there will be a crackdown soon. As soon as Kim Jong-un’s ‘criticism’ came down, they filled their bags with North Korean banknotes to have just in case of inspection. Actual transactions, however, are secretly conducted in foreign currency.”
North Korea’s economy continues to deteriorate in the face of UN Security Council sanctions. In particular, the drop in national exports has left the state with a severe shortage of foreign currency. Kim Jong-un’s words of criticism may represent the beginning of a crackdown on foreign currency and a ploy by the regime for collecting foreign currency held by citizens. (Kang Ji-won)
※ASIAPRESS contacts reporting partners in North Korea through smuggled Chinese mobile phones.
- ＜Inside N. Korea＞ Candle in the Wind: Burner Phones Bring Freedom of Communication But Now Face Crackdown (2019-12-11 09:37:41)
- ＜Inside N. Korea＞ The People’s Pipe Dream: "Trump will be impeached and the sanctions lifted" (2019-12-03 15:19:58)
- ＜Inside N. Korea＞ Bribery Bust-Up: Police Chief Replaces All Traffic Cops to Ensure Monopoly Over Bribe Money (2019-11-18 09:33:16)
- ＜Inside N. Korea＞ High Class: 5 Students Arrested for Smoking Meth at School (2019-11-05 10:26:33)
- ＜Inside N. Korea＞ Sexting Sting: Roadside Cell Phone Inspections Cause Embarrassment as Police Probe Data and Texts (2019-10-29 15:40:55)
Editor’s notes on North Korean reporters
ALL REPORTS >>>
ARCHIVE(pdf) >>
DPRK MAP >>
