◆ "Kill the Donju" Policy
In August 2023, the Kim Jong-un regime issued a decree titled "On Thoroughly Prohibiting Material Transactions and Foreign Currency Circulation Outside State Control." The decree aimed to restrict individual economic activities and ensure that all material distribution and management proceeded only under state control, with the maximum penalty for violations being death. The main points of the decree were:
○ Strictly prohibit the use of foreign currency.
○ When individuals engage in retail or wholesale of state food supplies or materials handled by trading companies, they must register with the Commercial Management Bureau and report the food and goods they handle in advance before selling. In principle, this should be conducted through state distribution networks such as state-run stores.
○ The decree is a measure to prevent individuals from freely transporting, storing, or setting prices for materials and food.
○ Thoroughly crack down on individuals hiring people, as this is an anti-socialist phenomenon.
ASIAPRESS reporting partners unanimously agreed that the goal of such policies was to "kill the donju."
As later became known, the Kim Jong-un regime had been pursuing strong anti-market policies since around 2020, leading with legal revisions and institutional reforms. They completed a food rationing system through grain sales offices, activated state-run stores, and significantly diminished the status of jangmadang. Private business became possible only under the condition of thorough registration with state agencies.
Through this, the Kim Jong-un regime established a state-led "New Economic Order." Under the new system, the donju lost their survival space and were pushed to the brink of extinction.
So what exactly is this New Economic Order that seeks to drive out the markets and donju that had flourished for over 20 years and establish state control over the economy?
In the next installment, we will examine the structure and core policies of the Kim Jong-un regime's "New Economic Order" through North Korea's latest laws and reports from internal sources. (To be continued)
※ ASIAPRESS communicates with its reporting partners through Chinese cell phones smuggled into North Korea.
