◆ People Lack Money, Leaving State Commercial Facilities Sluggish
— So are state-run shops actually doing well?
"The commercial network is far from profitable. Residents don't have money in their pockets, and distribution of goods is poor — some shops are sitting nearly empty. On top of that, plenty of people still prefer the jangmadang [markets], where prices can be freely negotiated. Shops have even started offering discounts on Saturdays to attract customers, but manufactured goods are barely moving at all."
Amid a chronic power shortage, the fact that the regime is cutting electricity to state-run factories in order to prioritize the commercial network reflects just how central the promotion of electronic payments has become to Kim Jong-un's policy agenda.
From March 1, North Korean authorities have been forcibly mandating the transition to cashless payments — including card transactions — while in principle banning the use of cash in state commercial outlets and business-to-business transactions.
Despite the regime's strong policy commitment, however, the entrenched realities of goods shortages, people’s limited purchasing power, and continued preference for the jangmadang are not obstacles that can be overcome in short order.
※ ASIAPRESS communicates with its reporting partners through Chinese cell phones smuggled into North Korea.
