In this session of “Market Trends” we look at skyrocketing
demand for a number of goods in the marketplace due to the massive flooding
that hit the northeast regions late August.
As you may recall, back in August, severe flooding in the
North Hamgyong Province swept away homes and key facilities, and has displaced
tens of thousands of residents. We’re now hearing more details about the extent
of damage to the area. One of the things we’ve also learned is that many people
who have lost their homes are relying on the markets to buy tools such as
shovels, so that they can repair and rebuild their homes.
Residents are buying these tools to clean up the debris and
waste that has piled up around their homes. Although prices have skyrocketed
due to the limited supply, residents have no choice but to make these
purchases.
One of the most conspicuous price jumps has been for
shovels. Usually 5,000 KPW is considered expensive for those made in North
Korea in factories or by a neighborhood blacksmith, but now it’s not even
possible to buy them for 6,000 KPW. I’ve heard in the city of Hoeryong in North
Hamgyong, Chinese-made shovels have jumped to 32,000 KPW.
Some of the soldiers mobilized for reconstruction work are
requesting leave in order to buy tools elsewhere, which suggests that they’re
facing an overall shortage in the materials and equipment required. Sources
report that people are worried that the price of hoes may jump to 5,000 KPW –
the price usually reached during the peak season for weeding or during tool
expos. The issue is that many residents in the areas hit by the worst flooding
don’t have enough money to buy these tools.
Big or small, North Korea does see regular flooding each
year. Does that mean tool prices usually jump around this time of the year?
Since the mid-90s, there’s been a lot of flooding in the
North and that’s because so many people have been cultivating small plots of
land to grow crops and sustain themselves. Due to the chronic lack of trees and
native vegetation, even a small amount of rain can lead to landslides and
severe flood damage. I haven’t looked into tool prices during past floods so I
can’t be entirely sure, but this year, they’re calling the flooding a major
disaster. I would imagine prices had risen slightly in the past, but this year,
the expectation is that prices will continue to rise for quite some time, expect for certain goods subject to recent price regulations.
A lot of people in that region have lost not only their
homes, but all the crops that were ready for harvest as well. These losses have
inadvertently caused a windfall for some vendors in the markets, right?
Right. A lot of people have had to set up temporary shelters on higher grounds,
within public buildings and other open areas, using plastic sheets. So plastic
rolls and other goods like boots are selling well.
Currently, thin plastic sheeting is selling for about
800-900 KPW per meter in the market, while the price of thicker plastic has
jumped by about 500-1,000 KPW from its original price. For those who have to
rebuild their lives from scratch, securing these rolls is an extra burden
weighing them down.
Another thing people in the region will have to worry about
is kimjang (making, sharing of kimchi) for next year, which they would usually
start next month.
Sources there tell me that a lot of people in places like
Yonsa, Musan, Hoeryong, and Namyang don’t really know how they’re going to make
a living, so more residents are giving up on the idea of kimjang, which they
rely heavily on as a staple source of food for at least half a year. Some of
the people had saved up money during the summer in the hopes of buying rice and
corn in the fall (when they’re cheap), only to lose everything in the flood.
These cases are not isolated incidents, so when you look at the overall damage,
it’s hard to know how bad things really are for those thousands of households
across the region.
When it comes to support for the victims, what does the
state do? Do people receive government aid of any kind?
In theory, the government is supposed to provide assistance
to the flooded areas, but that’s no longer the case. What the leadership does
now is force other residents to cough up money and tries to resolve the
problems that way. It’s the same with the recovery work. The regime mobilizes
people from other regions, but there are no good means of transportation and
people in most areas are busy with their harvest, so it’s not an easy task.
That’s why soldiers are being mass-mobilized. Just like last year, when the
Rason area was hit by floods, a large number of troops have been dispatched for
recovery work. But of course this all falls far short of what’s needed for this
year’s floods, so that’s why we’ve seen Pyongyang ask for international aid.
It’s likely the North’s fifth nuclear test has discouraged a
lot of outside parties from offering humanitarian aid, making things more
difficult for the flood victims. Thank you for sharing this with us today.
