Products manufactured at the inter-Korean Kaesong Industrial Complex [KIC], evident of their growing popularity, are said to fetch more than triple the price of China-produced goods in North Korean markets. 

Also, the much loved South Korean Choco Pie snack that previously sold for exorbitant prices in the North¡¯s markets have taken a tumble, now lagging behind the popularity of bread made in the North, Daily NK¡¯s source reported.

A source based in North Pyongan Province reported to Daily NK on September 22nd, ¡°A new snack that closely resembles the taste of the Choco Pie from the South has been introduced in Pyongyang, and it has overtaken the chocolate-covered treat. But when it comes to KIC-produced goods, there is no match, leaving them in the top tier.¡±

He further elaborated, ¡°These days, there are all kinds of goods in the markets,¡± adding that ¡°no matter what kind of foreign products come in, they cannot beat KIC goods, which sell out due to high demand.¡± In North Korean markets, goods from South Korea, China, Japan, Russia, and elsewhere are brought in either through official or illicit trade routes. The products are then sorted by quality into ¡°good, average, and poor¡± with corresponding prices.

¡°With the KIC now back in full operation, products are spilling into the markets,¡± he explained. ¡°The goods produced there are not found in the Kaesong markets but areas such as Sinuiju [near the northwestern border] and Pyongsong [located an hour North of Pyongyang].¡±

Merchandise from the joint complex, such as clothes, shoes, and other mass-produced goods, sell for much higher prices compared to those from China, because not only are they new in the market, they are also considered scarce. The hefty price tag is believed to include a premium for the risk of smuggling the goods out of the heavily guarded industrial park and the bribes required to gain entry.

The items most popular with men are hiking boots, especially those made with special materials to withstand cuts from sharp objects like knives, and pants. Women, on the other hand, prefer goods for around the home, such as high-quality and sanitary cutting boards, the source told Daily NK.

¡°Top-quality pants from China in the Pyongsong market sell for a rather high price of roughly $10 USD, but KIC products sell for $30 USD,¡± he said. ¡°Although Chinese products use the best material they have, there¡¯s a big difference in the quality and degree of processing,¡± justifying why those who have used KIC-produced goods will invariably opt for them again, even if it means they need to pay more.

Authorities in the North try to keep a tight lid on goods from KIC trickling into the black market in an effort to prevent people from longing about life in the South. According to the source, this is why sellers or buyers refrain from using the word ¡°Kaesong¡± and simply say, ¡°Do you have goods from the Complex? Complex pants, or Complex shoes?¡±

While KIC products fetch good prices, the once popular South Korean snack Choco Pie is seeing a decline in its asking price. In June, Pyongyang demanded that South Korean companies at the industrial complex stop distributing Choco Pies to workers there, as officials had found it problematic that North Korean workers were saving the snacks and selling them in the markets. More recently, the northern workers have been receiving Chaltteok Pie [a chocolate covered rice cake from the South], individually packaged coffee, yulmucha [grainy tea made with Job¡¯s Tears], and candy bars.

¡°In Pyongyang, at the ¡®Geumeunsan Trade Company,¡¯ they have been baking bread for about a year,¡± the source said, adding, ¡°Of all the different kinds of bread, the most popular are the ones with butter inside, and they are less than 1000 KPW-- much cheaper than Choco Pie.¡±

The trade company is an affiliate of the Military Mobilization Department [Military Manpower Administration in South Korea], which deals with the procurement of military supplies among its many functions. They either directly import the goods or obtain them from military factories in various locations across the country, and oversee the manufacturing of military equipment and machinery.

Geumeunsan Trade Company maintains branches in multiple areas, including Rasun and Cheongjin, and the office in Pyongyang imports ingredients such as flour, sugar, and cooking oil directly from China. According to the source, the raw material prices are cheaper than in the  North¡¯s markets, and the products taste good, allowing it to monopolize the confectionery market there.

¡°The company has brought in foreign equipment and technology, putting it ahead of the South¡¯s Choco Pie in price and taste,¡± he said, concluding, ¡°This is why with the introduction of these different breads in Pyongyang, the price of Choco Pie [from the South] has dropped to 500 KPW from 1,200 KPW.¡±