The global financial crisis has even hit North Korea, via China.

A North Korean inside source, in an interview with the Daily NK on the 24th, said, "Exports as well as smuggling have been blocked. Everyone is worried about how far the financial crisis will go."

According to the source, Chinese traders and smuggling business partners cut the price of North Korea's exports and natural resources such as minerals and scrap iron by half. As a result, the North Korean market and well as national construction projects have been significantly affected.

North Korea's propagandistic media reported the collapse of the capitalist powers, including the U.S., due to the financial crisis, advertising that the North has nothing to do with the crisis.

Rodung Shinmun, the North Korean Workers’ Party publication, maintained in an article entitled "Financial Empires that have fallen into the Pit of Collapse," "The Hong Kong newspaper the Wenweipo derides the fact that the 'financial empires' are in a state of collapse. The U.S.' financial management system dominating the world has become a troubled lamp facing a heavy wind."

The fact that the current economic situation can be attributed to the U.S.' financial crisis is already well-known among North Korean citizens via North Korean traders, Chinese merchants, and smugglers.

"Chinese brethren who have been operating shops in North Korea have to close their business due to a lack of profit."

Kim Il Geun (pseudonym), a Chinese-North Korean who has recently set up a shop in North Korea, said in a phone interview with the Daily NK, "I had to close my shop starting last week. Others have had to close as well or have only been able to sell the goods that they had already in small quantities. They have not been able to bring in new products [from China]."

He continued, "People who operate shops in North Korea usually employ relatives or close acquaintances to run their shops and they themselves bring in the goods from China. Usually, they go back to that place (North Korea) once a month to oversee the operation of their shop and to participate in regular evaluation meetings."

"The shops have been relatively profitable until now and the Chosun (North Korean) government has taken care of us (Chinese merchants) well. However, due to the global economic crisis, business has not gone well recently." he also stated.

"At this rate, we will have to double the price of the goods, but then they will not sell. The problem is that the exchange rate (between Chinese and North Korean currencies) has to go up, but it has not, so we have no choice but to stop the sale of the goods," he said.

The source complained, "Even if there is an economic crisis, the situation is really dire. The Chinese people have been looking down on all Chosun people."

He argued, "A kilogram of scrap iron which cost 900 won (in North Korean currency) until a month ago is now 200 won. Even in a financial crisis, how can the price reduce by so much?"

"Exports and smuggling ceased, so North Korean people are deep in uncertainty."

Further, he relayed, "In the agricultural areas, a kilogram of Omija (a red dried fruit, a kind of a tea material) was priced at 8,000 won, but Chinese merchants are now saying they will sell it for 6,000 won. Nowadays, even the smugglers are not doing anything. Also, wood is piled as high as a mountaintop in front of the customs offices."

"The Hyesan Mine has also ceased exporting lead and zinc. With the stoppage in exports and smuggling, the price of goods in the jangmadang has jumped significantly. Winter is approaching, but army winter shoes now cost 10,000 won per pair," he said.

A source from North Hamkyung Province also said, "We have not been able to complete the houses that have been built already. Glass and tiles have not been allowed into the country, so the construction of houses in Yukjeon-dong in Hoiryeong may have to be stopped."

"According to a friend of mine who had gone to Rajin and Sunbong, there are no products going into China or Russia across the Onsung or the Tumen River. Even fish has not been exported because the Chinese side has reduced the price too much," he said.

The source expressed, "This is supposed to be octopus season, but Chinese merchants have not been seeking them out. People complain that the Chosun octopus is more expensive than the Chinese octopus."

He sighed, "In Hoiryeong's case, only three months worth of potatoes have been distributed as provisions. Some have said that wheat has not been threshed yet, but this year, since the rice for the army is a priority, it is not likely that more provisions will be given out to citizens."

"Corn costs 1,300 won and rice 2,500 in the jangmadang right now. It is fall season, so at least no household has been starving," he said.