[imText1]“Is it that the government deceives its people? If I knew that I could not receive the money, then I would not have sent it…”
In early February, Kim (now staying in China) who is a resident in Chongjin city of North Hamkyung province, sent some money to Park living in Taechun district of North Pyongan province, but Park could not withdraw even 10% of the remittance. Kim was outraged the fact, saying, “I sent the money because Park needed to buy some lucrative goods with which he was pressed for time. Yet we neither got the money back nor were we able to buy the goods.”
When North Koreans make a round for business, they usually carry their cash. However, it takes a full 5 days to go from Chongjin city of North Hamkyung province to Taechun district of North Pyongan province by train. Besides that, a bank clerk said, “I will guarantee the remittance.” So, I decided to send the money. The post offices of North Korea (called Chesinso) function same as the post offices in South Korea.
Kim asked the clerk in the Chongjin post office, “When is the remittance duly received?” The clerk answered “tomorrow”. So I felt free to send the money. It was equivalent to about 300,000 won ($100). On the other hand, Park who received a remittance notice ran to the Taechun post office with his identification card and seal. Yet, a clerk working at the Taechun post office gave only 30,000 won ($10), saying to “get the rest back after 3 months.” Park tried to get it back by bribing an official working at the Party and offering tobaccos and high-class liquors. However, he could not get even the half of the 300,000 won. He said that he is still in trouble with the post office.
Deposited Money in the Bank Remains Unpaid
Similarly, recently North Korea’s financial institutions do not have enough money to return, so that residents who entrusted their money often do not get it back.
Same goes for banks. which are state-run. The only bank that North Koreans can use. exists, but it can be used only by the wealthy people and high-ranking officials who have foreign currencies and trade organizations.
Banks encourage saving, but North Koreans usually do not follow it because of the low interest (saving interest: 3% and a loan rate: 6%). It is because they can get more benefits by doing business rather than receiving the low interest.
Frequent currency reformation is one of the reasons why North Koreans do not entrust their money in the bank. In 1947, 1978 and 1992, North Korea enforced currency reformations. In the 1992 currency reformation, North Korea returned only 390 won of the deposited amount in banks, and dealt with the rest of it as savings. It means that later it did not return any money, and the government deceived its people.
Even banks are like this so It is to say nothing of post offices. The post offices in North Korea have a system to carry out the remittance service of the Korean Central Bank by proxy. The remittance procedure is as follows.
First of all, after a remitter writes down the address and name of a recipient, he or she deposits a given amount of money in the post office concerned. Kim living in Chongjin uses the Chongjin post office. Then the post office telegraphs the Taechun post office, around which the recipient lives, with the news “300,000 won was remitted to Park living in Taechun of North Pyongan province.”
Then the Taechun post office sends Park a notice saying, “Draw out the 300,000 won which Lim living in Chonjin of North Hamkyung province remitted.” The recipient hands in his identification card, seal, and the given remittance notice. Soon he withdraws the money after being examined in the relationship with the remitter and who they are.
Although Kim and Park used the normal procedure, they could not draw out their money. Park demanded a chief of the post office to get the money back. But the chief just replied, “Even all of the money that the post office has does not amount to this money.” Then, to where did the money vanish?
