North Korean prices are continuing to rise.

Defector Lee Hae Sun (assumed name, 36), who lives in Gangsuh-gu, Seoul, had a telephone conversation with family who came over the border, and revealed on the 9th that the “Current inspection of Jangmadang by North Korean authorities is so extreme that the price of goods has risen excessively” and that “families are complaining about the increased hardship.”

Lee conveyed that nowadays at Sunam Jangmadang in Chongjin City, the price of rice is 1,200 won (40 cents) for 1kg, corn 300 won (10 cents), a bottle of oil 2,000 won (67 cents), pork 2,500 won (83 cents), and pants made in China 20,000 won ($6.67).

As it is spring, not only is it a time where the overall price of Jangmadang rice rises, but because the country is not distributing rations, the majority of people must depend on rice from Jangmadang. Also, rice sellers are taking this opportunity to further raise prices.

Lee, who entered South Korea in 2003, says she has already sent money to her family. The money sent through earnings from part-time jobs and resettlement money from the South Korean government has become a lifeline for her family, which is now dependent on her contributions.

100 Chinese yuan is 34,000 won at Jangmadang

Lee’s family, makes their living by selling goods made in China, ceased trade because of soaring prices and control of Jangmadang by authorities.

Lee added that while the authorities have restricted Jangmadang operations, there has also been a push to strengthen the regulations on Chinese goods, as there was an incident last May in Chongjin in which many children were hospitalized after eating sweets and taking medicine made in China.

However, the majority of goods available are from China, and controlling Chinese commodities in North Korea is like ‘shading the sun with the palm of your hand.’ Lee conveyed that in order to regulate the problem, police officers confiscate Chinese goods such as alcohol and cigarettes.

According to Lee, currently in Chongjin, 100 Chinese yuan is worth 34,000 North Korean won. Converted to dollars, this calculates to approximately $1 for 2,750 won.

In March, the exchange rate at Musan Jangmadang was 100 yuan to 37,125 won, or $1 for 2,970 won. The exchange rate for yuan has decreased since March from roughly 100 yuan to about 3,000 won.

Local factory workers mobilized to the village

The local factory that Lee’s brother works for in Chongjin, has recently closed its doors and has sent its workers to the village. Compared to reports on the state of factories in production in Pyongyang, the standards of local industries are extremely inferior.

This is due to local industries inability to recover following the economic breakdown of the mid-90s that led to acute shortages in equipment and materials.

According to a defector from Chongjin, “Recovery of factories is difficult as electrical equipment is often stolen and sold. Factories themselves want to rebuild, but are unable to aquire sufficient funds".

The most urgent problem is that of electricity. As it is farming season, all the electricity is being used for the water meter operations, with electricity servicing the villages approximately 10 hours daily. With electricity being supplied to the villages, the city is left in darkness.