It’s time for another round of our weekly “Market Trends,”
which provides us with an opportunity to explore economic developments in
detail. The boiling hot summer months are upon us here in South Korea. The heat
wave that began last month has continued unabated and the weather in North
Korea is similar. To hear more, we turn to reporter Kang Mi Jin. Could
you give us some insight on how the people are coping with the oppressive heat?
I’d be happy to. I’d like to start by pointing out an
important distinction. Even though the heat wave is in its prime in South Korea
right now, the widespread use of air conditioners and fans makes it more or
less tolerable. Even those who have fans in North Korea don’t really have the
chance to use them.
The mobilization
calls for residents to labor for no compensation for long hours. Every district
throughout the country is in the prime ‘mobilization season’ at the moment.
Planting rice under the scorching hot sun is back-breaking, sweat inducing
work. I remember it well and thus feel so sorry for them.
Certainly. This brings me to my next question. I’m curious
how the residents cope with the heat. How do they avoid ailments like sunstroke
and get through the day?
The first point I’d like to make is that the North Korean
people have a tremendous resiliency, and have shown a remarkable ability to deal
with both extreme heat and cold. The residents know that submitting to the
difficult conditions would be counterproductive to their own wellbeing, so they
simply try their best to endure. They know that the authorities won’t turn on
the electricity simply because the residents ask them to. That’s why they
search for their own methods of dealing with the heat.
The residents are given a day to complete their individual
or group mobilization assignments. They prefer to wake up early and get the
work done before the sun rises in the sky and the temperature soars beyond
tolerable levels. At around noon, when it gets dangerously hot, the residents
rest for about three hours by going to a nearby river or reservoir to cool off.
That makes a lot of sense. South Koreans like to cool down
these days by eating ice cream. Does North Korea have an equivalent snack that
people like to eat to help beat the heat?
Yes, they do. There’s an ice treat called kka-kka-oh [popsicles or ice cream bars]that is selling quite well at the moment in
the markets. Cold cucumber soup, sweet water [water mixed with saccharin], and yogurt are also popular. They also sell at different price points, from KPW 300 to KPW 500
and KPW 1,000. The price of cold cucumber soup is quite diverse, ranging from KPW
100 to 500, depending on the size of the bowl.
Another important point I’d like to add is that during the
summer months, the North Korean residents act on the idea that their diets are
insufficient by consuming rehydration salts and nutrient-packed milk.
Thankfully for the residents, yogurt has recently become more widely available,
so consumers don’t need to travel all the way to the farm to purchase goat
milk. Things have gotten a bit more convenient in that regard.
So it seems as if the residents are using the marketplace as
the key source of solutions to the problem of the summer heatwave. Can you tell
us a little bit about the yogurt you mentioned earlier?
I’d be happy to. Most regions in North Korea sell
Chinese-made yogurt. The yogurt is called Jeot-san-yu (loosely translated as
‘lactic acid milk’). There are two different brands available for North Korean
consumers to select from: Gompyo Jeot-San-Yu and AB Jeot-San-Yu.
The yogurt is usually sold in packs of four. There is a
price difference between Gompyo Jeot-San-Yu and AB Jeot-San-Yu. Gompyo sells
for about KPW 3,000 more than AB. When I inquired about this, my source joked
that North Koreans associate bears with good health (‘Gom’ means bear in
Korean), so they are willing to pay more. A four pack of AB costs KPW 6,500,
while a four pack of Gompyo costs KPW 9,200. Yogurt is selling quite well
because both children and adults like the flavor.
Considering that rice is selling for KPW 4,800 per kg in
Pyongyang, yogurt is selling for a premium price. Doesn’t this high price put
it out of reach for most residents?
Yeah, unfortunately that’s the case. The well-off are the
ones who can afford it. But regular people are also saving up in order to eat
it on occasion.
As rice planting season intensifies and the country’s
electricity is redirected towards the farms, it has become even harder for
residents to cope with the heat. This makes me wonder how the residents
compensate for this and deal with the rising temperature?
I think we should answer this question with an awareness of
regional variation. Ryanggang, Jagang, and Hamgyong Provinces have lots of
valleys, so residents there cool off by dipping their feet or going for a swim
in gorges and ravines. Compared to the cities, there aren’t as many markets
that sell kka-kka-oh but these frosty products are
nonetheless popular in the more rural areas. I had a friend who used to sell kka-kka-oh. When there was electricity at night, she’d stay up and make as
much as she could so she could go out and sell it the next day.
Unfortunately, the electricity was often not functioning.
She reacted by purchasing a generator, but rarely had enough money to buy fuel
for it. In fact, many people living in agricultural regions cannot afford to
buy foods or products to help cool down. They compensate by cultivating their
own vegetables such as cucumbers. They slice the cucumbers, put the pieces in
cold spring water, and add some red pepper paste to make an icy cold soup.
When I was living in North Korea, I used to love making cold
cucumber soup with vinegar. This kind of cold soup is something that can be
commonly seen at the agricultural mobilization sites. The aroma of cucumbers,
the deep flavor of the pepper paste, and the complementary flavor of the
vinegar combines to make a really delicious mix of flavors. If it’s stifling
hot outside, cold cucumber soup is a real savior.
You mentioned that the residents enjoy making cold cucumber
soup at home, but I’m wondering whether it’s also available for purchase in the
marketplace?
Yes, it is available and selling quite well. This has pushed
up the demand and price of cucumbers. The problem is that the season isn’t
quite right for growing cucumbers, so they are either grown in greenhouses or
imported from China. Right now, 1 kilogram of cucumbers costs about KPW 3,000
at the jangmadang. The price is pretty high, so the residents are using smaller
amounts of it in their soup in order to cut costs.
We have to remember that the residents use information to
steer their economic activity. Many of them predicted the rise in cost of
cucumbers and responded by planting large amounts in preparation and building
greenhouses. These growers also look to sell the product even before it becomes
available. These trends show us how the residents are responding to the rising
price of cucumbers in order to maximize their profits.
So it seems like you are telling us that the residents are
becoming more sensitive to the relevance of information for planning the timing
of their ventures. Is that correct?
Yes, that’s right. We’re also hearing from our sources that
small-scale, personal plots are not as financially successful. When I was
living in North Korea, I tried my hand at growing and selling cucumbers. But I
kept getting robbed by thieves and I failed to turn a profit. I even tried
germinating the seedlings inside my house to try to beat my competitors to the
punch.
On the other hand, some of the cucumbers that make it to the
jangmadang for sale have been smuggled into the country or brought through
customs. The truth is that North Korea does not have good refrigeration
logistics chains, which makes it hard to transport cucumbers. So the residents
have found a way to preserve cucumbers. First they put it in a plastic bag and
make sure no water can get in. Then they put the bag in a water tank or bucket.
Thank you very much for filling us in. Up until now, we’ve
heard all about the tactics that ordinary North Korean people use to get relief
from the summer sun. Let’s close “Market Trends” today with a run-down of
prices on the jangmadang.
Food prices in most markets have not seen much change
despite concerns over harsh international sanctions and their unintended
effects. The price of 1 kg of rice was 4,800 KPW in Pyongyang and Hyesan, and
4,900 KPW in Sinuiju. The cost of 1 kg of corn kernels was 2,000 KPW in
Pyongyang and Hyesan, and 2,100 KPW in Sinuiju.
The USD was trading at 8,010 KPW in Pyongyang, 8,000 KPW in
Sinuiju, and 8,000 KPW in Hyesan. The Renminbi was trading at 1,260 KPW in
Pyongyang, and 1,270 KPW in Sinuiju and 1265 KPW in Hyesan – a drop from last
week. Moving along, 1 kg of pork was selling at 12,000 KPW in Pyongyang, 11,400
KPW in Sinuiju, and 10,000 KPW in Hyesan. Gasoline is trading at 11,900 KPW per
kg in Pyongyang, 11,700 KPW in Sinuiju, and 11,100 KPW in Hyesan. Finally, 1 kg
of diesel fuel was selling at 7,500 KPW in Pyongyang, 7,600 KPW in Sinuiju, and
7,620 KPW in Hyesan.
*This segment reflects market conditions from May 30-June 5.
