In this session of “Market Trends”
we look at a recent development in North Korea’s markets. These days,
used goods from South Korea in North Korea’s jangmadang [markets, official or otherwise] are
replacing used goods from Japan. To learn more about this development, we turn
to reporter Kang Mi Jin.
Yes, that’s correct. Daily NK has gotten verification from sources in North Pyongan Province that vendors in Pyongsong Market, North
Korea’s largest wholesale market, have begun replacing secondhand clothes from
Japan with similar products from South Korea. Similar trends were seen in other
markets as well, including South Hamgyong Province’s Sapo Market and
Ryanggang Province’s Hyesan Market. According to Daily NK’s sources, secondhand South
Korean clothing is beginning to get a reputation among the residents for
quality of needlework, shape, and fabric.
Is there any particular reason that these North Korean
merchants are beginning to favor selling the South Korean products compared to
the Japanese equivalent?
Before South Korean products began to enter the country,
Japanese goods were regarded as the finest available. But things have changed a
great deal compared to when I was still living in North Korea. At that time,
not many people knew about South Korean clothing, but nowadays many people have
one or two articles.
A rising swell of customers now goes into the markets
searching for South Korean products. But the authorities are cracking down on
the sale of goods from South Korea. That makes it difficult for the merchants
to sell the South Korean goods right out in the open. Sometimes, the merchants
try to deceive customers seeking South Korean goods by pretending that Japanese
articles came from South Korea.
It seems as if the North Korean appreciation for Hallyu
[Korean Wave] is a factor in the growing popularity of Korean goods. But back
to what you just said: What kinds of Japanese clothes do the merchants try to
pass off as South Korean-made? And how much do they typically cost?
Generally, pants that are called ‘tight pants’ (i.e. skinny
cut) go for sale at about KRW 130,000, and used versions sell for about KRW
35,000. Straight leg pants sell for about KRW 110,000 and jackets sell for
about KRW 190,000 when new. Used t-shirts sell for about KRW 5,000-30,000.
According to Daily NK’s sources, up until a few years ago, a
family was regarded as well off if they wore Japanese clothes. But now, those
who are able to afford South Korean clothes are looked upon as wealthy. The
fact that these clothes have become a status symbol is why the authorities have
had a difficult time cracking down on South Korean products.
I was living in North Korea in 2007 when I tried South
Korean shampoo for the first time. At that time, most of us were washing our
hair with face soap and dishwasher soap. I had a friend that showed me the
South Korean shampoo, and I had to admit that her hair looked quite silky and
it made me jealous. At around that point, North Korean residents began to turn
more to South Korean products. In this way, they came to signify wealth.
Normally, clothes have a tag indicating the country of
production. If that’s the case, why don’t North Korean consumers just look at
the tags to avoid being lied to by the merchants?
That is absolutely true for retail and wholesale under
normal conditions, but in North Korea things are a bit different. Because the
authorities crack down on and restrict all products with the label “Made in SouthKorea,” the merchants are forced to cut the tag off.
The security personnel charged with overseeing the crackdown
have to take action if they see a tag saying “Made in South Korea,” even if the
products are used. So the merchants really have no choice. That’s why consumers
refer to South Korean clothes are “tagless clothes” in the markets. It’s a way
for them to be discreet when asking about the contraband products.
In 2012, I bought dozens of used South Korean t-shirts from
a Chinese smuggler. We asked to send them over after they clipped the tags.
At that time, used South Korean clothes were being sold out almost as soon as
they were brought into the market for sale. It’s an indicator that the North
Korean consumers really trusted in the quality of South Korean products.
So it appears like this surge in demand is responsible for
prompting some of the more dishonest merchants to pass off Japanese goods as South Korean-made. Is that accurate?
Absolutely correct. These days, newlyweds have been wearing
South Korean clothes at their wedding receptions and receiving luxurious South
Korean products as gifts. My friend’s daughter wore a South Korean-made
traditional Korean dress [hanbok; “joseon-ot” in North Korea] at her wedding. She also gave a South Korean
watch to her son-in-law as a present. This puts both sides of the wedding party
at ease because it signals that the couple will live comfortably and be well
taken care of.
Interesting. Perhaps, this trend is also partially
attributable to the growing interest in Hallyu. On to the next question: Do you
think that the crackdown on South Korean goods is also one reason why Japanese
clothes are being branded as “Made in South Korea”?
Some of the merchants do actually have the South Korean
products. But if they get caught in any one of the frequent crackdowns, they
have to pay a bribe. So the merchants that actually have the goods tend to hide
them. The increased demand coupled with the difficulty of delivering the goods
is driving the price of South Korean goods upwards, and also inducing some of
the merchants to try to trick consumers into thinking that Japanese clothes are
the “genuine article.”
Should we also interpret this as an indication that the
quality is similar between Japanese and South Korean clothes?
Yeah, I think that is the case. Before South Korean products
crossed the Chinese border and appeared in the markets, North Korean residents
recognized that Japanese goods are high in quality. In the early 2000s, various
kinds of South Korean goods began spilling into the border regions, brought
over by smugglers and traders.
Also, goods such as coffee mix, ramen noodles, and “Choco
Pies” came into North Korea through the Kaesong Industrial Complex [An
industrial zone in North Korea joint operated with the South. It was closed
earlier this year after North Korea’s fourth nuclear test]. Starting at around
that point, South Korean products began to dethrone Japanese goods and claim
the premiere position. Although the quality and design are similar, residents
tend to seek out things made in South Korea.
It appears as if no crackdown will be strong enough to block
the resident’s desire for South Korean products. Thanks for that explanation.
In conclusion, would you mind providing us with a breakdown some of last week’s
market prices for us?
I’d be happy to. The price of one kilogram of rice held
steady at around KPW 5,000. Other than that, we saw a slight rise in other
prices.
One kilogram of rice cost KPW 5,315 in Pyongyang, KPW 5,420
in Sinuiju, and KPW 5,520 in Hyesan. One kilogram of corn kernels cost KPW 1,160
in Pyongyang, KPW 1,110 in Hyesan and Sinuiju. One dollar was trading at KPW
8,215 in Pyongyang, KPW 8,205 in Sinuiju, and KPW 8,230 in Hyesan. One yuan was
trading at KPW 1,270 in Pyongyang, KPW 1,235 in Sinuiju, and 1,240 in Hyesan,
representing an price rise. One kilogram of pork sold at KPW 11,000 in
Pyongyang, KPW 11,300 in Sinuiju, and KPW 11,150 in Hyesan. One kilogram of
gasoline sold for KPW 7,400 in Pyongyang, KPW 7,700 in Sinuiju, and KPW 7,800
in Hyesan. One kilogram of diesel sold for KPW 6,000 in Pyongyang, KPW 6,120 in
Sinuiju, and KPW 5,900 in Hyesan.
*This segment reflects market conditions from September 1-8.
