It’s time for another episode of the weekly series Market
Trends, where we look at the latest developments in North Korea’s economy.
Although the weather is cooling down and autumn is setting in, most North
Koreans are busy with forced labor mobilizations. As a result, they don’t have
the free time to engage in leisurely activities like their counterparts in
South Korea. We now turn to special correspondent Kang Mi Jin for more.
Yes, that’s correct. North Koreans are busy as ever this
time of year. First of all, agricultural mobilizations take up quite a bit of
time. Additionally, residents are busy tending their personal plots to stock up
for the winter, and a large percentage of the population has been mobilized in
some way or another to participate in the North Hamgyong Province flood
restoration efforts. In the midst of all this, we’ve seen another fall staple:
the increasing practice of bartering to obtain products in places adjacent to
the marketplaces. This method often turns out to be cheaper than purchasing
goods with currency in the markets.
Can you tell us a little more about bartering practices in
North Korea?
Once autumn arrives, people all over the country can be seen
bartering for the goods they need. The goods typically traded in this fashion
vary from region to region. For example, Ryanggang Province is a big potato
producer, so residents there often trade potatoes for pears, which are produced
in Hamgyong Province. In North Hamgyong’s Kilju County, residents generate
profit by trading apples and pears for potatoes from Ryanggang Province.
Seems like a profitable operation. But, one thing strikes
me: potatoes are on the cheaper side, whereas apples and pears tend to be a bit
more expensive. How do they address this discrepancy in the barter deals?
That’s a good observation. They certainly aren’t traded on a
one-to-one ratio all the time, with the ratios varying according to location
and product.
Merchants can be clever by going to places where the
exchange ratio is favorable. In this way, they increase their profits. In
potato-producing regions, for example, the ratio of exchange is generally two
kg of potato for one kg of apples/pears. However, in an apple producing region
like Kilju County, the exchange is closer to one-to-one. The donjuLiterally "masters of money," donju refers to people who hav... More (newly
affluent middle class) travel from place to place to get the best rates and
maximize their profits. A couple of these trips can provide enough of a profit
for ordinary folks to purchase enough grain to last through the winter.
It seems like the North Korean people are really starting to
have a good understanding and appreciation for how pricing works in a market
system. One thing I am curious about is storage and transportation, which can
be tricky in North Korea because of the limited infrastructure.
This is a top concern: what can be done to protect the
quality of produce? Ordinary North Koreans have no reliable access to stable
refrigeration or electricity unless they provide it for themselves, so they
often use underground storage to protect their produce. Potatoes are much
easier to store than fruit. Residents focus a lot of attention on maintaining
the freshness of their fruit because they know that the value depends on it. By
digging a two-meter deep hole, produce can usually be stored effectively.
However, due to the difficulty of this preservation method, some choose to
extend the shelf life by drying and storing their fruits.
Bartering seems like a good way to maximize one’s assets
even in a financially tight situation. In addition, it makes it easier for
residents to purchase foods from all over the country and avoid over-dependency
on the authorities. Thanks for coming in today.
