State factories fail to dent consumer demand for S. Korean bread

That’s right. People are consuming more and more bread these days in the South. And according to a recent conversation I had with a contact in North Korea, bread is selling quite well in the markets over there as well. Vendors have been quick to recognize and respond to this trend. A number of trading companies have recognized the surging demand and made contracts with Chinese companies to enter the baking industry. 

When I was in the North, I was actually involved in the bread market for seven or eight years. I ate so much bread at the time that I don’t have much of an appetite for it anymore. Whenever I went on a trip or worked in the fields, I was sure to put some bread in my lunchbox. Today, we’re going to dig a little deeper into the changing tastes of North Korean consumers.  

According to sources inside the country, the number of North Korean consumers buying bread in the jangmadang [marketplace] is rising. Hearing this, I realized that tastes have changed quite a bit over the years. More people have become involved in the markets as a response to the increased marketization of the country as a whole. That has made them more mobile. Bread is also rising in popularity as a lunch food offered by the authorities at official events. The demand for bread is especially high when the weather is cold. For those who are on the move or enduring the cold weather, bread is usually better than cold rice.  

In North Korea, some individuals make their own bread while some businesses sell bread produced in specialty factories. The specialty factories are acknowledged by the authorities, so you might look at this as a form of certification. However, the merchants who sell bread baked in their homes don’t have any sort of license. Despite this, the homemade bread tends to sell quickly in the marketplace. 

If this kind of infraction were to happen in South Korea, the business would be in trouble and subject to fines. But that’s not the case in North Korea. People in the North even make and sell their own alcohol. Snacks and candies are also made and sold without a license.  

Yes, some of the richer North Koreans are adding to the demand for bread produced in South Korea. According to a source that I contacted recently, wholegrain bread and brown bread from South Korea are becoming particularly popular. One resident conducting business in China was surprised to discover that the types of bread they were importing were wholegrain bread and chocolate muffins. 

Of course, this trend of eating bread in Asia did not originate in South Korea. It came from the West initially. But bread became a hit in the South, and North Koreans watching Hallyu [South Korean cultural wave] dramas and movies picked up on the trend. It is a sign that in addition to affecting fashion and movies, Hallyu is even influencing culinary culture in the North.  

In relation to this spike in demand, North Korean state-run enterprises have been storming into the bakery industry. Despite these attempts, the state-run factories have failed to produce popular products. DonjuLiterally "masters of money," donju refers to people who hav... More [North Korea’s new monied class], traders, and even cadres all admit that South Korean-produced bread is the best. South Korean bread is even being distributed to department stores and markets. In cases where it’s absent, traders ask their Chinese contacts to supply it. 

We got some information on bread prices in Pyongyang. At the Independence Department Store on Independence Road, a five pack of wholegrain bread produced at the KumCup Food Factory sells for 19,000 KPW. That’s about 4,000 KPW for one unit of bread. That means that a single bag of bread costs the same as 4 kilograms of rice. So this kind of bread is too expensive for most ordinary people.   

However, even North Korean cadres think that bread produced in the North is lacking in flavor. Unfortunately, we weren’t able to ascertain the price of South Korean bread in time for the publication of this story, but we do know that demand is high.

Merchants are always on the go. That’s why they usually have some bread in their lunchboxes. Since they’re unable to afford the expensive bread that I told you about earlier, these “runner merchants” usually prefer to buy bread in the markets that’s essentially homemade. There are two types available, dry bread [like a biscuit] and steamed buns. The merchants choose to sell whichever one they prefer. 

One kilogram of bread costs 6,350 KPW. This makes it a little more expensive than rice, but not too burdensome. The homemade bread is produced from scratch and even fermented in the home, so it has more flavor than the factory produced stuff. That’s why it’s more popular. There’s also a kind of bread that costs 1,000 KPW – which is a hit with college students living in the dorms.