North Korea’s ambitious home-building project in Pyongyang, after grinding to a halt in certain areas since Kim Jong Eun took power, has reportedly been handed over to private entities to complete. This means the state has given up on finishing its “Pyongyang 100,000 Homes Project,” in effect acting as proof to its failure to come lay the proper economic plans required for its completion.

A source in Pyongyang told the Daily NK on September 25th, “Construction on the 100,000 homes that had become an eyesore in the area has been resumed by individuals.” He added, “The authorities have given people who have the money permission to buy their own raw materials and continue on with construction. 

The housing project began in 2009 under the command of then leader Kim Jong Il. With the goal of completing the project by 2012, construction began in 13 districts simultaneously, including Mangyongdae, Ryongsong, Morangbong, Potong River, Sadong, and Nakrang. In the initial stages, this project was seen as the opening to the era of a “strong and prosperous state in 2012,” a slogan touted by Kim Jong Il, who died in 2011.

However, as struggles continued in securing raw material, signs of uncertainty emerged in the early stages of construction. Following direct orders from Kim Jong Il, the area surrounding Mansudae [Changjeon Street] within the central district received priority in construction, and other districts on the outskirts, such as Sadong and Nakrang, that did not involve the interests of high-level officials came to a halt.

The source in the capital explained, “In the end, the state determined it is unable of completing it, so it’s telling people to do whatever they want with it,” adding that “to encourage people with money to get involved, they have allowed the owners to keep 50 percent of the income, after paying the rest to state coffers.”

“During this process, the authorities have emphasized owners will have to procure their own cement and any other material,” he elaborated. “Despite this, the fact that people will have the right to officially sell the units has piqued the interest of the donju [the new affluent middle class] .”

With such orders from above, some areas have picked up again in construction thanks to the participation of those with money. According to Daily NK’s source, some places have even revised plans for a 10-story building to a 20-floor structure in order to make more money off the project.

“In areas like Hadong District, construction has reopened since late July, and material is being brought in endlessly,” he said. “Since the state isn’t doing it, company heads or affluent owners are paying workers to make up for the lack of manpower.”

The privatization of this project indicates Pyongyang is losing its foothold in running its planned economy, as capitalist traits continue to rapidly emerge. Individuals owning shops in marketplaces and department stores are in this same vein.

Not only that, considering the North had planned to highlight this project as a “great achievement of Kim Jong Eun,” the fact that it gave up and went against a commitment it had made to its people could later challenge unity under Kim’s leadership.

“The people there didn’t believe it when they were told construction for their homes will restart, and only after seeing it actually happen were they relieved,” the source asserted. “Some welcome the decision saying private companies with money will be better than the state.

Others have criticized the move, making comments such as, “The son [Kim Jong Eun] has abandoned the work of his father [Kim Jong Il],” and “Perhaps he’s worried there will be another collapse and has pulled out of it.” The vast majority have also questioned the decision saying, “It is hard to understand how ‘scientifically-constructed homes’ are considered important, while the ‘100,000 units’ are abandoned.”

The source also reported that people have bashed the state’s decision to claim 50 percent of the profits from the project, and explained that many have voiced concerns, stating, “Construction companies not only need to make profits, they also need to pay the state 50 percent, so it is highly unlikely they will use good construction material.” This is also leading them to believe “the homes may come with ridiculous price tags.”

These worries are compounded by other anxieties that “once these private homes are nicely built, Party cadres will no doubt try to claim good places for free,” and lamentation that, “in the end, nice homes will never end up coming to us.”