This is “NK Market Trends,” bringing you
weekly updates on the North Korean economy. This week we sat down with reporter
Kang Mi Jin to discuss the latest trends; but first, let’s take a look at how
the jangmadang [market] has been doing.
We’ll begin by providing a rundown on the
price of rice, the currency conversion rates, and the cost of other goods in
North Korean markets. The price of 1 kg of rice was 5,150 KPW in Pyongyang,
5,200 KPW in Sinuiju and 5,500 KPW in Hyesan. The USD was trading at 8,200 KPW
in Pyongyang and Sinuiju, and 8,155 KPW in Hyesan.
Moving along, the cost of 1 kg of corn kernels was 2,000 KPW in Pyongyang and Sinuiju and 2,300 KPW in Hyesan. One kg
of pork was selling at 14,000 KPW in Pyongyang and Sinuiju and 15,000 KPW in
Hyesan. Gasoline was trading at 9,300 KPW per kg in Pyongyang and Sinuiju and
at 8,500 KPW per kg in Hyesan. Finally, 1 kg of diesel fuel was selling at
5,100 KPW in Pyongyang and 5,300 KPW in Sinuiju, and 5,500 KPW in Hyesan. This
has been a rundown on North Korea’s latest market prices.
1. We’ve caught word that residents are
purchasing lots of watermelon as a way to combat the summer heat. Can you
explain the situation to us in a bit more detail?
Yes, the average temperature in North Korea
these days is hovering around 30 degrees Celsius. Ice cream and watermelon is
the best for cooling off, isn’t it? In South Korea, preserving cool fruits and
refreshing drinks is easy because refrigerators are widely owned items, but
that’s not the case in North Korea. This means access to frosty treats is that
much harder. These days, the temperature swings from about 22 degrees to 35
degrees. It’s unfortunate that residents have such a tough time getting a
hold of a cool beverage or fruit on such scorching days. According to an
inside source at the market, one watermelon is going for about 13,000 KPW right
now.
2. My word. That seems like an awfully high
price when you consider the low income of most residents….
That’s absolutely correct. The price of one
kg of rice in the Yanggang Province Market is 5,500 KPW, which means you could
buy two kgs of rice for the cost of a single watermelon. This puts it out of
the reach of normal folks. Watermelons are grown in greenhouses and are
available all year round in South Korea, but North Koreans have to buy
imported watermelons from China that are preserved by being inserted into holes
in the ground. The price gets pushed up so high because importers take their
cut and there’s also an import duty. There is a limit to the fruit that is
stored in this manner, so this lack up supply also increases the price.
3. Outside of watermelons, what is the
situation like for other fruits?
The price of one pineapple at the Hyesan
Agricultural market is 10,000 KPW. Of course, this is a pricey purchase, at
roughly the cost of two kg of rice. Pears go for about 10,000 KPW for one kg,
or approximately four pears. Even though it’s brutally hot and the residents
are working extremely hard, most fruit is simply outside the price range of
most residents. Heat is bearable, but hunger is harder to tolerate. So the
residents invest in grains and other more economical foods.
Bananas go for about 2,500 KPW a piece. An
informant told us that because of their prohibitive cost, bananas are usually
reserved for special occasions only. We also hear that bananas are
occasionally present at meetings, or bought from vendors deep in the mountains
for the Chuseok holiday or a wedding. I once visited my father’s tomb to
perform ancestral rites and happened to see one resident offer up a banana to
his ancestor, only to eat it whole (peel and all) moments later. A source has
informed us that most residents are familiar with the word banana, but most
have not had the chance to actually try one.
Ever since trade with China was invigorated
in the early 2000s, bananas and other exotic fruits began to turn up in the
market. Before that, people did not really encounter them. Hence, the story
about the gentleman who ate the peel. Since they are so expensive, most people
can’t afford them and vendors tend to stick with offering regional fruits such
as apples, pears, and churi. I guess you wouldn’t know what churis are, right?
They call them jadu (plums) here in South Korea.
4. Refrigeration facilities are old news in
South Korea, and most people here are now totally accustomed to reaching into
the fridge at their convenience. Given that refrigerators are out of the price
range of most residents, I’m interested to learn about what kinds of methods
are used to preserve foods.
Because of this insufficiency, North
Koreans have become expert in the art of using nature to do the job of modern
technology. There are cold springs that flow in mountainous regions. Digging a
hole and putting watermelon or other foods in the ground there is an excellent
way to preserve them. Oriental melons grew particularly well in Yanggang
Province, where I come from.
I would get some of these melons from a
local farm, put them in a plastic bag, and even sprinkle a little spring water
in there. That’s another way to preserve fruit. But you have to be careful. Our
house’s yard had a fence. Inside this fence was a spring well with fresh water
so occasionally people would stop by to get some water. One day, when I was out
to work I noticed all my oriental melons had disappeared. I assume that a
passerby went for water, saw the juicy melons, and couldn’t resist.
5. We’ve talked about how pineapples and
watermelons are too expensive for most residents to buy. But I wonder if there
are any cheap fruits that are top sellers in the market.
Good point. I’ve also considered that. I
agree that it would maximize profits to focus on the fruits that fly off the
shelves. I imagine such a sight brings a smile to the vendors’ eyes.
6. As you well know, South Korea’s goods
distribution networks are highly developed, so it is easy for people to buy
what they want when they want. We’ve received reports that it would be no
exaggeration to say that North Korea’s distribution networks are in a state of
paralysis. Given the sorry state of North Korea’s infrastructure, how are goods
move about?
Yeah, that’s definitely the case. North
Korea’s energy shortages and blackouts are chronic. And we have an abundance of
testimonies that indicate the transportation system is truly paralyzed. For
those that want to take the train, it is necessary to pack a few day’s worth of
food and stick it out for a multiday ride, even though the distances are not so
great. A lot of vendors have reported that their foodstuffs went rotten before
they even got to market because of the train delays.
In 2005, I tried to buy fish at Kim Chaek
and ride a train to Hyesan in order to sell them at market. Even though my bags
were about 50 kgs, it’s sometimes preferable to walk because the trains were so
unreliable. I was forced to stay in one place for three days to wait for the
electricity to resume. I had about 180kg worth of fish at that time, so even if
I wanted to walk, it wouldn’t have been practical. Once the luggage is over 50
kg it’s best to either stick it out or try to walk to a nearby city with more
reliable electricity. These days, ‘servi-cha’ are all the rage. Inside reports
suggest more residents use ‘servi-cha’ than trains. It’s a bit more expensive
than a train ticket, but it’s faster, more reliable, and there’s less chance of
foodstuffs spoiling in transit.
7. Which fruits are doing really well at the
market these days?
These days a special North Korean fruit
called “baeksalgu” is in season and selling really well. This “more sweet than
sour fruit” is produced in North Hamgyeong Province’s Hwei-ryang area. It is a
type of apricot. Because of its popularity, the fruit has been designated
natural monument number 439. Baeksalgu is soft, so it easily rots, but overripe
fruits can either be canned or used to make alcohol. Normally one kg of
baeksalgu goes for about 12,000 or 13,000 KPW. Because it is in season these
days, baeksalgu is selling even better than apples.
8. So from what you’ve told us so far, it
seems that residents hoping to buy one kg fruit will need to spend the
equivalent of two kg of rice. That means that fruit must be considered a wallet
breaking purchase for most residents, no?
That’s absolutely the case, but residents
readily pay the steep price because they’re quite fond of fruit. Sometimes
residents opt to go and pick wild berries and fruits from mountainous regions.
In Yanggang Province, there is a berry called “Mae-jeot.” It’s a sweet and sour
berry. There are also wild strawberries and raspberries. In this way, they
compensate for the expensive price of fruits in the market. When I lived in
North Korea, I used to take daily trips to the mountain to pick wild berries.
In those kind of mountainous areas, it’s hard to grow fruit, so we mostly ate
wild berries. Autumn blueberries will also soon be available. Wild berries tend
to grow from June to October, so this is a huge help for residents who love
fruits but don’t have the cash to spare.
9. The baeksalgu fruit that you mentioned
earlier: is that only produced in Hwei-ryeong?
Yes, from what we understand baeksalgu is produced
in Hwei-ryeong in Hamgyeong Province. That area produced about 70% of the total
baeksalgu yield. A special variety called the Changhyori is much cherished by
the people and had been designated at natural monument number 439.
10. It seems apparent to me that
transporting native fruits from their place of production to other regions for
sale would increase their price. Have we seen that effect in the market?
That’s absolutely true. So we do in fact
get a lot of regional variation on the cost of these goods. The vendors use
their skills at reading market conditions to make subjective judgments about
what an appropriate sales price is. After all, transport costs need to be
reflected in the final price in order for the traders to make a profit. Before
setting their prices, vendors sometimes take a look at the price of similar
products in the market. More often than not, there are runners and wholesalers
in the market. Wholesalers sell in bulk to the runners, who sell direct to the
customer. So, really it is the wholesalers who incorporate transportation costs
into the price. Of course, they are looking to optimize their profits all the
time. This is true for all products, not just fruit.
