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 of 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 6,000 KPW in Pyongyang and
Sinuiju, and 6,200 KPW in Hyesan. The USD was trading at 8,260 KPW in
Pyongyang, 8,200 KPW in Sinuiju, and 8,320 KPW in Hyesan.
Moving along, the cost of 1 kg of corn
kernels was 2,300 KPW in Pyongyang, 2,250 KPW in Sinuiju, and 2,300 KPW in
Hyesan. One kg of pork was selling at 14,500 KPW in Pyongyang and 15,000 KPW in
both Sinuiju and Hyesan. Gasoline was trading at 9,000 KPW per kg in Pyongyang
and Sinuiju, and at 7,000 KPW per kg in Hyesan. Finally, 1 kg of diesel fuel
was selling at 5,500 KPW in Pyongyang, 5,100 KPW in Sinuiju, and 5,000 KPW in
Hyesan. This has been a rundown of the latest market prices in North Korea.
1. Thank you for the update on market
trends. I heard that starting next month, each family is required to pay their
annual fees, which looks like it will cause setbacks for homemakers at all levels
of society. Obviously, many people are upset with this. Today, let’s hear from
Reporter Kang on how these fees are affecting those around the country.
Well, I started working one month after
first coming to South Korea and have been paying taxes annually ever since.
Isn’t it mandatory for all citizens? I’ve never missed a tax deadline so I
guess I’m fulfilling my national duty. I’ve heard that many North Koreans are
upset with the upcoming fee season. South Koreans might not be able to
understand why those up North would be so distressed during the plentiful
autumn harvest, but I think people listening to this broadcast are nodding
their heads in approval.
The fee season officially begins in mid
October. During this time, Party cadres, Women’s Union members, General
Federation of Trade Union members, Youth League members, and Children’s Union
members are all required to finish organizational campaigns and pay annual
fees. I bet you’re curious how much Party membership runs?
1-1 I know that South Korean politicians
each pay roughly 2,000 KRW, but how much is it for Workers’ Party cadres?
It’s over 150 KPW per month. This really
might not seem like a lot to South Koreans, but to a North Korean, who doesn’t
even receive a proper monthly salary, it adds up quickly. But it’s not even
just the Party cadres that have to deal with this burden.
2. I feel like it would make sense for the
Party fee to come directly out of the cadres’ salary. Would you mind explaining
a bit about the average salary in North Korea?
Sure. I think if South Koreans heard about
wages in the North, they would be speechless. The average salary runs from
about 3,000 KPW to 5,000 KPW per month. And 3,000 KPW equates to roughly 375
KRW. Can you imagine the type of lifestyle you could afford on just 375 KRW a
month? Isn’t minimum wage in South Korea around 1,200,000 KRW per month? That’s
about 8,600,000 KPW. So, as you can see, the 2,000 KRW that South Korean
politicians pay doesn’t even compare to the 150 KPW paid by Party cadres in the
North.
3. So, you mentioned that Women’s Union
workers also pay membership fees. Would you mind covering how the fees are paid
and what kind of organization the Women’s Union is?
Of course. Women’s Union is actually an
abbreviation for the “Korean Democratic Union of Women”, which is an
extra-departmental body of the Workers’ Party made up mostly of homemakers.
Currently there are around 200,000 members. It’s well known in the North that
the Women’s Union is quite powerful, enough that authorities say “they are one
wheel of the wagon of revolution.” They have become a force to reckon with in
both the working world and daily life.
As of 2013, the monthly membership fee for
Women’s Union members rose from 20 to 50 KPW. While it might not be a lot of
money, the members criticize the policy, asking, “How can a nation that gives
nothing to its citizens and demands money from them be so poor?” They are also
required to attend a general meeting for annual fees from mid-October through
mid-November. Because they have to pay fees and finish the end-of-year foreign
currency earning campaign at the meeting, it can be quite stressful. I can
vividly recall attending these meetings in the past.
4. I know that most North Koreans join the
Children’s Union around age 10, but are they required to pay fees as well?
As far as I remember, there wasn’t a
membership fee in the Korean Children’s Union. However, that changes once they
join the Youth League. It’s been over 30 years since I was in the Youth League
(it was known as the League of Socialist Working Youth at the time), so I don’t
remember the specifics, but I know that the group has a regulation requiring
fees every month on the 10th. Also, those who are married end up joining the
Women’s Union, Trade Union, or the Party, while those who are single are
removed from the Youth League upon age 30 and either accepted into the Party or
automatically relegated to the Trade Union.
All of these organizations mandate
membership fees, of course. Having to join various groups and pay fees from
such a young age leads to a lot of dissatisfaction amongst the people. Who
would enjoy being forced to fork over hard-earned cash while getting nothing in
return?
5. I was thinking that the drop in market
prices due to the autumn harvest would make people more cheerful this time of
year, but I guess that isn’t the case. You mentioned that there is a general
meeting for annual fees. Is that the case for each and every organization?
Yes, that’s right. First of all, because
all North Koreans must be a part of an organization, most of them end up
participating in the general meetings as well. Some of the recent defectors
have mentioned that these meetings are a large source of stress and I couldn’t
help but think about how nothing has changed since I worked and lived in the
North.
I was a part of the Women’s Union for a
long time and became super busy every October when the annual fee meetings
began. It’s the same case for Party cadres and the various workers unions. In
addition to the end-of-year foreign currency earning-campaign and settling up
on fees, members are criticized by their peers on mistakes made throughout the
year. There is also an additional fee for missing out on annual mobilizations,
which increases for every mobilization missed.
Now you see why people are so unhappy this
time of year. Again, so much is asked of them with nothing in return. It’s
absurd to fine people for not participating in hard labor, when they aren’t
even compensated in the first place. This “missed labor fee” is surprisingly
common. Those who missed mobilizations pay it without exception.
5-1 When do they pay this fee?
The “missed labor fee” refers to the money
those who could not participate in mobilization must pay in return for not
working. Because all capable individuals are required to work, those who cannot
are penalized with the fee. There is no actual law mandating this fee and it
was started by the people as a loose system of equality. The system was
eventually organized, however.
Current as of this autumn, Women’s Union
members would have to pay an annual fee of 250,000 KPW to be recused from
mobilization. That’s actually quite a bit of money, considering that for
250,000 KPW one can purchase around 50 kg of rice. That’s why most members try
their best to participate in mobilizations. But, even trying one’s best, it’s
pretty difficult to work the whole year without missing a day here or there,
right? In that case, Women’s Union members pay 5,000 to 6,000 KPW per day of
missed work. This fine applies to regular workers as well.
5-2 Why is there both a 5,000 KPW and 6,000
KPW fine?
According to our sources, “The 5,000 KPW
fine is for relatively less difficult work while the 6,000 KPW fine is for
strenuous labor. Seeing as 5,000/6,000 KPW is only about 700/750 KRW, it might
not be a big deal to a South Korean, but that amount can purchase 1 kg of rice
in the North. That’s why people try their best to make it to each mobilization
day.”
6. It seems like collecting money from people
like this would result in a rather large pile. Can you elaborate on how the
collected fee money is spent?
That’s a really important question. It
would certainly put the people at ease if they knew where and how the money was
being spent. It’s said that the inminban [people’s unit] spend every last bit of the money
they collect each day. In the summer, they buy ice cream or juice to cool down,
and noodles or watermelon to share while they work. In the autumn and winter,
they buy twisted bread sticks, candy, or other snacks from the local jangmadang
(market) to enjoy.
Sometimes, when a lot of people are absent from
mobilization, they even collect so much money that they can’t spend it all in a
day. Of course, they just end up using it next time. In the Women’s Union, the
head of the each committee’s economic department manages the collections. In
the People’s Unit, it’s managed by the unit leader or the head of the Public
Health Unit.
Wow, time really got away from us. I hope
the vendors are flourishing with the start of the autumn season, but I’m still
worried that these end-of-year fees will cause a huge setback. To the North
Korean people, I wish you an abundant autumn harvest and will see you next time
when we discuss regional “servi-cha” prices and train prices.
*This segment reflects market conditions
for the week of October 5-9.
