Signs of anxiety have been observed in
certain areas near iron and steel mills as well as coal mines following strong
international sanctions implemented against North Korea. These come as mine workers seek to secure their finances by moving to smaller and more affordable
housing in anticipation of a prolonged period of stalled wages and tighter budgets at home.
“I haven’t seen any panic buying in
response to the sanctions, but an increasing number of people living in coal
mining areas like Hyesan and Musan are trying to sell their homes,” a source
from North Hamgyong Province told Daily NK on Monday. “In one particular
neighborhood, there was news that ten households are making efforts to sell
their homes.”
Sources in Ryanggang Province corroborated
this news.
The houses have been offered at relatively
cheap prices, ranging from 10,000 to 20,000 RMB (1.3 to 2.6 million KPW), but
“not a single person” has shown interest over the past month since they have
been put up for sale, the source noted.
Mining workers have already seen their
wages evaporate after sanctions were implemented, as salaries were paid in cash
from coal exports. With the funding channels cut off, state-run companies are
no longer able to provide for their workers, the source explained.
The abrupt halt on what had already been
intermittent payments has thrown workers’ livelihoods into greater
uncertainties. In addition, the halt on salary payments is dragging down
consumption and demand in the markets.
“Rice prices are not falling yet, but fewer
people are looking to buy goods in significant quantities,” the source said,
adding that complaints are surfacing about poor sales in the market.
There are also voices of concern that the
country’s economy will face a severe downturn if the relatively stronger
industries such as iron, steel, and coal production are forced to shut down.
“It seems the industry workers are
realizing that the days when the state sold minerals to prop up their
livelihoods are coming to an end,” the source surmised. “I hear people who are
anxious because of the sanctions saying that it’s now time to sit on the
foreign currency (USD, CNY) they have for later use when things get tough.”
