In the midst of a long-term recession, many Mongolian construction firms that employ North Korean laborers have suspended operations. Managers dispatched from North Korea have stepped up and hired their fellow countrymen as workers in a bid to earn foreign currency despite the downturn.
Some of these businesses are outward facing, and some even face South Korean businesses. The North Korean-run firms are not avoiding contact in such cases, and are even seeking them out for contracts, thus revealing the need to acquire foreign currency no matter the situation.
A source in Mongolia with knowledge of the operations spoke with the Daily NK special coverage team on site, noting, “North Korean business managers have been affected by the worsening economic situation here in Mongolia. That’s why they’re meeting with any and all business people – be they Mongolian or South Korean – in order to arrange a contract and deliver laborers. In the process of doing so, they collect an honorarium of 50 dollars a head.”
This new trend indicates that the foreign currency earning managers from North Korea are skating on thin ice. Even though the stated goal is to earn money for the regime, contacting South Koreans is considered a security risk and is strictly forbidden. Doing so can earn one a conviction for espionage, resulting in severe punishment.
According to the source, State Security Department operatives in the region can also earn a significant amount of money by participating in the schemes involving South Koreans, so they are turning a blind eye to the practice. However, they might also become implicated in a future investigation, so they sometimes submit a report to the authorities in order to prevent become tangled in accusations later on.
“Because of this, some North Korean managers come face to face with political pressures and then suddenly vanish,” he said.
Explaining the context that led to this development, he added, “These managers are under intense pressure to submit large amounts of loyalty funds to the authorities back home. That’s what caused them to go to this extent: going so far as to contact South Koreans. They’ve become lodged between a rock and a hard place.”
In search of operations that employ overseas North Korean workers, Daily NK’s special coverage team traveled to downtown Ulaanbaatar. Upon arrival, the team discovered that most of the construction sites had been temporarily shut down.
One worksite that continued operations was at a building called ‘The Plaza.’ Once there, Daily NK inquired about the current state of North Korean workers to the manager affiliated with the site, who said that for the most part, the managers give Mongolian workers the day shift, relegating the North Korean workers to the night shift.
“The laborers tend to be reclusive and tend not to contact foreigners. They don’t even deal directly with me,” he added. “They say that the North Koreans work at night to reduce the security risk of contacting foreigners.”
When asked about how economic trends affect the workers, the manager said, “When the economy was still doing well, buildings were shooting up all over this city. But now that things have taken a turn for the worst, most construction operations are at a standstill. It’s hard for even Mongolian workers to find a job these days. Keeping that in mind, who is going to hire a North Korean laborer?”
In relation to this, a Seoul-based NGO called the Database Center for North Korean Human Rights (NKDB) also visited worksites in Mongolia recently. “We can confirm that many construction sites in Ulaanbaatar have been affected by the recession and are currently not active. In response, some North Korean laborers dispatched to the area are choosing to go home, or are staying around the site, going into debt,” the organization’s related report read. NKDB estimated that approximately 1,500 laborers are currently in Mongolia.
In response to the income streams lost by the ailing construction industry, the North Korean foreign currency strategy has shifted. And this explains the presence of the oriental medicine doctors. Mongolia’s medical system has some prominent insufficiencies, and so North Korean oriental doctors with acupuncture experience have been welcomed in downtown hospitals. Locals explained that some of the doctors have earned a good reputation and have increased their rates to capitalize on the name brand recognition. The authorities are exploiting the doctors by taking a large cut of their income: approximately U.S. $2,000/month.
The special coverage team visited a hospital in Ulaanbaatar called “Ачит эх эмнэлэг .” There, they found six North Korean doctors. A person associated with the hospital said, “The North Korean doctors are known for their skills and highly regarded by their patients.”
The special coverage team was also able to briefly dialogue with two North Korean doctors as they left the hospital. They were not shy, saying, “Are you young people from South Joseon [South Korea]? I’m from Pyongyang. At some point, we’ll have the chance to see one another again.” Through the curtain, the special coverage team was able to peep at the doctors’ respective desks. On top of both were items that looked like tablet PCs and mobile phones.
Restaurants in Mongolia are focusing on attracting and maintaining customers. There are three North Korean restaurants in town. Because of the recession, many other restaurants in town have closed down. Compared to China, however, the impact of the international sanctions has not been as debilitating.
In addition, it is also said that when North Korean restaurants in Mongolia get South Korean customers, they are extremely pleased, giving out free side dishes such as kimchi. The situation is a bit more sensitive in China because it has garnered a lot of international attention, “but in Mongolia, the staff tend to go out and greet customers in a very direct and friendly manner,” according to the source.
The source added, “Of course they are warned that South Koreans are ‘poisonous.’ But the general attitude is, if we can earn money, everyone is welcome.”
*This article has been brought to you with support from the Korea Press Foundation.
