In today’s edition of Market Trends, we explore recent
developments in regards to North Korea’s beer industry. For details, we turn to
economic reporter Kang Mi Jin.
Thanks for having me in. I felt a cool breeze as I was
walking to work today, and thought about the weather in North Korea. This
summer was very hot, so I hope the autumn weather comes as something of a
relief for our listeners in the North. For today’s story, we’re going to talk a
little bit about Ryongsong Beer, a popular choice for consumers in North
Korea’s markets.
I wonder about the price of beer in North Korea. Can the
average person afford it?
The truth is that North Koreans don’t have a lot of
opportunities to buy a beer or two after a hard day’s work because of the
price. However, following a beer festival, the price of Ryongsong Beer was cut
in half from KPW 3,000 to KPW 1,500 for a 500 ml bottle. The source who
informed Daily NK about this development also reported that workers sometimes
pool their money together during gatherings to buy some beer.
Due to these newly affordable prices, demand has been
soaring lately. Sources indicate that people are starting to drink beer on
their birthdays and more people are beginning to choose beer over other forms
of alcohol. This emerging popularity is also having a positive effect on
raising the demand for snacks that go well with beer, such as thin biscuits.
These snacks are sold in different sized packages, ranging from KPW 1,000 –
5,000.
I’m about curious what drove the price of Ryongsong Beer so
low. Was there any special reason?
Some seasonal food products, such as potatoes, naturally
rise and drop with the changing seasons. But we wouldn’t normally consider beer
to be a seasonal product. According to our sources in Pyongyang, beer prices
fell dramatically after a beer festival was held in Pyongyang. Ryongsong Beer’s
price was cut in half and Taedong River Beer was reduced from KPW 6,000 to
5,000. The rumor is that production was increased in anticipation of the
festival but not all of it was consumed, and so the excess is being sold off at
a discount.
This is a good development for the ordinary folks in North
Korea who normally don’t have a chance to buy beer. But I’m curious about how
the beer is being refrigerated and stored, considering the fact that
electricity outages are so common in North Korea.
In most countries, electricity outages cause widespread
inconvenience and complaints. But reliable electricity is a distant memory for
North Koreans. North Korean merchants that deal with food products need to
generate their own. Some operate portable power generators, while others even
use solar panel systems. Merchants that deal in refrigerated products are
turning more and more to solar panels.
Can you tell us a little more about the Pyongyang Beer
Festival? How do most residents feel about that?
The image that first springs to mind when the word “festival” is mentioned is an enjoyable event filled with music, food, beer,
and entertainment. But that’s not quite the experience for most people in North
Korea. Producing beer requires grains. Most North Koreans work quite hard to
satisfy their most basic of food requirements. So most of the beer festival
participants would probably have rather received food. Particularly while the
country is under sanctions, conducting this kind of wasteful policy reflects
poorly on Kim Jong Un’s leadership. Indeed, it seems that the festival was intended
to shore up Kim Jong Un’s power base by appeasing the Pyongyang elite.
