A photo of the entrance to the Russian embassy in Pyongyang taken in November 2011. (Lazyhawk, Wikimedia Commons)

North Korea has replaced ten mid-level officials at two construction companies operating in Nakhodka, a city in Primorsky Krai in the Russian Far East. The personnel reshuffle, which came on direct orders from the Central Committee, was designed to tighten government control over the companies and underline the need to meet higher earning goals for the rest of the year.

A source in Russia told Daily NK recently that ten workplace leaders at two North Korean construction companies based in Nakhodka were recalled earlier in October, with other managers sent to replace them.

“Sources at the North Korean construction companies explained that the managers sent home were on a list sent by the Central Committee back in Pyongyang,” the source said.

“The presidents and party secretaries at the North Korean construction companies received the replacement list from the Central Committee and personally oversaw the replacement of the workplace leaders and the handover of their responsibilities to new managers in mid-October. The personnel changes were based on decisions made by the Central Committee,” another source in Russia said.

Central control replaces local discretion

“The presidents and party secretaries of North Korean construction companies in Nakhodka used to suggest replacing workplace leaders to their superiors as circumstances demanded. But this time, the entire list was decided on and sent by their superiors. Pyongyang appears determined to directly manage personnel at these construction companies instead of leaving those decisions to the judgment of people on the ground,” the source added.

The organization of North Korea’s overseas construction companies usually consists of workplaces, work crews, and work teams. Workplace leaders are mid-level officials responsible for managing dozens of workers and reporting results.

“According to officials at North Korean construction companies, the Central Committee is shuffling around personnel in an attempt to maximize performance while elevating foreign currency earning goals for the rest of 2025 before the Ninth Party Congress, which is scheduled for next year. The state quota for foreign currency earnings at North Korean construction companies in Primorsky Krai was raised this year, and workplace leaders are being replaced at construction companies with lackluster performance,” the source said.

“As part of the workplace leader replacement, the Central Committee apparently informed the presidents of each construction company that the state quota will be increased for the rest of the year and that they will be given detailed instructions in early November. That will spark competition over performance not only between different companies but also between workplaces inside the same company,” another source said.

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The Korean Central News Agency (KCNA) reported on June 20, 2024, that “A treaty on comprehensive strategic partnership between the Democratic People’s Republic of Korea and the Russian Federation has been signed” and “Comrade Kim Jong Un signed the treaty together with Comrade Putin.” / Photo: Rodong Sinmun, News1

North Korean construction companies based in Nakhodka had been regarded as relatively comfortable posts for earning foreign currency. But those companies failed to reach higher targets for the first half of the year, which prompted the Central Committee to hold the companies responsible by directly replacing their mid-level managers, sources said.

These moves have elevated tensions at construction companies in Nakhodka and have spurred various rumors among the workers.

“When workplace leaders are replaced, the crew leaders and team leaders who had worked closely with them might be sacked en masse,” one worker speculated.

“If the state quota is raised again, our take-home pay may be cut,” a concerned worker commented.

Similar movements are afoot at North Korean construction companies in other parts of Russia.

“North Korean construction companies in Vladivostok and Khabarovsk have been notified that there will be a management review and reshuffle,” another source in Russia said.

Sources say that the replaced workplace leaders who have returned to Pyongyang are currently receiving the usual debriefing as they await reassignment.

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