phones, merchant, market, capitalist, markets, yuan
FILE PHOTO: A North Korean businessperson using a cell phone at a local market. (Daily NK)

Struggling market vendors in Hamhung, South Hamgyong province, have begun deliberately avoiding their stalls during fee collection times as poor sales make it difficult to cover operating costs.

“Many vendors at major marketplaces in Hamhung have been hiding from market managers to avoid paying fees,” a source in the province told Daily NK recently. “They leave their stalls when fees are collected, then return after the managers leave to resume business.”

The evasion tactics reflect deteriorating market conditions throughout August. Vendors face the burden of paying mandatory stall fees regardless of whether customers are buying, creating financial strain for many small-scale traders.

“Sales have been particularly poor this month, but vendors still must pay market fees even when nobody’s purchasing anything,” the source explained. “Some vendors trick the managers by pretending they stayed home for the day to avoid the fee.”

Coordinated schemes emerge among desperate vendors

Some vendors have developed more sophisticated avoidance strategies, coordinating with neighboring stall operators to alternate absences and effectively halve their fee obligations. When managers arrive for collection, the present vendor falsely reports that their neighbor didn’t come to work that day. The absent vendor later compensates their partner, allowing both to share the cost of a single fee.

This coordinated approach worked until market managers at Sapo Market discovered the scheme on Aug. 10. Management responded by calling a meeting with senior vendors to address what they characterized as a serious problem threatening market operations.

Market authorities announced a strict new policy: any vendor failing to pay fees for seven or more days in a month would lose their stall permanently. This zero-tolerance approach represents a significant shift from previous practices that occasionally waived fees for elderly vendors struggling to turn a profit.

The policy change stems from management concerns that declining fee collection could trigger an audit by the municipal people’s committee, potentially creating problems for market administrators.

The crackdown has particularly affected older vendors who previously benefited from occasional fee forgiveness during difficult periods. These senior traders have expressed frustration that younger vendors’ careless evasion tactics led to the elimination of previous accommodations.

“Older vendors are often less skilled at selling than younger people,” the source noted. “When business is slow like now, they lose money more often. These elderly vendors are angry they now have to pay fees consistently because younger market traders got caught dodging payments.”

The situation reflects broader economic pressures affecting North Korean markets. As the source observed, “It tells you something about current market conditions when even younger vendors are sneaking around to avoid paying fees.”

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Lee Chae Eun
Lee Chae Eun covers trade and market trends, as well as the North Korean government's surveillance and control of its citizens. She also closely follows the situation of North Korean defectors living in China. Further details about her identity cannot be made public for security reasons. Questions about her articles can be directed to dailynkenglish(at)uni-media.net.