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FILE PHOTO: North Korean sellers peddle goods on the fringes of a market in Sunchon, South Pyongan Province, in October 2018. (The Daily NK)

North Korea’s Ryanggang province has launched extensive undercover inspections targeting illegal foreign currency operations and cross-border smuggling networks.

“The provincial party committee has brandished the knife to crack down on illegal foreign currency circulation and smuggling,” a Daily NK source in Ryanggang province reported. “Since these activities are common in Ryanggang, which sits on the China border, the province regularly faces inspections from Pyongyang. So the provincial party committee launched its own internal crackdown.”

Three-month border security operation targets major markets

The provincial party committee designated three months of intensive inspections from May 20 through August, with officers from the provincial police economic inspection division and provincial prosecutors forming a specialized “tracking group.”

The operation targets unofficial money-changing centers, currency exchangers, wholesale distributors of cigarettes, wheat flour, sugar and other bulk goods, plus smugglers importing vehicles through corrupt state agency connections.

“Some smuggling organizations forge documents to appear they have state approval, making them a primary target,” the source explained.

Undercover investigators blend with local population

Unlike traditional raids, investigators now operate in civilian clothes, concealing their identities while gathering intelligence in major markets across downtown Hyesan, Samjiyon, Kimhyongjik and Kimjongsuk counties.

“The group moves among ordinary people, approaching targets like regular citizens and gathering information through networks connected to illegal foreign currency transactions or smuggling,” the source said.

Similar to Korea’s historical royal inspectors, these undercover agents visit barbershops and cold noodle shops—places where locals gather—to learn about money changers, wholesalers and smuggling operations through casual conversation.

“Randomly barging in like before is outdated,” the source noted. “Now they raid actual crime scenes after determining illegal activity through tracking and surveillance.”

Protecting elite networks or genuine enforcement? 

Some observers suspect the provincial party committee’s self-initiated crackdown aims to protect wealthy North Korean elites, known as donju, who have connections to provincial officials.

If Pyongyang-sent inspectors cracked down on illegal currency transactions or smuggling, the donju who fund local officials could face arrest. The provincial government may be conducting fake enforcement to avoid this scenario.

“Provincial police officials say the province adopted the principle of cleaning up its own house,” the source reported. “They must take the lead organizing themselves before Pyongyang intervenes—both to prevent the central government from cutting revenue streams and to protect their political and administrative power.”

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