electronic, payments, north korea
North Korean prepaid cards (Sogwang)

North Korea’s State Planning Commission and Central Bank have ordered organizations across South Pyongan province to switch to electronic card payments for workers’ wages starting this month, Daily NK has learned.

A source in the province told Daily NK on Monday that instructions issued on Jan. 10 directed the South Pyongan provincial people’s committee and banks to implement electronic card-based wage payments while ensuring individuals can convert cards to cash at banks when needed for marketplace purchases.

The directive requires local government bodies and banks to coordinate with organizations’ finance departments to facilitate smooth fund transfers from state-run banks. Finance departments were also instructed to work with administrative bodies and banks to manage cash flow effectively and meet public demand for physical currency.

According to the source, the provincial people’s committee and banks have already begun distributing wages via electronic cards to clerical staff and workers across organizations. Finance departments are conducting educational sessions to teach employees how to use the new payment system.

“These measures align with the party’s goal of ensuring cash circulates through state-run banks rather than solely among citizens—a message that’s being reinforced through public propaganda,” the source explained.

However, the transition has met with mixed reactions. Many North Koreans question the practicality of card-based wages, citing the need for cash at marketplaces and the inconvenience of waiting in bank lines for conversions.

“People understand the government wants to control money circulation, but there’s no guarantee converted cash will return to the banks,” the source said. “Many are frustrated about this added inconvenience when cash payments were simpler.”

The source added that given how official wages cover only a fraction of living expenses, with much larger sums changing hands informally, questions remain about the policy’s effectiveness in channeling money through state-run banks.

Nevertheless, some workers have welcomed the change. “With wages having increased significantly, handling cash was becoming cumbersome. Card payments should be more convenient,” one resident remarked.

Read in Korean