Remittance brokers along the Chinese-North Korean border in North Hamgyong Province have recently been forced to pay larger payments to Ministry of State Security (MSS) officials than before, Daily NK has learned.
“This month, security officials in Hoeryong are demanding much more money from remittance brokers than they did in the past, so the brokers are all complaining about it,” a reporting partner in North Hamgyong Province told Daily NK on Tuesday, speaking on condition of anonymity due to security concerns.
Security agents in North Korea’s border region have long accepted bribes from remittance brokers in return for watching their backs. MSS officials openly demand money from remittance brokers because if the officials cannot pay the money demanded by their superiors, they cannot keep their jobs or get promoted.
However, remittances sent by defectors living in South Korea to their families in the North have reportedly fallen by two thirds this year. Likewise, the income of brokers — who charge commissions on remittances — has plummeted. With security agents demanding more money from brokers than they are earning, this has led to discontent among the brokers, the reporting partner said.
“They say that nowadays, the number of remittances has fallen to close to half of last year’s, perhaps because even the defectors are having a tough time making money these days. The brokers can satisfy MSS demands only if they deal with a large number of remittances. [Many] brokers are only making RMB 100 [around USD 14] while agents demanding RMB 150 [around USD 21], so they are frustrated and think of quitting several times a day.
“The remittance brokers work with one foot already in jail. If they refuse to honor MSS demands due to hardship, that will lead them straight to jail. Brokers are being fleeced left and right, and the reality these days is that it is hard to put together just two meals a day, even if one conducts business in markets all day.”
Demands for more money come from higher up in the ranks
The reporting partner said security agents are demanding more money from remittance brokers because they themselves are facing demands for more money from their superiors.
“Senior MSS officials have recently started to demand that the security agents under them provide money for their children’s school excursions. Not only do you have to prepare boxed lunches and snacks like fruit, but you have to give money and other gifts to the teachers, so the senior officials need a lot of money to cover all of this.”
Security officials are also putting the squeeze on remittance brokers because they have been struggling to survive amidst the COVID-19 pandemic, the reporting partner said.
“Since COVID-19, security agents have received no rations from the government to feed their families, just rations for themselves. The family members of security agents cannot engage in commerce, so the agents have no choice but to engage in corruption, including demanding bribes.
“In the end, corruption is already so rife in the society that if security officials cannot put food on the table, they’ll pick on people using a variety of pretexts.”
Translated by David Black. Edited by Robert Lauler.
Daily NK works with a network of reporting partners who live inside North Korea and China. Their identities remain anonymous due to security concerns. More information about Daily NK’s reporting partner network and information gathering activities can be found on our FAQ page here.
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