State-led smuggling operations around Hyesan have been suspended for more than two weeks. North Korean smugglers who made advance payments to Chinese suppliers are now facing financial difficulties.
A Daily NK source in Ryanggang province said recently that state smuggling operations at the Hyesan border were suspended on May 15, deepening concerns among smugglers.
“They made advance payments to Chinese counterparts to import goods,” the source said.
North Korean smugglers typically send goods first when exporting and receive payment after sales are completed. When importing from China, sending payment in advance has become standard practice.
Some smugglers who made large advance payments to import expensive items like vehicles are unable to receive goods or recover funds due to the suspension.
According to the source, one vehicle importer sent 500,000 Chinese yuan (around $69,000) to a Chinese supplier just before state smuggling operations were suspended. The money remains tied up as operations have not resumed.
“When state smuggling was first suspended, Chinese sources said it would reopen ‘around next week,’ so people were reassured. But with no signs of resumption after two weeks, smugglers’ anxiety and impatience are growing,” the source said.
Rumors fly about possible reopening dates
Concerns are spreading among smugglers that the suspension could last longer than expected due to China’s COVID-19 resurgence. The enthusiastic atmosphere around previously active state smuggling has cooled, with smugglers saying their “insides are burning black.”
“There are rumors trade will restart around early June, but since what was supposed to reopen ‘after a week’ has already been more than two weeks, we’ll have to wait and see,” the source said. “Right now, smugglers are just hoping trade will restart.”
The source added that smugglers involved in illegal trade all face extreme pressure when such situations arise. “Those who made advance payments can’t receive goods, while those who need to ship goods can’t make deliveries.”
The suspension is due to Chinese circumstances, giving smugglers some hope.
“Smugglers are holding on day by day, thinking operations will eventually resume as long as North Korea doesn’t completely close the border like during COVID,” the source said.
