The price of grains such as rice and corn is on the rise at North Korean marketplaces as higher exchange rates drive up the price of imported goods. North Korean consumers are being overwhelmed by a “price tsunami” that is inciting considerable discontent.
According to Daily NK’s periodic survey of prices at North Korean marketplaces, a kilogram of rice traded for 23,200 North Korean won at a marketplace in Pyongyang on May 17. That was a shocking 52.6% higher than the price (15,200 won) reported two weeks before, in the Aug. 3 survey.
Market prices of rice have undergone a similar increase in other parts of the country. In the Aug. 17 survey, a kilogram of rice cost 23,300 won and 24,000 won at marketplaces in Sinuiju, North Pyongan province, and Hyesan, Ryanggang province, respectively. Those prices were 52.8% and 56.9% higher than in the previous survey.
This was the first time North Korean rice prices have risen more than 50% in such a short period of time since Daily NK began its market survey.
There were indications that the market price of rice had leveled off around 5,000 won per kilogram in early 2024, in the wake of the pandemic. But since that spring, rice prices have been gradually rising.
Over the past three months, rice prices rose by more than 20%, setting back-to-back records. The average price of rice at North Korean markets right now is a whopping 4.75 times higher than in January 2024, before prices began to rise.
As with rice prices, the price of corn has also reached historic highs. A kilogram of corn traded for 6,500 won at a marketplace in Pyongyang on Aug. 17, a full 44% higher than in the survey on Aug. 3.
The market price of corn today is 2.86 times higher than the beginning of January 2024, when corn sold for around 2,300 won.
Currency depreciation drives price increases more than harvest shortfalls
Currency depreciation, not poor harvests, appears to be the main driver behind soaring grain prices at North Korean marketplaces.
South Korea’s Rural Development Administration estimated North Korea’s 2024 farm output at 4.78 million tons in December — only 40,000 tons (0.8%) less than the previous year. Rice production actually increased by 40,000 tons to 2.15 million tons in 2024. This data shows that weak harvests are not causing the dramatic price surge.
Instead, North Korea’s currency has collapsed against the dollar. The won-to-dollar exchange rate hit 43,000 won on Aug. 17, jumping 43.3% from the previous survey. Similar spikes occurred in Sinuiju and Hyesan markets.
Two factors appear to be driving the currency crisis. First, government wage increases at state agencies and enterprises have triggered inflation and weakened the won. Second, expanding trade has increased demand for foreign currency.
The regime has tried to control inflation by banning private foreign currency trading and imposing strict price controls at markets, but with limited success.
Moneychangers and donju (entrepreneurs) who control North Korea’s money markets believe the exchange rate must rise further to match wage increases.
“When wages rise, the dollar price needs to rise accordingly. Moneychangers agree that a dollar ought to cost at least 60,000 won,” one Pyongyang moneychanger said.
Rising exchange rates have pushed imported goods to record highs. Gasoline reached 40,000 won per kilogram and diesel hit 39,000 won on Aug. 17. Cooking oil prices surged 79.7% in just two weeks, from 25,100 won to 45,100 won per kilogram. Sugar and wheat prices rose 36.4% and 25% respectively over the same period.
The price explosion has shocked ordinary North Korean people.
“People are astonished by how rapidly everything costs more. Many don’t know where to buy food since nothing at the marketplace is affordable,” a Ryanggang province source said.
“This is worse than the 2009 currency reform. Markets can’t function when rice jumps 5,000 won overnight,” a South Hamgyong province source complained.
The crisis has sparked rare public criticism of the government. “Wages may have increased — though people don’t always receive their full pay — but prices keep rising faster. The government deserves blame for raising wages so carelessly,” a South Hamgyong province source said.
