North Korea Regulates Operation of “Service Cars”

[imText1]In a phone conversation with the DailyNK, a North Korean source said that the regulation of Service Cars is become worse everyday. The source noted that cars used for carrying freight are somewhat exempt, but privately owned buses are strictly regulated.

According to the source, in the past, whenever people acquired a vehicle, they had to register the vehicle under the name of the enterprise they worked for. Thirty percent of the profits earned were paid to the enterprises and 70% went to the individual. After three years, a rule requiring the individual to donate the bus to the sponsoring enterprise for free came into effect, but hardly anyone abided by this.

“A majority of the people who operated these buses sold them after two and a half years,” said the source. “Subsequently, the enterprises have changed the rule so that 70% of one month’s profit has to be donated to the enterprises. Owners and customers have offered stubborn resistance.”

It costs around 6,000 to 10,000 dollars to acquire a service car in North Korea. It is almost impossible to earn a profit operating a bus line by paying such a high sum and then offering 70% of earnings to the enterprise.

“A portion of the operators has forged vehicle licenses or technology inspection certificates. These have rendered the state’s measures ineffective, but a significant portion of private buses have stopped operations,” the source explained.

Until now, in an attempt to regenerate after the famine years, North Korean authorities allowed organizations and enterprises to receive investments from individuals and gain a portion of the profits by lending out the enterprise’s name. As a result, people could trade or engage in sales. Individuals operate restaurants, buses and fishing boats using such practice. This way of doing business has become a nationwide reality.

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