The Daesong Department Store in Pyongyang. (KCNA)

North Korea instructed grocery store managers across the country in early February to strictly follow government guidelines for the purchase, sale, and storage of goods, with the Sinchon county people’s committee among those delivering the orders via provincial, municipal, and county people’s committees.

The regulations appear aimed at reinforcing discipline in the state-run distribution sector in line with the regime’s 20×10 regional development policy. A source in South Hwanghae province, who requested anonymity for security reasons, confirmed the directive to Daily NK recently.

Under the new rules, stores are required to calculate how much of each product is sourced locally versus elsewhere when making purchases. The regulations also specify the conditions under which stores may replace an unprofitable product, removing discretion from individual managers.

Sales procedures have been tightened as well. Stores must now standardize price tags and document the reasons for any price changes. Arbitrary discounting and product bundling are banned, though clearance sales are permitted up to a defined threshold.

Storage rules and accountability measures

On the storage side, the regulations introduce a first-ever cap on the percentage of goods that may be disposed of. Store managers will be held fully accountable for any deliberate omissions or falsified disposal records. Responsibility for problems arising during transportation is also clearly assigned, though managers who can objectively demonstrate that an issue stemmed from unavoidable causes are exempt.

The Sinchon county people’s committee urged store managers to “get their act together,” ordered immediate implementation of the new procedures, and announced that quarterly inspections would begin in the spring quarter.

The tighter rules are already causing concern among managers.

“In the past, store managers have met government quotas with goods from the gray market, but it doesn’t look like that will fly anymore,” the source said. “Managers aren’t sure whether it will be possible to meet government quotas if they follow state-mandated procedures and use goods provided by the state.”

Read in Korean

A Note to Readers

Reporting from inside North Korea

Daily NK operates networks of sources inside North Korea who document events in real-time and transmit information through secure channels. Unlike reporting based on state media, satellite imagery, or defector accounts from years past, our journalism comes directly from people currently living under the regime. We verify reports through multiple independent sources and cross-reference details before publication.

Our sources remain anonymous because contact with foreign media is treated as a capital offense in North Korea — discovery means imprisonment or execution. This network-based approach allows Daily NK to report on developments other outlets cannot access: market trends, policy implementation, public sentiment, and daily realities that never appear in official narratives.

Maintaining these secure communication channels and protecting source identities requires specialized protocols and constant vigilance. Daily NK serves as a bridge between North Koreans and the outside world, documenting what’s happening inside one of the world’s most closed societies.