[imText1]Recently in North Korea, the number of street stalls (tents on the streets to sell foods and daily goods) have visibly increased.
The street stalls are good indications of the economic situation in North Korea by eyesight. When the economy is better the number of the stalls decrease, when the economy is bad, they increase. In other words, the economy in the last years seriously worsened.
Park Soon Ja, who recently defected from North Korea said, “the current food situation is the most difficult one. Everyone clamors that if they do not go though this year’s “ridge of barley” (severe food shortage), they will starve to death. Those who still work at the government workpalces were given food for five days in January, and the officials told them they must obtain their own food.”
“In reports and workplaces (they) urge everyday that we should become victorious phoenix (or an immortal bird) as we have strived through “the march of tribulation,” but every household is having a hard time as the ridge of barley started. There are a lot of people who leave their houses empty in search for edible plants not yet sprouted on the fields or oysters.”
For this reason Park set up a street stall once but all her goods were confiscated by the National Security Department and when she could not find any other way to obtain food, so she defected to China.
Double Hardships by Daily Tax of 30% and Confiscation by the Security Department Officers
We can have a glimpse of the current North Korean economic situation through the background and reasons for Park’s setting up a stall and defection.
The street stalls emerged in mid 1990s. As the planned economy ceased to function and the people dying of starvation increased, the result was a chaos in social order. The street stalls first emerged in the border cities and since they became successful profit-making individual businesses, the market spontaneously generated itself and expanded. Meanwhile, the state owned stores, there were no goods to sell and empty shelves were covered with dirt.
People would look for the things they need in the marketplaces. However, because the opening hours were controlled by the state, it was inconvenient for the people. For this reason, the stalls like the 24/7 stores in South Korea increased. Those who started the stall business made 1000won as daily profit while those who still worked for the state companied earned 100won a month. Then everyone set up their own stalls.
In order to set up a stall you need permission from the Inner City Business Management Department of the Municipal People’s Committee. First you have to submit application in the department office, and pay tax. Tax is 30% of daily profit.
However, it is not easy to obtain such permission. The permission is granted by the Director of the Business Department of the Municipal People’s Committee, which he does not grant easily. Park waited for permission for two months, but when she did not hear anything from the department, she bribed with Chinese cigarettes and two bottles of Chinese hard liquor (Kaoliang Liquor). Through this process, she was able to set up a stall on a lot of a 6.6 square meters (it cannot exceed 6.6 square meters).
Park borrowed money with 5% interest rate to buy goods from a Chinese descendant in North Korea to start her business. She worked at her stall an entire day and earned 10,000won. When the day was dark, the market patrol came out and collected 30% of their profit as tax. If one does not pay tax, the patrols destroy his stall the next day.
The best sold goods are Chinese goods, but liquor, cigarettes, and capitalism goods (such as video tapes) are prohibited to be sold by the state.
The Evil Cycle of the Chain of Prey
The biggest problem for running a business is the security department officials and the patrols. Since they have a hard time living on their wage, they use the power called “right to control” in order to live off of the stall sellers. This is a chain of prey.
The stall sellers have little left after they pay daily tax, interests, and give what the security officials demand. However, since there is no other way to survive, they try to hold on to the stalls.
Park was able to manage her business for a month. One day a person whom she acquainted with in China visited her and asked her if she would buy some goods from him. Most of the goods were liquor, cigarettes and clothes from China. Although they are prohibited goods, they make much profits. She paid him and was able to receive the goods.
Then a crowed of people were chased so she looked out and someone told her that officials from the Security Department came for surveillance. The officials came to her stall even before she hid the prohibited goods.
An official from the Economic Surveillance Department of the District Security Department was commanding the patrols. As soon as he said, “Take away all these,” two of the patrols opened the sack they prepared and confiscated all Park’s goods.
Although Park pleaded saying, “If you take all these I will be loaded with loans,” but they moved to another stall and said, “Come to the Security Department tomorrow.”
Security Officials Protect Chinese Descendents with Payment
The next day Park visited the department, but the inspection director at the Security Department told her, “The goods confiscated yesterday were sent to the mine workers with the command of the Party as goods supply, so don’t even think about getting them back.” The director is clearly lying. The officials confiscate the goods and they either possess them or sell them secretly to others.
The security officials and patrols protect Chinese descendents with payment, while they rip off and confiscate goods of the (North) Koreans who are striving to make a living.
North Korean people need to sell prohibited goods to survive in their stalls and those who have little power take full advantage of the power to live off on the people. This evil cycle is pervasive throughout the country in present North Korea.
Park’s last means to make a living was her stall. Since she borrowed money and bought goods she cannot pay the money back. She did not know how else to survive. She could no longer make a living in North Korea so she secretly crossed Tuman River with her children.
