Daily NK has received photos taken in late November of the city of Rason from a source in North Hamgyong Province. Although there were once lofty expectations for Rason as one of North Korea’s designated special economic zones, the city has become stagnant due to the effects of international sanctions against North Korea for its nuclear weapons program.
“The economic situation here has been going downhill because of the sanctions. Factories have stopped operating due to restrictions on exporting seafood products, clothes, and processed goods,” the source told Daily NK on December 6.
“Chinese businessmen are busy trying to minimize their losses and pulling their money out of the area. They’re not conducting business and just solely focused on trying to recoup their investments.”
The only exception is a renewed interest in real estate by Chinese investors following an improvement in relations between North and South Korea. Apartment prices in the area have risen to 2300-2500 yuan/m², double what they were at the beginning of the year (1000 yuan/m²).
However, many local North Koreans are reluctant to move into multi-purpose buildings with residential and commercial units in the area, fearing that they will be confiscated by the government. Originally built for foreigners to rent, most of the space remains vacant.
Although sanctions have been taking their toll, the new Rajin Market has remained active. Built only three years ago, the market accommodates over 6,000 vendors and sells everything from consumables to various manufactured goods.
However, many vendors are only earning an average 10,000 KPW per day. Considering the fact that many of these vendors have to support a family of four or more, earning roughly the equivalent of 2 kg of rice is not nearly enough. Declining purchasing power has also resulted in residents spending less money in the market.
“While there are lots of customers at the market, most are just window shopping. People are still eating, but other goods are not selling as well,” a separate source in Rason said.
“When there were no export restrictions and money was plentiful, people would buy all sorts of things at the market. But more and more people are starting to view shopping as a luxury and are being forced to focus on feeding their families.”
*Translated by Brian Boyle
