[imText1]Yanji, China — Products embezzled from the Kaesong Industrial Complex are finding their way into North Korean markets.
According to inside sources, products produced at the Kaesong Complex were sold in markets around Kaesong and Pyongyang starting in 2006, but as the market for these products grew, they found their way to remote places such as Yongcheon and Shinuiju, North Pyongan Province.
Mr. Jung, a resident of Nakrang district, Pyongyang said during a visit to his relatives in Yanji, China that “Since late 2006, complete or incomplete products and snacks intended for South Korean managers such as instant coffee, bread, chocolates and others goods have sold very well in major markets in Pyongyang, secretly.”
According to Jung, some of the items sold are spoons, chopsticks, vessels, clothes, underwear and coats. These products are in great demand.
Another source said, “Everyone knows Kaesong Products are circulating in Pyongyang. This is not news.”
He explained that an incomplete spoon costs 1,500 won in Kaesong and 2,000 won in Pyongyang. A set of vessels costs 45,000 won and seasoning is 30,000 to 50,000 won. (* One U.S. dollar is approximately 3,300 North Korean won.)
“Instant noodles, instant coffee and bread are really popular. Instant noodles cost 2,000 won and instant coffee and a small loaf of bread are 350 won each.
People affiliated with enterprises in Kaesong confirmed, through phone interviews with DailyNK, that such incidents take place.
An affiliate of a factory that produces underwear in the Kaesong Complex, explained that “We know what is going on but we cannot stop the workers from bringing out a few items in secret. We cannot search their person. If we did, they could get angry and the problem would become more complicated.”
“Such incidents have decreased greatly since we improved our security system. In the beginning, these incidents were so serious that instant coffee, chocolates and bread were frequently missing,” reported a factory representative.
According to sources, in 2006 these embezzled goods were sold secretly by “Knock-knockers (똑똑이),” who sell goods going door to door. They earn their nicknames by knocking on doors. However, recently these goods have started to sell in the jangmadang.
The source added, “Goods from the Kaesong Complex were spreading to Shinuiju and Yongcheon. The scale of embezzlement of Kaesong products is much bigger than before.”
“There is high probability that North Korean workers in the manufacturing sector embezzle small amount of products in various ways. I’ve heard about such incidents constantly since 2005,” said Kim Gyu Chul, a representative from the Forum for Inter-Korean Relations, during a telephone conversation with DailyNK.
“It is not so difficult to embezzle products once a foreman is on board because the North Korea manager of a factory takes the role of leader of the workers.”
According to Kim, during the floods, entrepreneurs sold over 120 million won worth of goods to help people reconstruct their lives. It is quite possible that many of these goods were embezzled from Kaesong.
Another inside source also agrees with Kim’s opinion: “Those in charge of the factory storages are North Koreans, so embezzlement is a piece of cake. I think every enterprise knows this, but it’s not so easy to protest to the North Korean authorities.”
However, a person associated with the Kaesong Industrial Complex Support Team in the Ministry of Unification refuted this saying he’d never heard of such rumors and that such incidents should not happen.
When Daily NK informed the person that several people affiliated with the factories had confirmed the story, the reply was: “It was because of lack of security and checking systems in each factory.”
