Since mid-July, prosecutors in South Pyongan Province have been inspecting local market management offices. The provincial prosecutors’ office has vowed to expose all corruption and punish offending officials. However, merchants remain skeptical, saying “nothing will change.”
A Daily NK source in South Hamgyong Province, speaking anonymously, revealed that on July 19, the provincial prosecutors’ office formed inspection teams of six to seven people. These teams began investigating market management offices in several areas, including Sinpo and Riwon, Hochon, and Kowon counties.
This investigation stems from an order by the provincial party committee, following North Korean leader Kim Jong Un’s criticism of economic irregularities in South Hamgyong Province during his July 15 visit to Sinpo’s Pungo-dong area.
“South Hamgyong Province has about 50 state-recognized markets,” the source explained. “Management offices collect daily taxes from merchants. These taxes vary based on booth size and location, and also on the merchant’s relationship with office officials.”
While official standards exist for tax collection, market officials often favor certain merchants, offering them larger spaces at lower tax rates. This practice has created a subtle power dynamic between officials and merchants, which prosecutors are now scrutinizing for potential corruption.
Merchants shaken down for bribes to give to inspectors
In response to the investigation, some market officials are soliciting “flattery bribes” from friendly merchants to give to the inspectors. These bribes range from cigarettes to cash, depending on the merchant’s means.
Merchants who have benefited from officials’ favoritism are complying with these requests. They fear that if current officials are replaced, they’ll need to build new relationships and might lose their prime locations amid increased competition.
As news of these selective bribe requests spread, other merchants expressed discontent. “Those not asked for bribes are complaining about the officials’ unfair approach,” the source reported. “They say it would be better if bribes were demanded from everyone equally. The selective nature of these requests is creating tension.”
Despite the ongoing investigation, most merchants doubt its effectiveness. They believe that even if current officials are replaced, similar practices will continue under new management, the source said.
Daily NK works with a network of sources living in North Korea, China, and elsewhere. Their identities remain anonymous for security reasons.
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