Although overall market prices appear to be
holding steady in North Korea, the going rate for goods associated with the
Kaesong Industrial Complex are said to be skyrocketing following the shutdown
of the plant. Due to recent crackdowns by the authorities on anyone caught
selling such goods in the markets, the new prices are thought to be reflecting
the associated risks.
Bolder sellers, however, are continuing to
offer the contraband goods by hiding them underneath other wares on display, a
source in Ryanggang Province reported to Daily NK on March 28.
Choco Pies, which have always been popular
amongst younger North Koreans, were quite recently selling for just 1230-1270
KPW. Owing to the harsh crackdown on Kaesong products, their prices have now
doubled, and they are now selling for as much as 2600 KPW each.
Although Choco Pies were never produced at
Kaesong, their market availability has been closely associated with the status
of complex. In June 2014, the North Korean authorities demanded that South
Korean managers at Kaesong stop providing Choco Pies to their employees. As
such, they have not been distributed via the complex since.
However, a number of astute traders
recognized that the demand for South Korean-made Choco Pies remained high, and
began to import them through their trade connections in China following the
ban. Due to these efforts, Choco Pies have been continuously available on the
market. In regions outside Pyongyang and Kaesong, many still assume that these
smuggled snacks are coming from the complex.
“Government personnel who are charged with
enforcing the ban on Choco Pies are justifying it [to disgruntled residents] by saying that because South
Korea initiated the shutdown of the complex, it is only natural to crack down
on these products,” the source explained. The authorities are also cracking
down on other South Korean products in addition to Choco Pies.
In addition, the demand for sports shoes
and other footwear rises as spring nears, and the average North Korean man
normally finds domestic or Chinese-made products acceptable. However, when it
comes to socks, consumers are pickier, eschewing domestic and Chinese products
in favor of the superior quality of South Korean goods. Recently, the price of
a pair of socks from South Korea has also been soaring to as high as 8000 KPW
per pair.
Another source in North Hamgyong Province
weighed in, relaying prevailing sentiments on the ground. “Most people,” the
source said, “see the crackdown on everyday products as perverse because
domestic production is inadequate to satisfy demand. The sale and distribution
of such products affords the people of North Korea a more comfortable life.”
In comparison to Chinese products, the
quality and aesthetics of South Korean products are seen as superior, and so
many are unhappy with the crackdowns limiting the supply of these products and
pushing up their prices.
“It is said that the authorities believe
that citizens who prefer South Korean-made goods cannot be true
revolutionaries, which is why they are cracking down. They believe that a
preference for South Korean-made goods will naturally lead to positive opinions
of South Korea as well,” the source said.
