Changchun, China — The North Korean authorities continue to crack down on the private economy following the currency redenomination, as exchange rate instability and rising prices continue. Predictably, this has led to extremely high rates of inflation and forced the authorities to ramp up their reign of terror.
A Daily NK reporter met with two North Korean refugees in China on the 15th who described the social atmosphere, “Although the authorities are executing and arresting rule breakers, foreign currency dealing keeps happening. The stronger the regulation the authorities adopt, the more skillfully people avoid it.”
According to a source from Pyongyang, the authorities recently publicly executed two women from the Pyongcheon district of Pyongyang on suspicion of circulating foreign currency. The source said they were killed as an example to others during the crackdown on foreign currency usage.
On January 5th, in Soeho-ri, part of the Heungnam district of Hamheung, three women were also executed publicly on charges of receiving and circulating Yuan and dollars from fishermen and the crews of other ships returning from international voyages.
A source from South Hamkyung Province explained, “When fishermen land their catch, they sell it directly to Chinese fishermen for Yuan. This is because if they submit the catch to the North Korean Fisheries Department, they won’t see any benefit.”
The executed women were foreign currency dealers. They exchanged the Yuan and dollars which the fishermen got from the Chinese for won.
“Following this incident, inspections of all fishing boats belonging to the Seoho Fisheries Department were initiated and their captains placed under investigation,” the source claimed.
Despite official regulation, demand for foreign currencies is increasing everywhere, according to sources, and the country is suffering from serious inflation.
One from Yangkang Province said on the 14th, “The foreign exchange rate is skyrocketing. A few days ago, one Yuan was around 20 won, but now it is over 30 won and rice is more than 200 won per kilo now.”
In the case of Yangkang Province, on the 9th, one Yuan was worth 20 won and price of one kilogram of rice was 100 won, but by the 15th one Yuan had become more than 30 won and one kilogram of rice more than 200 won.
