Following North Korean state media reports that scientists and educators have begun moving into a “circular-shaped” apartment building in Sinuiju, Daily NK has learned that some of the new residents are members of the country’s wealthy entrepreneurial class – the donjuLiterally "masters of money," donju refers to people who hav... More – and that they used their own money to get a flat in the building.
“Construction of the new high-rise apartment building finished on July 26,” a source in North Pyongan Province told Daily NK during a phone call on Aug. 6. “The state gave scientists and educators apartments in the building, but there are others who moved in as well. About half of the new residents are people who paid to move into their flats.”
Rodong Sinmun reported recently that the new apartment building was constructed to house scientists and educators.
Based on the source’s report, however, half of the new residents of the building are scientists and technicians who were allocated units by the government, while the other half “bought their way in.”
In principle, all housing in North Korea is owned by the state, which issues “occupancy permits” to citizens. Essentially, people are granted “occupancy rights” without gaining ownership of the apartments they live in. Daily NK understands, however, that a significant number of North Koreans are involved in the buying and selling of these permits.
The new “circular” apartment building offers a view of the Yalu River and Dandong, which suggests that the building’s flats could fetch for upwards of USD 20,000. By way of comparison, an 84-square-meter apartment in Sinuiju with its interior still unfinished sold for USD 20,000 in 2018.
“Thirty percent of the people buying units with their own money are donjuLiterally "masters of money," donju refers to people who hav... More who invested beforehand,” the source explained. “The remaining units were allocated to foreign currency-earning agencies that paid for the apartments in American dollars.”
In other words, the apartments were only handed over to members of the donjuLiterally "masters of money," donju refers to people who hav... More and foreign currency-earning agencies after they helped pay for the building’s construction. In similar fashion, North Korean authorities had members of the donjuLiterally "masters of money," donju refers to people who hav... More invest in construction of the apartment buildings on Pyongyang’s Ryomyong Street. 
According to the source, “a foreign currency-earning agency in North Pyongan Province was fully responsible for the construction of the apartment [building in Sinuiju]” and that “there was no help or support from the authorities at all.”
Nonetheless, he told Daily NK that “a lot of the money required for construction was taken from ordinary citizens as taxes, so there has been criticism that [the building] was built from ordinary people’s blood, sweat and tears.”
According to the source, the scientists and educators who moved into the new apartment building in Sinuiju belong to organizations deemed to have played a leading role in carrying out the ruling communist party’s policies.
“The new residents were chosen from researchers at the Sinuiju Cosmetics Research Institute in North Pyongan Province, as well as researchers and technicians who researched and help install factory process [-related technology] in an apparel company that is a joint venture with China,” the source said. “The list of tenants also included teachers from Sinuiju Normal University and those who have trained gifted students at Sinuiju No. 1 Middle School.”
In short, the apartments were given out to people who had made “special achievements,” and the “gifts” appear connected with a broader push by the regime to promote loyalty and solidarity.
“Those who received the free apartments will live there for a while, but it’s likely they’ll sell the units after a few years,” the source pointed out, noting, “They will probably be able to sell after about five years.”
According to the source, it is not possible for people to immediately sell a house they received for free from the communist party and, just as importantly, no one would be interested in buying one. He noted that officials in charge of issuing occupancy permits find it “burdensome” to approve such transactions and that there is a “tacit agreement” among new residents to refrain from selling their properties for “three to five years.”
As teachers and scientists move into the new apartment building, the homes they left behind will be allocated to other people, the source further reported.
“Thirty percent of the now-empty homes will be given to discharged military officers, with 20% transferred to the Urban Management Department. Another 20% will be demolished, and the remaining 30% will be allocated to agencies that lack housing [for their employees],” the source said.
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