{"id":1294,"date":"2005-07-07T13:37:09","date_gmt":"2005-07-07T04:37:09","guid":{"rendered":"http:\/\/en.dailynk.com\/en\/?p=1294"},"modified":"2020-01-17T09:28:47","modified_gmt":"2020-01-17T00:28:47","slug":"dollar-dealer-most-popular-job-in","status":"publish","type":"post","link":"https:\/\/www.dailynk.com\/english\/dollar-dealer-most-popular-job-in\/","title":{"rendered":"\u201cDollar Dealer\u201d Most Popular Job in North Korea"},"content":{"rendered":"

[imText1]High inflation is continuing in North Korea. Price of dollar in the blackmarkets in Pyongyang was \u25b2 950 Won\/1$ in Nov. 2003 \u25b2 1,245 Won in May 2004, \u25b2 2,200Won in Feb 2005 and \u25b2 by the end of May this year it reached 2,630 Won, 430Won increased in the last three months, which made the price of dollar triple of it was only two years ago. <\/p>\n

There were dollar dealers who exchanged dollar in the blackmarkets in the past too. However, where as before they negotiates price within reasonable range, now the dealers have exact currency rates. They exchange the information frequently for the exact rate just as the dollar dealers in capitalist societies.<\/p>\n

Short of Money in Banks, Need to Get it from the Central<\/b><\/font><\/p>\n

We heard of recent economic situation of North Korea from a \u2018private traveler\u2019. In North Korea, you call those who travel not for governmental purposes but for private reasons \u2018Private travelers\u2019. <\/p>\n

Jung Hyun Su(pseudo name), a privates traveler to China whom we met on June 28, explained as the current situation. \u201cOnly 20% of all the factories are in function, but only few out of them have government support.\u201d Jung says we legally crossed the board with a passport to meet his uncle in China.<\/p>\n

Jung, who works at a local industry in Donglim-gun, North Pyongan province as a chief engineer says \u201cMost of the local factories have stopped working after the New Economic System, and \u20188.28 mining instrument factory\u2019, which is the biggest factory in our district(-gun) only few (production) lines the produces are in function.<\/p>\n

Are Large-Scale Factories in Function? <\/b><\/p>\n

Projects come down but they do not have electricity nor supplies for production. A credit became worthless as pieces of toilet paper. Since the independent production policy was enforced, each industry is having a difficult time trying to keep their workers \u2018Not hungry\u2019 so there are more and more cases of search for sash and trade. <\/p>\n

How Do You Provide Food and Money for the Workers?<\/b><\/p>\n

\u201cYou need products to trade for food but there is none. So they are unable to give rice, or wage for three a four months. Accountants of the factory usually bring cash from banks to give wage to workers but because the banks are short on cash, they have to bring it from the Central. Due to high inflation, monthly wage in North Korea won is slightly more than $1.\u201d<\/p>\n

For the reason of high inflation Mr. Jung pointed out, \u201cthere is a rumor that to extract dollar from the individual pockets, the government is printing more and more money. Because the price of North Korean Won dropped so much, now people believe dollar is the only way to live, so more and more people are becoming dollar dealers.\u201d <\/p>\n

Reliable Currency Information, Obtained from China<\/b><\/font><\/p>\n

In case of Pyongyang city, many who seem to have nothing to do wonder around major hotels such as Korea Hotel, Botongang Hotel, and foreign goods stores such as Ryugyeong Store, Gyeonghung Store, Changkwang Store. In Shinuiju, there are deals \u2018ready\u2019 in front of Aprokgang Hotel, and foreign goods stores around square of stations.<\/p>\n

They usually stand as though they have nothing to do, and when they see someone looking like a foreigner or looking for dealers, they approach and ask \u201cAre you trying to by or sell?\u201d Then they negotiate \u2018price\u2019 and when they agree, the dealer takes his customer to his \u2018safe place\u2019. This is because when done openly, he could be caught by the security office.<\/p>\n

The \u2018reasonable rate\u2019 they set are frequently herded with China by cellular phone calls. When the rate changes even 0.1%, the price fluctuates much. Due to the lack of means of communication, many times people lose money. Sometimes you can see people arguing over price with dealers. <\/p>\n

Who Picks up 5000 Won Bills with Serial Numbers <\/b><\/font><\/p>\n

What would be the reason for high inflation in North Korea? We met Liu Jen Ping, a Chinese-Korean living in Pyongyang who was visiting Dandong of business. He owns a foreign good store in Changkwang street, where he contracted to divide profit into 7:3 from his business and also exchanges foreign currencies. <\/p>\n

Liu testified that there is a trade company that buys huge amount of North Korean money every month. <\/p>\n

What kind of company was it? <\/b><\/p>\n

\u201cAbout that I cannot tell. \u2018OO Trade Management Department\u2019 called me on the phone and notified that they are requesting for an interview. Those things happen occasionally so I agreed without hesitation. I was suppose to wait for them at the lobby of Botongang Hotel, so I waited for them with my secretary.\u201d <\/p>\n

What was the negotiation about? <\/b><\/p>\n

\u201cAround 8:50pm a Benz drove in the parking lot which had car number of Pyongyang 50-000. Cars with number that start with 50 belong to a taxi company, and people who need security often rent cars like this to do their business. After we greeted, they told me to send away my secretary and talks among ourselves only. The negotiation was about that exchanging $100,000 worth of North Korean won to US dollars. Of course, they said they offered other conditions including providing security of \u2018adequate environment for investment.\u2019\u201d<\/p>\n

How could you trust them? <\/b><\/p>\n

\u201cFrom the beginner they were half forcing half obligating me, so I could tell that they were not from a trading company. They offered me to give 5% yield more (of the profit he makes from his business), so it was likely that they were high rank people. Later in exchanging money, what they brought was bunches of hundred 5000won bills, and each had a serial number to make counting easier. If they are capable of bring out cash right from the bank of where they print money, they must be high in rank or work where they held that kind of position.\u201d <\/p>\n

Excuse me, but what do you do with all the North Korean money? <\/b><\/p>\n

\u201cI give the money to my brother who live in Shinuiju to buy me sea slugs and gold, and I take them to China to sell them. The money I earn in Chinese Yuan, I changed them into dollars and bring them with me to North Korea.\u201d <\/p>\n

Is not there a limit in amount of money you bring in? <\/b><\/p>\n

\u201cAlthough there is a limit of dollars you take out ($1000) of North Korea, there is no limit in how much you bring in and they do not care about where they came from. Since in my passport, I am a government official of the Foreign Affairs Office of the National Security Department, so not only do I get exemption, they do not even check my belongings.\u201d <\/p>\n

They Print Money saying it is the \u2018Commander\u2019s Command\u2019<\/b><\/font><\/p>\n

The institution Liu made a deal with seems to be not a trading company but a government institution that secures foreign currency. <\/p>\n

\u201cSince long ago North Korean had been in a serious foreign currency crisis. It has been earning foreign currency by selling weapons and drugs and money laundering. However, this kind of highly profit making deals caused a lot of criticism toward North Korea. Due to the nuclear problem, with much international attention, North Korea feels more restricted to do illegal foreign currency earning activities. For this reason, it is focusing on extracting dollars possessed by individuals.\u201d <\/p>\n

According to the testimonies of defectors who were formerly high rank officials, North Korea still has difficulties in financing even the United Front Department, Planning Department, and Propaganda and Agitation Department of the Worker\u2019s Party. Because the government could not afford to finance them, it is said that Kim Jong Il commanded each department to finance themselves. <\/p>\n

For easiest way for this kind of government departments to earn foreign currency is to collect personal belongings they can sell in foreign countries. They also buy in dollars from individuals at a higher price. Whichever way, they end up printing more money. <\/p>\n

The foreign currency earning group in room #35 of the Central Party requires a huge amount of North Korean money to collect antiques, gold and other valuables from the people. However, there is no one to stop them since they do it under the \u2018Commander\u2019s Command.\u2019<\/p>\n

Unlimited money printing and the special departments\u2019 \u2018money business\u2019 is stimulating the already high inflation. <\/p>\n","protected":false},"excerpt":{"rendered":"

[imText1]High inflation is continuing in North Korea. Price of dollar in the blackmarkets in Pyongyang was \u25b2 950 Won\/1$ in Nov. 2003 \u25b2 1,245 Won in May 2004, \u25b2 2,200Won in Feb 2005 and \u25b2 by the end of May this year it reached 2,630 Won, 430Won increased in the last three months, which made […]<\/p>\n","protected":false},"author":122,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wikipediapreview_detectlinks":true,"footnotes":""},"categories":[645],"tags":[],"class_list":["post-1294","post","type-post","status-publish","format-standard","category-economy"],"yoast_head":"\n\u201cDollar Dealer\u201d Most Popular Job in North Korea - North Korea News \u2014 Daily NK | Latest DPRK Updates 2026<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dailynk.com\/english\/dollar-dealer-most-popular-job-in\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"\u201cDollar Dealer\u201d Most Popular Job in North Korea\" \/>\n<meta property=\"og:description\" content=\"[imText1]High inflation is continuing in North Korea. 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