To cover the financial costs of the recent
\ncelebrations for Kim Il Sung\u2019s birthday (4.15) and the upcoming Party Congress
\nin May, North Korean authorities have demanded trading companies make loyalty
\nfund contributions of 3,000 USD each. To meet these demands, trading companies have
\nbeen buying up large quantities of goods such as fruit and importing it from
\nChina for sale to North Korea\u2019s nouveau riche (the donju). <\/p>\n
In a telephone conversation with Daily NK Additional sources in the same province as well as South Pyongan Province and Pyongyang confirmed this news.<\/span><\/p>\n \u201cThe nominal requirement is 3,000 USD, but The North Korean authorities frequently For this reason, many trading companies \u201cThis year, fruit from domestic farms \u201cWholesalers are waiting to pick up the North Korean trading companies can buy a 25 \u201cRight now the market is so flooded with To cover the financial costs of the recent celebrations for Kim Il Sung\u2019s birthday (4.15) and the upcoming Party Congress in May, North Korean authorities have demanded trading companies make loyalty fund contributions of 3,000 USD each. To meet these demands, trading companies have been buying up large quantities of goods such as fruit and […]<\/p>\n","protected":false},"author":122,"featured_media":32550,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[645],"tags":[],"class_list":["post-32548","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"yoast_head":"\n
\non April 15, a source in North Pyongan Province noted that, \u201cEarlier
\ntoday (on April 15), the authorities issued an order stipulating that trading
\ncompanies are required to contribute loyalty funds of 3,000 USD. Similar
\nloyalty funds are due every year, but this year extra is being demanded because
\nof the Party Congress. As a result of this, trading companies have been
\nworrying about their financial ability to continue operations after submitting
\nthe additional sum.\u201d
\nit\u2019s openly said that it will take at least 5,000 USD for companies to retain
\ntheir trading rights, and at least 10,000 USD to expand those rights,\u201d the
\nsource stated. \u201cFirms that are unable to pay their loyalty funds run the risk
\nof losing their permission to trade, so many are considering the shakedown to
\nbe a threat to their very survival.\u201d
\nseek to induce a form of loyalty competition between trading companies by
\ndemanding that each firm contribute significant amounts of foreign currency
\nprior to major national holidays. Those that pay up higher sums are invariably
\nguaranteed permission to operate.
\nhave increased their import of daily goods and food products, neither of which
\nare subject to the harsh round of unilateral and multilateral sanctions imposed
\non North Korea in early March in response to its fourth nuclear test and rocket
\nlaunch. In particular, fruit such as apples is not included on the list of
\nsanctioned items, so these trading companies can reliably earn foreign currency
\nby buying and selling them.
\nhasn’t hit the North Korean market yet, so it\u2019s considered a smart business
\npractice to import from China and capitalize on the demand,\u201d the source added.
\n\u201cThese days, container trucks packed with over 70 tons of apple boxes have been
\ncoming in from China through the Sinuiju customs office.\u201d <\/span> <\/p>\n
\ncargo as soon as the trucks arrive in Sinuiju. In order to capitalize on this
\ntimely opportunity, Sinuiju donju wait each evening near the customs office and
\nimmediately pay for the goods in foreign currency to dominate the supply chain,\u201d
\nhe explained.
\nkg box of apples for approximately 80-100 RMB (104,000-130,000 KPW\/ 13-16 USD)
\nin China. They can then sell the same boxes on to the donju for approximately
\n120-150 RMB (156,000-195,000 KPW\/ 20-24 USD). Some donju are able to sell their
\nimported fruit for twice the initial cost to market vendors, and occasionally
\nsell it directly to state-run factories that are preparing gifts for their
\nemployees for the upcoming holidays.
\nChinese apples that vendors are even selling one apiece to customers who don\u2019t
\nhave a lot of money,\u201d he said. \u201cIt seems like imported fruits are going
\nto dominate the markets until North Korea\u2019s first fruits of the year become
\navailable around July.\u201d<\/span> <\/p>\n","protected":false},"excerpt":{"rendered":"