{"id":54712,"date":"2023-04-21T09:33:47","date_gmt":"2023-04-21T00:33:47","guid":{"rendered":"https:\/\/www.dailynk.com\/english\/?p=54712"},"modified":"2023-04-21T09:38:19","modified_gmt":"2023-04-21T00:38:19","slug":"north-korea-intensifies-crackdowns-money-changers","status":"publish","type":"post","link":"https:\/\/www.dailynk.com\/english\/north-korea-intensifies-crackdowns-money-changers\/","title":{"rendered":"North Korea intensifies crackdowns on money changers"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Authorities in North and South Hamgyong provinces have recently been cracking down on money changers, Daily NK has learned.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cAnyone who steps foot in [Hamhung&#8217;s] currency exchange district, whatever the reason, is being hauled off by the police and thrown into jail,\u201d a reporting partner in South Hamgyong Province told Daily NK on Tuesday, speaking on condition of anonymity due to security concerns.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The reporting partner said that Hamhung\u2019s police department has been watching more closely for people involved in illegal currency exchange and remittances since the beginning of April.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Following the outbreak of COVID-19, North Korea has been moving to bring food sales and trade under the strict control of the state. The recent crackdown on money changers is part of the government\u2019s effort to control the currency market, the reporting partner said.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe government is pushing individuals to use state-run banks, but most people still work with money changers. Banks aren\u2019t very trusted, and their fees are more expensive than those charged by money changers,\u201d he said.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In Hamhung, for example, banks charge a 5% fee for transferring money to other provinces, while individual money changers only charge 3%. A transfer of KPW 1 million would cost KPW 50,000 at a bank, but KPW 30,000 at a money changer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWhen people are struggling to buy a kilogram of rice, they have to make their money last. Nobody wants to pay more for the same service, so you\u2019ve got a lot of people doing business with money changers. That\u2019s the kind of behavior the government is cracking down on,\u201d the reporting partner said.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Hamhung police have been randomly searching the homes of big-time money changers and bringing them in for questioning. Even little fry who are linked to the big-timers are getting caught up in the dragnet.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Arresting the major players is designed to terrify other money changers and force them to curtail their operations, the reporting partner said. And because the small-timers make a living by trading foreign currency at the marketplace throughout the day and then selling it to the big-timers for a profit, arresting the big-timers can have a huge impact on the small-timers\u2019 livelihood, he explained.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The authorities\u2019 clampdown on money changers is also taking place along regions on the China-North Korea border.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe police in Hoeryong arrested two notorious money changers at the beginning of April and confiscated all the money that turned up in a search of their homes. Nobody has dared to set foot in the currency exchange marketplace since then, and some money changers have been surreptitiously doing business at home to stay under the radar,\u201d another reporting partner in North Hamgyong Province said, speaking on condition of anonymity.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe families of defectors in the interior of the country want to have private money changers handle remittances from China or South Korea; they wouldn\u2019t dream of working with banks. Bank transactions leave a paper trail that could have them tailed and surveilled. On top of that, banks charge higher fees than individuals.\u201d<\/span><\/p>\n<p><b><i>Translated by David Carruth. Edited by Robert Lauler.\u00a0<\/i><\/b><\/p>\n<p><em>Daily NK works with a network of reporting partners who live inside North Korea and China. Their identities remain anonymous due to security concerns. More information about Daily NK\u2019s reporting partner network and information gathering activities can be found on our FAQ page\u00a0<a href=\"https:\/\/www.dailynk.com\/english\/faq\/\">here<\/a>.\u00a0\u00a0<\/em><\/p>\n<p><i>Please direct any comments or questions about this article to dailynkenglish@uni-media.net.<\/i><\/p>\n<p><a href=\"https:\/\/www.dailynk.com\/20230418-1\/\"><i>Read in Korean<\/i><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Authorities in North and South Hamgyong provinces have recently been cracking down on money changers, Daily NK has learned. \u201cAnyone who steps foot in [Hamhung&#8217;s] currency exchange district, whatever the reason, is being hauled off by the police and thrown into jail,\u201d a reporting partner in South Hamgyong Province told Daily NK on Tuesday, speaking [&hellip;]<\/p>\n","protected":false},"author":132,"featured_media":44933,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wikipediapreview_detectlinks":true,"footnotes":""},"categories":[67],"tags":[930,1656,222,735],"class_list":["post-54712","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news","tag-foreign-currency","tag-dprk","tag-border","tag-trade"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v28.1) - 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