North Korean traders are reporting increasing losses of goods during state inspections of unofficial trade, Daily NK has learned.<\/p>\n
“Traders in Hyesan who import from China are under severe stress lately. The number of items they receive doesn’t match what Chinese traders sent,” a source in Ryanggang province told Daily NK on Dec. 27.<\/p>\n
For unofficial trade, imports undergo inspection by a joint task force of state security agents, police, prosecutors and customs officials. Products frequently go missing during these inspections.<\/p>\n
Since January 2020, when North Korea sealed its borders against COVID-19, private smuggling has been strictly prohibited. Official customs mainly process non-sanctioned items like food and daily necessities.<\/p>\n
Sanctioned and high-value items enter through an off-the-books customs system known as state-sponsored smuggling, despite having official state approval. These operations typically occur late at night rather than during daylight hours, with the regime itself maintaining tight security to keep such trade hidden.<\/p>\n
Previously, these state-sponsored shipments, arranged by powerful government bodies and major trading companies, faced only cursory inspections. Recently, however, North Korea has deployed joint inspection teams amid fears that shipments might contain South Korean products or memory devices with foreign content, including South Korean entertainment.<\/p>\n
Instead of the former practice of spot-checking, inspectors now examine all imported items. Traders receive their goods only after clearance, but many report significant discrepancies between shipped and received quantities.<\/p>\n
“Initially, traders blamed Chinese partners for short shipments,” the source explained. “But repeated shortfalls pointed to theft during inspections.”<\/p>\n
In mid-December, a trader identified as “A” lost a padded coat worth 1,500 yuan (approximately 298,000 South Korean won) from his state-approved shipment. After speaking with fellow traders who reported similar losses, he concluded that inspection officials were stealing items.<\/p>\n
Another trader, “B,” lost goods worth 2,500 yuan (about 497,000 South Korean won) when five Chinese products, each valued at 500 yuan, vanished during inspection.<\/p>\n
“This happens frequently in state-sponsored smuggling now. Traders keep losing money but can’t voice their complaints,” the source said. Many fear that speaking up could subject them to even stricter inspections.<\/p>\n
“The inspection team members, though from different organizations, were initially cautious around each other,” the source noted. “Now they seem to be working together – otherwise such blatant theft wouldn’t be possible.”<\/p>\n