State-led car smuggling has exploded in Hyesan, a border city in Ryanggang province. Wealthy individuals are rushing to invest in trading companies involved in the smuggling operations to maximize profits.<\/p>\n
“Chinese-made passenger cars are now flowing into Hyesan through state-sanctioned smuggling networks,” a Daily NK source in Ryanggang province revealed recently. “People with money are pouring funds into trading companies to boost their earnings.”<\/p>\n
According to the source, about 90% of the smuggled vehicles are used cars from China, with new vehicles making up only a small fraction of imports. New cars, being more expensive, sell more slowly, which explains why used vehicles dominate the market.<\/p>\n
More private investors are jumping into car smuggling because vehicle prices are expected to rise when the Yalu River thaws, making smuggling operations more challenging.<\/p>\n