North Korean Economy Watch

Benjamin Katzeff Silberstein

Reports Daily NK:

“It has been four months since coal exports to China were blocked, and North Korea is in a war-like crisis. Hundreds of coal mine workers belonging to dozens of trading companies have lost their jobs and been pushed into a life-threatening economic crisis,” a source in South Pyongan Province recently told Daily NK.

“Local residents who were once making a living by running food stalls near the coal mines or carrying coal have all lost their jobs. As a result, regional economic activity has plummeted.?

The local businesses that once relied on the coal export industry, including restaurants, car washes, and fuel vendors, have all met a similar fate and the circulation of money has stagnated in the general markets, causing disarray.

As a flow-on effect, the price of coal purchased for domestic consumption (primarily as a fuel source for home cooking and heating) has also dropped, inflicting further losses on coal exporting companies.

“Coal trading companies that used to allocate 10 percent of their coal export profits toward management have either suspended production or are only producing small quantities of coal. As such, the trading companies, markets, and residents alike have all been driven into a crisis,” a source in North Pyongan Province explained.

Although the local economy is in serious trouble, the North Korean authorities are not taking any tangible steps to address the issue. According to the source, the coal produced at the state-run coal mine in Sunchon City continues to be sent to the Pyongyang thermal power plant, irrespective of the suspension of coal exports.

The sources reported that residents are eagerly hoping that coal exports will resume, but the authorities feel as long as the state-run enterprises remain operational, there are no problems to address. This is causing complaints from the residents who instead see the nation?s resources poured into weapons development.

This entry was posted on Friday, June 16th, 2017 at 9:54 am and is filed under China, International trade. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.