The North Korean Authorities Control Sales Items And Prices at Markets

Daily NK
Lee Sung Jin
11/16/2007

It is reported that the North Korean authorities have been regulating Jangmadang (markets) by placing age limit on who can do business in the market and controlling sales items and prices.

45-year old Ahn Hyuk Jun said in an interview with DailyNK conducted on Wednesday, “A decree is posted at the entrance to many markets in Pyongyang that the state would control sales prices and the quantity of sales items.” Ahn, a resident of Pyongyang, came to Yanji, China on November 4th to visit his relatives.

Mr. Ahn said, “According to the decree, the state forbids merchants from bringing out more than 15 items for sale and selling more than 10 kg of sea products in the market.”

The decree is another controlling measure of markets adopted by the state. Previously, the state has conducted a campaign to fight anti-socialist trends appearing in many market places. Moreover, it has banned female merchants who are under the age of 39 from doing business in the market. In Pyongyang, the age limit is 49. It seems that North Korea has adopted a rather extreme measure as both the number of people engaged in business and products circulated in the markets continue to increase.

However, few merchants would follow the new measure which limits sales items and prices because they cannot make a profit that way. It is certain that the new decree would likely turn out futile.

Mr. Ahn said, “For example, the decree lowered the price for octopus from 3,700 won/kg to 2,200 won/kg, and the price for flatfish from 3,500/kg to 1,800/kg.”

Ahn said, “No one in the market would abide by the state decree at the risk of losing profit,” adding, “many merchants would bring out items for sale that are low in quality and matches the state-imposed price anyway. However, a real business is done in a clandestine manner.”

According to Ahn’s explanation, the real business is done as follows. Many merchants on their way to the market stop at neighboring households and unload their sales items. Then they pay the households to keep their items there. At the market, they bring out low-quality items on sales stand, and post a sign with a list of real sales items right next the stand.

When there are customers checking the list, merchants approach to them and begin bargaining. Once it is done, they both come out of the market and go the household where the merchant hands over the asked item to their customers.

Ahn said, “Overall, many markets of Pyongyang are stagnant due to the state regulation on market transactions.” He added, “Many Pyongyang citizens argue that the state, instead of distributing food, should allow them to do business in the market so that they can make a living.”

“There is a rumor that Kim Yong Il was appointed as the prime minister because he pledged to close all markets,” Ahn said, “Many people worry that a man who lacks knowledge about how money works is now in charge of the nation’s economy.”

Good Friends, the Seoul-based relief organization dedicated to North Korea also reported yesterday that the North Korean authorities have lately produced a great amount of lecture material which bans business activities across the country.

According to the lecture material, the authorities asserted that market transactions would destroy North Korea’s own socialism from within and facilitate the infiltration of capitalism into the society. They urged that the state should strengthen mass ideological training in order to educate the public about why it is important to place age limit on who can do business in the market.

As mentioned earlier, North Korea has banned females under the age of 39 from doing business in the market. There is a rumor that the state would increase the age limit to 45 at the end of this year.

In North Korea most working age females are forced to work at factory complexes. In Pyongsung of South Pyongan Province, the state sends out a dispatch to local females under the age of 30 in order to have them work at neighboring factory complexes. However, few would actually work at the designated complexes because many complexes already have enough workers. Even if they could get a position at factories, it is reported that those employed barely receive wages and food distribution.

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