DPRK announces “bond”…er…lottery winners

Quoting from Yonhap:

The latest drawings for pay outs of North Korea’s government bonds have taken place in Pyongyang, the country’s state-run television broadcaster said Friday.

The (North) Korean Central TV, monitored in Seoul, reported that the latest winners of the “People’s Life Bonds” were announced this week.

From July-November 2003, the North Korean government sold 10-year bonds worth 500 (US$3.50), 1000, and 5000 North Korean won, saying it would repay lottery winners by multiplying the original payment rather than paying interest.

It was the first bond that North Korea has issued.

According to reports then, the cash-short communist regime aggressively marketed the bonds, praising buyers as “patriots” helping to funnel private money into the buildup of the national economy.

First-place winners get 50 times the face value of the bond, with second-place winners receiving 25 times, third with 10 times, fourth with five times, six with triple and seventh with double.

Drawings were reported to be held once or twice a year.

The sixth round of drawings took place in January 2008, with thirteen 5000-won bond holders declared winners, as well as eight 1000-won bond holders and 10 holders of 500-won bonds.

For this week’s event, seven winners were drawn for each denomination, the TV report said.

Here is a link to an IFES article on the last round (round six) of bond payments, which were announced in January 2008.  Round five took place in January 2006.

Read the full article here:
N. Korea holds latest lottery for gov’t bond repayment


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