North Korean Economy Watch

Daily NK
Han Young Jin
8/6/2007

Frequently in the last couple years, it’s been said within North Korea and among defectors that “North Korea has changed a lot.”

North Korean citizens say, “North Korea is not in the same situation as it was in 10 years ago. The biggest difference is that nowadays, people will do whatever it takes to make money. Also, they confidently raise their opinions to the authorities.”

It is hard to find merchants being called out as “opportunist factions.” It’s also different than the mid-90s when people would sell whatever they could. The market is specializing in items and broadening as well. The market is taking its form.

North Korean authorities have also expanded micro-level autonomous management systems to factory enterprises as they are unable to give out rations.

Of course there are people who make ends meet but most people are merchants. It is hard to find people who work as “servants” or housemaids or people who starve to death. They unanimously say, “It is enough to suffer once. Even cows don’t fall into pits that they’ve fell into once.” This is to say that there will no longer be horrific incidents such as the Great Famine of the mid-90s.

We listened to five defectors who recently entered South Korea on changes in the situation of North Korean residents.

I’m the one who farmed

“I’m the one who farmed. Why should I hand it over to the government?” Defector Kim Kyung Sik [pseudonym] from Onsung, South Hamkyung Province, who came to South Korea in March, 2007 says, “There was an incident with a riot as laborers collectively protested the increase of land tax in 2006.”

After the measures taken on July 1st, 2002, North Korea had laborers other than farmers farm on designated areas according to household and expanded the policy of submitting a portion of the harvest to the government.

Concerned that this measure would be seen as a revolutionary liberal step, North Korea assigned the land according to company title and gave a square around 992 meters to each laborer in the company.

Kim said, “As people farmed on their own land, laborers would work wholeheartedly and there would not even be a patch of grass on the farming land. Because people would find some way to get fertilizer to spread, the size of the fruits was also different.”

He said, “As it became fall, the Management Committee (collective farm’s Leading Group) and the collective farm who had designated the land gave orders to hold off on the fall [harvest] until the standards of grain exchange came from above. Along with this an incident occurred and tens of laborers protested.”

Choi, a woman from the same region said, “As the laborers of Onsung Mine were told to submit 10% of the yield to the government, laborers strongly opposed saying ‘Who had farmed this?’ ‘Why should we hand it over to the government?’ It happened in 2003.”

Accordingly she said, “After dividing the land to the laborers, there has been a sharp decrease in the number of people starving. It will be hard to reverse such tide of change.”

Increase of “Audio-Video Places”

Recently in large cities of North Korea, places to screen multimedia CDs or videos called “Audio-Video Places” – comparable to video rooms in South Korea – have increased. As it is set in a square 50 meters that is decorated like a small theater and plays movies, citizens of the region have been reacting positively.

Defector Suh Kang Chul [pseudonym] from North Hamkyung Province Chongjin who had defected July 2006 said, “There are three screening rooms around the Chongjin Train Station. It is 50 won to see a film. You must watch 2-3 films at once to be satisfied. This is not a small amount of money.”

Screening rooms of North Korea renovate the interior of a building and with the goal to screen “North Korean or Russian films,” they receive the government’s approval. However, most play Chinese or Hong Kong movies. As long as they don’t play South Korean, American, Japanese or pornographic films, there are no severe punishments. The reason people go to screening rooms is because movies are screened for 24 hours without a power outage.

Suh said, “If there is a power outage, the store owner hurries to change to a car battery to play the film. The films people like are Bruce Lee’s “The Big Boss” (1971) and “Fists of Fury” (1972) or Jet Li’s action films.”

Foreign multimedia have been a strong catalyst to change the thoughts of North Koreans. Even Korean dramas that have been copied on to CDs have secretly spread the “Korean Wave” in North Korea. Bae Yong Joon of “Winter Sonata” is recognized as a famous actor.

Many years ago, the “109 Inspection Team” (Bureau to oversee VCDs and videos) was established to regulate illegal screenings and even on the 3rd, in the name of the People’s security, there was an order that “Public officials, institutions, entities and groups must rid all karaoke rooms, movie rooms, computer rooms that were established without the government’s approval for the purpose of making money.”

However, Kim says, “as the ratings of Korean dramas rise, it becomes a situation that cannot be controlled.” Thus, most of the viewers are tied to the Security Agency or an acquaintance of the People’s Safety Agency that it will not be easy to eradicate this problem.

North Korean authorities have made declarations on the “Exposure of Liberalist Corrupt Culture” but in reality the regulating institutions have stopped at indirect responses.

In a phone conversation with a reporter on the 2nd, an internal North Korean news source also said, “It is planned that the Great North Korean Defamatory Broadcasting that was based around the Kaesung area will now move to the Tumen River area. People have been saying that there have been many cases where people are tricked into believing the broadcasting and betraying the country or watching Korean films to get fantasies and crossing the border, but such acts will be severely punished.