＜Inside N. Korea＞DPRK Issues Mass "Money Vouchers" to Combat Soaring Prices - Value Quickly Plummets as Public Trust Erodes

◆ Government Struggles to Counter "Currency Exchange" Rumors

"The government issued the new donpyo to quell rumors of currency exchange. It's essentially a price control measure," explains reporting partner A. The strategy showed some effect, with currency exchange rumors subsiding and price increases gradually stabilizing since early this year.

The highest denomination of newly issued donpyo last year was 50,000 won. While mainly used for business-to-business transactions, they circulated widely in the market. However, as mentioned earlier, citizens distrustful of government monetary policy showed little confidence in the new vouchers. Reporting partner B, living in the northern region, reported in mid-January:

"Due to excessive circulation, donpyo's value has fallen. In markets and private transactions, a 5,000-won voucher is treated as 3,200 won in cash. Some people refuse to accept them altogether."

According to B, the new donpyo lost about 35% of their value in just over a month. These vouchers, mass-issued to combat price increases, might ironically become a new factor of inflation.