North Korea is experiencing growing use of online banking. Following the adoption of the "Electronic Payment Law" in October 2021, purchases using electronic currency increased from late 2023, and personal online money transfers have been expanding since last year. A reporting partner living in the northern region has shared details about the situation. (ISHIMARU Jiro / KANG Ji-won)
◆Regime Actively Promotes Electronic Currency
While it's called online banking, internet access in North Korea is completely blocked for everyone except special agencies and the ultra-privileged elite. What's being used is an intranet limited to domestic use. Nevertheless, online currency circulation is expanding rapidly.
Article 1 of the "Electronic Payment Law" states that its mission is to "contribute to reducing cash circulation, increasing non-cash circulation, and facilitating smooth currency flow." The aim appears to be promoting increased use of electronic currency—a global trend—while simultaneously monitoring the flow of funds among individuals, businesses, and organizations.
The Kim Jong-un regime began converting the payment of wages for civil servants and enterprise employees from cash to card deposits in late 2023. These are electronic payment-only cards similar to debit cards, which can be used for payments at state-owned stores, state-run grain stores, and markets. Since last year, online banking that enables transfers between institutions and individuals has been spreading.
◆Transfer Fee: 0.7%
The reporting partner from Ryanggang Province explains the usage method as follows:
"Now most households have bank accounts and payment cards. It's convenient because individuals can transfer money without going to the bank, using 'information service centers' or computers. Many people are using it. However, approval from authorities is required when making transfers. The fee is 0.7% per transaction, and you can transfer up to 30 million won at once."
※ Information service centers are a type of "digital shop" that sells, repairs, and configures devices and software such as mobile phones and computers.
※As of mid-March 2025, 30 million North Korean won is approximately 1.94 million South Korean won.
