＜Inside N. Korea＞What Happened to the Sudden '10-fold Wage Increase'? (1) Expanding Card Payments - "Frequent Power Outages are the Problem"
In late 2023, the North Korean regime dramatically increased wages for state enterprise workers, civil servants, and pensions for retirees by approximately 10 times compared to the beginning of that year. However, there are virtually no voices praising this dramatic wage increase. (By ISHIMARU Jiro / KANG Ji-won)
◆ Complaints About the Massive Wage Increase from the Beginning
The "massive wage increase" of up to 10 times faced complaints from the very start. Why?
According to reporting partners living inside North Korea, there are two common reasons: First, deductions from wages would certainly increase as well. Second, workplace pressure would intensify, making it difficult to engage in economic activities outside official employment. In other words, people anticipated that actual income wouldn't increase much while control would only tighten.
◆ A Wage System That Couldn't Even Buy 1kg of Rice
It's important to understand that pre-increase state wages were already at a level that had almost no practical meaning for daily life.
ASIAPRESS has been conducting weekly price surveys in northern regions for an extended period. In late 2022, one year before the "wage increase," the average monthly wage was 2,000-3,000 won, which could only buy about 1kg of corn noodles or 500g of white rice in the market. Additionally, rations provided to workers covered only their personal portions, typically for just 3-7 days. No rations were provided for family members.
This made survival impossible. People have been earning money outside their official workplaces through private business or individual employment. In urban areas, day laborers could earn around 10,000 won per day.
For 30 years, North Koreans have maintained their livelihoods by combining mandatory workplace labor with side jobs as their main source of income. The Kim Jong-un regime implemented this massive wage increase while strongly controlling and restricting these individual economic activities.
◆ Authorities Halted the Widely Complained-About Deductions
As many people predicted, the increased wages continued to be subject to various deductions: "party dues" for party members and "league fees" for those belonging to social organizations like the Youth League and Workplace League. Mandatory contributions for military and disaster relief also continued.
Perhaps alarmed by residents' disappointment, the authorities began taking action in February this year, according to Reporting Partner “A” in Ryanggang Province. Companies were strongly instructed to eliminate deductions, pay wages in full, and collect various required fees separately from workers.
"Monthly accounting inspections now strictly check whether factories and enterprises make deductions from wages. Wage payment status must also be reported to prosecutors, banks, and administrative agencies."
Even though eliminating deductions and collecting fees individually from workers wouldn't increase the "actual amount received," the authorities appear to be strongly demanding "full payment" as a first step.
◆ Increasingly Strict Workplace Constraints
Since around 2020, when the COVID pandemic began, the Kim Jong-un regime has strictly limited and controlled individual economic activities, partly due to the need for disease prevention.
Operating private restaurants from home was prohibited. Hiring people for small businesses such as food production (bread, rice cakes), clothing manufacturing, or transportation using handcarts became impossible. Markets, which had been spaces for free commerce, saw a dramatic reduction in items permitted for trade.
Adult men must report to their assigned workplaces, making it difficult to engage in business or wage labor outside their workplaces. Those who leave their workplace to pursue other income opportunities are punished as "workplace deserters" or "unemployed."
These strong regulations continued even after the "zero COVID" policy began to ease in 2023. Urban residents saw their cash income decrease, and in provincial cities, vulnerable populations began dying from malnutrition and disease. The Kim Jong-un regime's massive wage increase was implemented amid policies opposing markets and strengthening control over citizens.
◆ Life Has Not Improved Despite the Massive Wage Increase
A little over a year has passed since the massive wage increase. How do North Korean residents actually evaluate it now? Here are comments from two sources living in Ryanggang Province:
"40,000-50,000 won is not a small amount and it's nice to receive it, but the problem is that you can't live on that alone. The wage is far from enough to buy necessary food. No one says life has improved (because of the massive wage increase)." (Reporting Partner “A,” mentioned earlier)
"It was much better when we could do business. Now we have to go to work as the government orders, like we've become slaves." (Reporting Partner “B”)
It's necessary to keep a close eye on the "side effects" of this massive wage increase implemented alongside tightened controls.
※ ASIAPRESS communicates with its reporting partners through Chinese cell phones smuggled into North Korea.
