{"id":2898,"date":"2017-01-10T15:10:44","date_gmt":"2017-01-10T06:10:44","guid":{"rendered":"http:\/\/www.01.asiapress.org\/rimjin-gang-2\/2017\/01\/report\/20170106-bank-card-services\/"},"modified":"2021-06-24T14:31:11","modified_gmt":"2021-06-24T05:31:11","slug":"20170106-bank-card-services","status":"publish","type":"post","link":"https:\/\/www.02.asiapress.org\/rimjin-gang\/2017\/01\/news\/20170106-bank-card-services\/","title":{"rendered":"\uff1cInside N. Korea\uff1e Bank Card and ATM Appear in Local Cities. Split Responses; \u201cConvenient\u201d and \u201cStill Can\u2019t Trust the Government.\u201d"},"content":{"rendered":"
<\/a>

\u201cNarae\u201d debit card issued by the Foreign Trade Bank of the Democratic People's Republic of Korea. It is used for foreign exchange settlements. Taken by a Chinese tourist in March 2015<\/p><\/div>\n

 <\/p>\n

2017\/Jan\/6<\/span><\/span><\/em><\/p>\n

Following the issuance of bank cards for companies and individuals in local cities from the early 2016, the Central Bank of the Democratic People's Republic of Korea has started to install ATMs from the last fall.\u00a0 According to ASIAPRESS reporting partners inside North Korea, some residents welcomed the card saying \u201cIt is more convenient,\u201d while others showed a concern that \u201cThe state would monitor private properties\u201d and \u201cWe don\u2019t trust the government.\u201d\u00a0 (Kang Ji-won\/Paek Chang-ryong)<\/p>\n

Our reporting partner in Hoeryong City, North Hamkyung Province reported a change of financial system in the mid-December 2016, saying that \u201cRecently, local banks have installed ATMs.\u00a0 The number of residents using bank cards for money transfer and certain types of payment is on the rise.\u00a0 At present, \u201cNarae\u201d debit card and \u201cJonsoung\u201d cash card are issued by local banks in Chongjin City and Hoeryong City.\u00a0 For the issuance of the card, one has to pay 10,000 Won and write a name, address, a mobile or fixed phone number.\u201d\u00a0 [Note: 1 USD is equal to around 8120 Won ]\n Related article: Rising discontent as control reinforced to prepare the 7th Workers Party Conference in May\u2026 Forced labor to the runaways from their work places and coerced savings to banks\u2026<\/a><\/span><\/strong><\/p>\n[Note: Narae debit card is issued by the Foreign Trade Bank of the Democratic People's Republic of Korea.\u00a0 There are two types of the card.\u00a0 One is used only for foreign currencies while the other is for North Korean Won.\u00a0 Jonsoung cash card is issued by the Central Bank of the Democratic People's Republic of Korea.\u00a0 Aside from them, Golden Delta Bank issues \u201cSonbong\u201d card for payment.]\n

Now, how convenient are the bank cards?\u00a0 The reporting partner explains: \u201cMoney transfer and payment can be made between those who have the same cards.\u00a0 Jonsoung cash card can be used not only in a bank but also at a post office to pay telephone charges.\u00a0 The fee on the money transfer is one percent, 1000 Won for sending 100,000 Won.\u00a0 In the past, only big cities like Chongjin had available ATMs; however, branch offices in local cities have installed ATMs since the last autumn.\u00a0 Hoeryong City has on one ATM as of now, but there will be more of them to meet the demands from the residents.\u201d<\/p>\n

Based on the writer\u2019s experiences in North Korea, the entrance cards for particular organizations\u2013such as the Grand People's Study House and the information center\u2013were changed to the ones with IC \u00a0in the mid-2000s.\u00a0 Since around 2009, IC cards for foreign currency payments have been available in specific retail shops such as Potonggang Department Store in Pyongyang.\u00a0 However, only affluent people and high-ranking officials could use it.\u00a0\u00a0 Nowadays, the new payment system\u2013once limited to foreign currencies\u2013has included North Korea Won and gained popularity among residents in local cities.<\/p>\n

In the mid-November 2016, another reporting partner, B, in a different part of North Hamkyung Province reported on the wide use of bank card that \u201cIn the past, I needed to transfer money via a post office.\u00a0 It took time and they charge 10% of the principal as a fee, so I used to use a black market transfer.\u00a0 The number of people using a bank card is increasing since the commission is only 1%, and they can transfer and pay money on the spot if they go to a bank.\u201d
\n Related article:\u00a0\uff1cInside N. Korea\uff1e Expansion of the market economy as the driving force behind social transformation\u2013based on sources from inside North Korea.<\/a><\/span><\/strong><\/p>\n

As a bank card has become a major transaction method, a banker is becoming an increasingly popular occupation.\u00a0 The reporting partner, B, described the current situation in the North Korean society that \u201cAs banks earn commission, they distribute 20 days\u2019 worth of rice to staff out of their own pockets every month.\u00a0 Although companies earning foreign currencies are still more popular, a number of women favor the banking industry now.\u201d
\n Next page: Long-held distrust and vigilance: citizens beware of the government<\/strong>...<\/p>\n

<\/a>

A money exchanger at a black market exchanging Chinese RMB with North Korean Won. 2013, in a northern part of North Korea(ASIAPRESS)<\/p><\/div>\n

 <\/p>\n

Long-held distrust and vigilance: citizens beware of the government.
\n <\/strong><\/p>\n

However, some residents are cautious about using the bank cards.<\/p>\n

A reporting partner in Musan County checked the usage of bank cards around him last December and reported the result: \u201cMany people don\u2019t use the card at all.\u00a0 Especially, those who transfer a large amount of money\u2013such as wealthy businesspeople, money exchangers, and traders\u2013are afraid that the government may find out the details of their transactions.\u00a0 It is because government organizations frequently censor banks.\u00a0 Therefore, the majority of businesspeople would continue to use an individually-owned black market transfer of money instead of a bank card.\u00a0 Transactions between state-owned companies are conducted via banks.\u201d<\/p>\n

Presumably, the North Korean government, by increased use of bank cards, intends to normalize the official financial system by inducing money of private financial sector into it and to restrict the non-transparent flow of money.
\n Related article:\u00a0[Video Report] National bus network of the North Korean market economy<\/a><\/span><\/strong><\/p>\n

The public finance system in North Korea lost trust among its people as the devaluation of North Korean Won had continued since around 2000.\u00a0 Also, people could not freely withdraw their deposited.\u00a0 What is worse, the unexpected denomination at the end of 2009 ended was total failure\u2013North Koreans had to exchange 1,000 Won notes for 10 Won notes.\u00a0 Until now, the North Korean people don\u2019t have trust in the finance system.<\/p>\n

It will take time for the North Koreans, after having been betrayed by the government, to be able to use the banking system at ease.<\/p>\n

\u3010Related article<\/strong>\u3011
\n \u25c6 \uff1cInside N. Korea\uff1e Market survey shows \u201cResolution 2270\u201d, the toughest-ever sanctions, didn\u2019t work<\/a><\/span>
\n \u25c6 \uff1cInside N. Korea\uff1e Worsened power supply paralyzed the train system, reportedly causing deaths in a stopped train<\/a><\/span>
\n \u25c6 \uff1cInside N.Korea\uff1e Is Economic Sanction Really Effective? Searching Effect from Retail Price Index<\/a><\/span><\/p>\n

\"rimjingang_banner001\"*\u00a0<\/span><\/a>Editor\u2019s notes on North Korean reporters<\/a>
\n <\/a>ALL REPORTS >>><\/a> <\/strong><\/span>
\n ARCHIVE(pdf) >><\/a><\/span>
\n DPRK MAP >><\/a><\/span><\/p>\n

\u00a0<\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

  2017\/Jan\/6 Following the issuance of bank cards for companies and individuals in local cities from the early 2016\u2026<\/p>\n","protected":false},"author":3,"featured_media":3561,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0},"categories":[7,12],"tags":[],"_links":{"self":[{"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/posts\/2898"}],"collection":[{"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/comments?post=2898"}],"version-history":[{"count":0,"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/posts\/2898\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/media\/3561"}],"wp:attachment":[{"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/media?parent=2898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/categories?post=2898"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/tags?post=2898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}