{"id":5874,"date":"2022-06-29T17:14:40","date_gmt":"2022-06-29T08:14:40","guid":{"rendered":"https:\/\/www.02.asiapress.org\/rimjin-gang\/?p=5874"},"modified":"2022-07-25T09:50:39","modified_gmt":"2022-07-25T00:50:39","slug":"market-research","status":"publish","type":"post","link":"https:\/\/www.02.asiapress.org\/rimjin-gang\/2022\/06\/society-economy\/market-research\/","title":{"rendered":"\uff1cInside N. Korea\uff1e Using market surveys to understand the economic situation (1)\u2026Chinese-made products nowhere to be found\u2026Replaced by domestic soap, toothpaste and clothing"},"content":{"rendered":"
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File Photo: A view of a market in Chongjin, in North Hamgyung Province, the country\u2019s third largest city. Taken by ASIAPRESS in September 2013.<\/p><\/div>\n

Surveying market trends are an essential way to understand North Korea\u2019s economy, whose realities are largely unknown in the outside world. What kind of things are sold in the country\u2019s markets, and where are they made? Even this kind of basic information is hard to come by in the North Korean context. ASIAPRESS recently conducted a survey in mid-April of four government-run markets in cities located in the northern party of the country. ASIAPRESS will report the results of the data it found in two installments. The first installment concerns North Korea\u2019s \u201cdaily necessities,\u201d such as soap and medical supplies. (ISHIMARU Jiro, KANG Ji-won<\/em>)<\/p>\n

\u25c6 A difficult survey environment<\/h2>\n

ASIAPRESS has five reporting partners in the northern part of the country who conducted the market surveys. The survey efforts were attempted in four cities spread across North Pyongan Province, Yanggang Province and North Hamgyung Province; however, delays in reporting and insufficient data forced ASIAPRESS two summarize the results of the survey from just Hyesan and another city in North Hamgyung Province, nicknamed\u201cCity A.\u201d<\/p>\n

The biggest roadblock in conducting the surveys was communication. ASIAPRESS communicates with its reporting partners through Chinese cell phones smuggled into North Korea. The Kim Jong-un regime not only uses powerful jamming equipment on the border with China to block communication, but it is also conducting massive crackdowns on people who communicate with the outside world through roaming patrols equipped with communications detection devices.<\/p>\n

While ASIAPRESS has reporting partners in Pyongyang, South Pyongan Province, and Kangwon Province, communicating with them has become more difficult after restrictions were placed on movement when North Korea closed its borders in January 2020. Reporting partners have also been hesitant to conduct market surveys of other areas using domestic phones over concerns about being tapped by the authorities.<\/p>\n

\u25c6 Logistics difficulties<\/h2>\n

ASIAPRESS planned to wrap up its market surveys by April 12. That was because the \u201cFestival of the Sun,\u201d a ceremony to honor the 110th anniversary of Kim Il-sung\u2019s death on April 15 would be held soon after that point, followed by a major military parade. ASIAPRESS believed that the items on sale and their prices could be impacted by these events.<\/p>\n

The \u201cFestival of the Sun\u201d has become the country\u2019s biggest holiday, and every year the authorities distribute cookies and other foodstuffs to the people for free as gifts from the leader. What the authorities have distributed over the past 20 or so years has been very poor quality, yet they are nonetheless sold in the markets. The market surveys, for various reasons, were not completed until late April in some regions, and data from these regions have been taken out of the final results.<\/p>\n

On May 12, the Kim Jong-un regime officially acknowledged an outbreak of COVID-19 for the first time and moved to completely ban movement between different regions of the country. Cities were put under lockdown, with the movement of its residents banned. Markets were closed as well.<\/p>\n

Most urban lockdowns were lifted by mid-June, leading to the reopening of markets. However, as of June 27, bans on movement between cities continues to be strictly controlled. This has led to major bottlenecks in the distribution of goods, and the number of items for sale in markets has fallen dramatically when compared to the market surveys taken back in April.<\/p>\n

Readers should thus take into account the aforementioned limitations and changes in the situation in North Korea when reading this report. For reference, 1,000 KPW was around 0.156USD as of mid-April. <\/p>\n

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Map of North Korea ( ASIAPRESS)<\/p><\/div>\n

\u25c6 A breakdown of what\u2019s being sold in N. Korean markets<\/h2>\n

A list of prices of manufactured goods collected in mid-April 2022.<\/p>\n

\u201cCity A\u201d: A city in North Hamyung Province<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Item<\/strong><\/td>\nOrigin<\/strong><\/td>\nPrice (Per Item)<\/strong><\/td>\n<\/tr>\n
Washing Soup<\/td>\nSinuiju<\/td>\n4,000<\/td>\n<\/tr>\n
Laundry Soup<\/td>\nSinuiju<\/td>\n3,000<\/td>\n<\/tr>\n
High-quality Shampoo<\/td>\nPyongsong<\/td>\n7,000<\/td>\n<\/tr>\n
Toothpaste<\/td>\nSinuiju<\/td>\n1,500<\/td>\n<\/tr>\n
Toothbrush<\/td>\nSinuiju<\/td>\n700<\/td>\n<\/tr>\n
Socks<\/td>\nPyongsong*<\/td>\n1,200<\/td>\n<\/tr>\n
Shoes<\/td>\nSinuiju<\/td>\n18,000<\/td>\n<\/tr>\n
Children\u2019s Clothing<\/td>\nPyongsong*<\/td>\n35,000<\/td>\n<\/tr>\n
High-quality Underwear<\/td>\nPyongsong*<\/td>\n15,000<\/td>\n<\/tr>\n
High-quality Jumper<\/td>\nPyongsong*<\/td>\n135,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Hyesan, Yanggang Province<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Item<\/strong><\/td>\nOrigin<\/strong><\/td>\nPrice (Per Item)<\/strong><\/td>\n<\/tr>\n
Washing Soup<\/td>\nPyongsong<\/td>\n5,200<\/td>\n<\/tr>\n
Laundry Soup<\/td>\nPyongsong<\/td>\n3,700<\/td>\n<\/tr>\n
High-quality Shampoo<\/td>\nPyongsong<\/td>\n12,000<\/td>\n<\/tr>\n
Toothpaste<\/td>\nPyongsong<\/td>\n1,800<\/td>\n<\/tr>\n
Toothbrush<\/td>\nPyongsong<\/td>\n800<\/td>\n<\/tr>\n
Socks<\/td>\nPyongsong*<\/td>\n1,500<\/td>\n<\/tr>\n
Shoes<\/td>\nSinuiju<\/td>\n21,000<\/td>\n<\/tr>\n
Children\u2019s Clothing<\/td>\nPyongsong*<\/td>\n42,000<\/td>\n<\/tr>\n
High-quality Underwear<\/td>\nPyongsong*<\/td>\n22,000<\/td>\n<\/tr>\n
High-quality Jumper<\/td>\nPyongsong*<\/td>\n150,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u203b 1,000 KPW equals around 0.156USD<\/p>\n

\u203b Sinuiju is the biggest center of trade with China and boasts cosmetics and shoe factories run by the state. Pyongsong is located directly north of Pyongyang and is a major logistics center linking together all areas of the country. The city has long been a center for clothes manufacturing and wholesalers.<\/p>\n

\u203b Origins denoted with a \u201c*\u201d refer to items that were manufactured by individuals through contracts with small-scale businesses. The shoes referenced in the surveys are made of cloth and are the cheapest and most commonly used by people in the country.<\/p>\n

\u25c6 Domestically manufactured goods are low in quality<\/h2>\n

After North Korea shut down its border with China in late January 2020 to prevent the spread of COVID-19, imports into the country fell dramatically, leading to a sudden disappearance of Chinese goods from markets. Domestically made products began being sold in their place, but reporting partners have unanimously told ASIAPRESS that these products are \u201cgenerally poor quality and lack diversity.\u201d<\/strong><\/p>\n

There are several major production centers for clothing in Pyongsong, which include state-run factories. There are also private companies who make clothing through contracts with small-scale businesses, an arrangement generally termed gagong.<\/p>\n

In the past several years, the Kim Jong-un regime has exerted more control over private economic activities, which has negatively impacted businesses involved in logistics, fishing, food and clothing production, and even small-scale coal production. These businesses pay to work under the auspices of enterprises or state agencies \u2013 an arrangement in North Korea terms giji; essentially, they are working under-the-table.<\/p>\n

While private economic activities have now been heavily restricted by the state, it appears that private businesses involved in clothing production in Pyongsong are still surviving. Their products, which include imitations of Chinese clothing such as high-quality jumpers, are reportedly of good quality. Products produced by state-run factories are cheap but of poor quality, while those created by these private companies are expensive but of good quality.<\/p>\n

In general, Hyesan is more expensive than \u201cCity A,\u201d perhaps because of costs related to transporting the goods. Before the COVID-19 pandemic, Hyesan was a major center of trade with China, with wholesalers selling large amounts of Chinese goods to cities throughout the country. Following the border\u2019s closure, however, the city has become known for its expensive transportation costs.<\/p>\n

One Hyesan reporting partner told ASIAPRESS that, \u201cThere\u2019s not much being sold in the markets now except for agricultural goods and food. That\u2019s because nobody has any money.\u201d<\/strong> North Korea\u2019s excessive efforts to prevent the spread of COVID-19 has led to an economic downturn, which has led to falls in the amount of cash people have on hand. (Continued in the next installment)<\/p>\n

\u203b ASIAPRESS communicates with its reporting partners through Chinese cell phones smuggled into North Korea.<\/p>\n

 <\/p>\n

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