Smugglers in North Korea are now seeking jobs with trading companies to avoid crackdowns, as authorities intensify efforts to curb private smuggling. This shift allows them to continue trading legally while the state tightens controls on trade.
“Some traders in Hyesan have recently started looking for work at trading companies,” a Daily NK source in Ryanggang province said recently. “This is happening because authorities have stepped up enforcement against private individuals who smuggle in cooperation with trading companies.”
Previously, some individuals operated as independent smugglers in partnership with trading companies. But as North Korean authorities crack down harder on individual participation, smugglers are now seeking formal jobs with these companies.
Since North Korea closed its border due to COVID-19, private smuggling has become virtually impossible in border regions. However, state-affiliated smuggling continues, with private individuals earning money by unofficially collaborating with trading companies that conduct state-sanctioned smuggling.
For instance, importing used cars from China requires a trade permit, or _waku_. Since individuals cannot obtain these permits themselves, those with capital partner with trading companies that have access to permits. The individuals handle the actual importing while paying the companies a commission.
In essence, trading companies receive official permits from the state while individuals provide the investment and carry out the actual trade.
“Trading companies themselves lack funds, so they’ve been working with private individuals who have money to import Chinese goods, splitting the profits,” the source explained. “But recently, the central government has intensified inspections of trading companies and is cracking down on official partnerships with individuals, making things much harder.”
Under these circumstances, some individuals have begun officially joining trading companies to continue their trade activities more securely.
“With crackdowns resulting in harsher punishments, people who made money as smugglers increasingly feel it’s better to earn money safely, even if they make less,” the source said. “Since individuals can avoid crackdowns by trading legally through a trading company, wealthy individuals are increasingly joining them.”
However, joining a trading company comes with strict requirements, including participation in organizational activities and surrendering a portion of earned foreign currency to authorities. As a result, some private individuals remain hesitant.
“Some wealthy individuals avoid most organizational activities by paying a set amount annually to their neighborhood watch unit,” the source noted. “But if they join a trading company, they have to deal with inconveniences like attending weekly lectures, study sessions, and struggle sessions. For individuals, it’s a significant decision to make.”
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