North Korea’s cabinet has issued orders to provincial commerce bureaus nationwide to strengthen market controls and economic management, Daily NK has learned.
According to a source in Jagang province recently, the local commerce bureau received directives on Nov. 22 to adjust market operations, limit grain distribution, and expand electronic payments. Similar orders were sent to commerce bureaus across the country.
The orders are linked to the “20×10 regional development policy,” reflecting the government’s aim to boost regional economies and increase market transparency while maintaining a balance between planned and market economies.
The cabinet has granted provincial commerce bureaus new authority to independently adjust market operating hours based on seasonal needs. Previously, such adjustments required multiple levels of approval, but the new directive eliminates this bureaucracy.
Officials at the province’s commerce bureau believe this increased autonomy will help them better manage labor resources, particularly for agricultural support and disaster response.
The bureau plans to review operational changes throughout December before implementing the cabinet orders in early 2024, incorporating them into its administrative framework.
Regarding food distribution, the cabinet has ordered provincial commerce departments to restrict bulk grain sales at markets. Starting Dec. 1, Jagang province will impose daily sales limits on individual grain vendors to control prices.
The directive also mandates the implementation of QR code and barcode payment systems at major markets in larger cities, with merchant training for electronic payments.
“The government aims to use vendors’ mobile phones to increase transparency and control cash flow,” the source said. “However, some commerce bureau officials expect slower adoption in smaller markets due to limited mobile phone usage.”
“While this measure aims to strengthen economic oversight, requiring QR code payments for small grain transactions seems impractical. Older vendors may also struggle to adapt to the new system,” the source added.
Choi Ji-young, a research fellow at the Korea Institute for National Unification, commented, “North Korea’s recent policies focus on stimulating regional economies and increasing revenue. These orders appear to give local committees more authority to address budget shortfalls, following earlier increases in market fees.
“North Korea continues pushing electronic payments to control prices and integrate private funds into the official economy while improving tax collection. With ongoing legal and tax code adjustments, success could boost fiscal capacity. However, addressing soaring market exchange rates remains crucial,” Choi noted, adding that merchants might circumvent these measures by accepting foreign currency.
Daily NK works with a network of sources in North Korea, China, and elsewhere. For security reasons, their identities remain anonymous.
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December 10, 2024 at 10:56AM
by DailyNK(North Korean Media)