North Korea has taken an unprecedented step: paying farm workers in devalued local currency instead of their usual share of crops.
A source in North Pyongan province reported recently that farm workers in Yongchon and Yomju counties received cash payments rather than grain. Similar reports from Sukchon county in South Pyongan province suggest this practice may be nationwide.
Traditionally, collective farm workers receive a portion of crops proportional to their year’s work, though state and military quotas typically reduce their share to 40-60% of what they’re owed. While this system kept workers in poverty, it at least ensured basic food security during shortages.
The switch to cash payments has alarmed workers, who received 4,500 won per kilogram of rice owed. For example, a worker entitled to 300 kilograms received 1.35 million won. However, this rate significantly undervalues the grain – rice was trading at 9,000 won per kilogram in Pyongyang markets as of Dec. 7, effectively halving workers’ compensation.
“Even though households with multiple workers are receiving seemingly large sums like 4-5 million won – an amount rarely seen here – they know this money won’t buy the grain they’re actually owed,” the source explained.
Adding to workers’ concerns, the payments allegedly include donpyo (cash vouchers) worth 50,000 won each. These vouchers typically trade at a discount to their face value, further diminishing workers’ real compensation.
“Workers suspect the government is deliberately shortchanging them with devalued currency. They’re questioning what happened to the bumper crop that state newspaper Rodong Sinmun celebrated,” the source said.
Faced with depreciating currency, farm workers are rushing to purchase corn, which costs roughly half as much as rice. However, this surge in demand could drive up corn prices as well.
“Nobody wants to hold onto domestic currency given its unstable value,” the source added. “Workers would prefer their usual grain payments, or ideally, U.S. dollars – though they dare not voice such preferences publicly.”
December 27, 2024 at 01:04PM
by DailyNK(North Korean Media)