A sweeping corruption investigation has reportedly been launched in Sariwon, North Hwanghae province, targeting donju, North Korea’s class of wealthy private entrepreneurs, and the officials who colluded with them in local housing construction in 2026. State-owned construction materials were allegedly diverted for the illegal construction and sale of private homes, fueling tension among donju and local officials across the city.
A source in North Hwanghae province told Daily NK on Thursday that the economic inspection division of the Sariwon branch of the Ministry of Social Security, North Korea’s police agency, has teamed up with the city prosecutors’ office to root out corruption tied to donju and officials involved in housing construction during the first half of the year, acting on a decision by the provincial party’s executive committee.
According to the source, the inspection ran through the end of June, examining the scale of investment and secret ledgers kept by donju involved in home and rural cultured house construction in Sariwon and surrounding villages, while investigating possible collusion with officials. Rural cultured houses are a standardized style of state-promoted housing built for farming communities.
The investigation reportedly covered not only officially approved construction projects but also those funded through illegal investment, as well as sites still under construction. Authorities focused on how materials were allocated, how funds flowed, and whether officials provided administrative cover.
Key suspects arrested in housing corruption probe
Three key suspects, including a Sariwon city bank section chief, a city people’s committee official, and one donju, were reportedly arrested by the Ministry of Social Security on June 21, when the investigation intensified, on charges of diverting state-owned cement and rebar for personal gain.
“The bank section chief and the people’s committee official who were arrested are accused of using their authority to illegally divert state-controlled cement and rebar to the donju,” the source said. “The donju is said to have posed as an investor in local home and rural cultured house construction, while actually building additional unauthorized private homes and illegal structures to profit.”
The scheme reportedly involved bribery for material allocation, falsified ledgers, illegal construction, black market sales, and the splitting of profits among those involved. The bank section chief reportedly arranged for the donju to receive priority allocation of state materials in exchange for financing favors, while the people’s committee official is accused of providing administrative cover and falsifying the ledgers tracking the diverted materials.
Using the diverted materials, the donju reportedly built structures beyond officially approved projects and secretly sold the completed illegal homes to wealthy buyers for large sums. Authorities believe the resulting profits were regularly split among the officials and the donju involved.
With all three key suspects arrested at once, donju in Sariwon’s markets and city administrative officials are reportedly on edge over how far the investigation could spread. Anxiety is said to be growing amid talk that ongoing housing and rural cultured house construction sites could also come under scrutiny.
“Donju and administrative officials across Sariwon are on high alert after the bank section chief, the people’s committee official, and the donju were all taken into custody at once,” the source said. “There is talk that this investigation won’t stop at punishing a few individuals but could expand into a broader look at construction materials and investment funds overall.”
Sariwon residents have reportedly said the illegal practice of diverting state materials to build and sell private homes was exposed by a single decision from the provincial party. The source said prominent donju in Sariwon and the officials colluding with them are anxious they could be next, given talk that the investigation may expand to cover all construction sites currently receiving investment, describing the tense mood inside the city.
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July 3, 2026 at 07:51AM
by DailyNK(North Korean Media)