North Korea’s state-run mobile phone insurance program promises to reimburse policyholders for theft and technical failures, but the benefits rarely materialize in practice, with service center staff routinely denying valid claims and demanding documentation that policyholders cannot realistically provide.
A Daily NK source in South Hamgyong province said Wednesday that a middle-aged man in Hamhung recently had his mobile phone stolen at a market and went to his local mobile phone service center to claim the 70% theft reimbursement listed in his policy. Staff told him he needed to provide concrete proof of the theft. The man grew increasingly agitated and the dispute escalated into a physical altercation with service center employees.
Mobile phone service centers in North Korea are operated under the state postal and telecommunications authority and serve as the main point of contact for phone registration, repairs, and insurance. Policies are sold at phone retail counters and service centers across the country, with premiums set at 4% to 5% of the phone’s purchase price. A basic policy covers one year, with annual renewals available for up to three years.
Claims denied despite clear policy terms
The insurance terms cover three categories of loss: free repair for technical defects, 70% reimbursement of purchase price in cases of theft, and compensation for damage caused by natural disasters. Despite these written guarantees, the source said claims are routinely rejected on procedural grounds.
The Hamhung man had paid 120,000 North Korean won in premiums when he first purchased his policy. After his phone was stolen at a market, he presented his policy documents and requested the standard theft payout. The service center rejected his claim, arguing his evidence of theft was insufficient.
The source said this outcome is common. “In order to receive compensation, the policyholder has to prove exactly where and how they were victimized, and producing concrete evidence of that is not easy,” the source said. “Many people just give up on making a claim even when they have insurance.”
The pattern has fueled open resentment. North Koreans describe the insurance program as little more than a revenue mechanism for the state. “Insurance is just filling the state’s pockets,” the source said people frequently say. Some, however, take a more cynical view of claimants themselves, with others reportedly remarking that people who get their phones stolen at markets should bear some personal responsibility.
Despite widespread dissatisfaction, enrollment in the mobile phone insurance program has continued to grow. Service centers effectively treat signup as mandatory when selling phones, and the source said the high cost of handsets keeps people enrolling even when they have little confidence in the coverage. “Mobile phones are an essential part of daily life for business communication, remittances, and accessing information,” the source said. “Even if people are unhappy about the lack of real compensation, they sign up anyway because phones are so expensive and they want some protection just in case.”
Mobile phones have become increasingly common in North Korea over the past decade, with the Koryolink network, the country’s primary domestic cellular provider, reportedly serving millions of subscribers. Phones are used extensively for private commerce and money transfers through informal networks, making them a high-value asset and a frequent target for theft.
Reporting from inside North Korea
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May 21, 2026 at 10:40PM
by DailyNK(North Korean Media)