For many years, the world has been shielded from the truth about North Korea and its people. We do know that the country is led by an autocratic, totalitarian leader – Kim Jong-un – and that the people there live under stringent sanctions. But what is the economic background of North Korea? Is there really an esoteric class of millionaires living in the country?
North Korea is known to have the lowest Gross Domestic Product (GDP) of the countries in Asia. It is estimated that the per capita income of the country was just US$1,300 in 2018, compared to the neighboring South Korea’s US$31,500. North Korea is known to have a completely centrally planned economy, with a large share of the GDP coming from the state-controlled sector. Most of the country’s trade and industry are either in the hands of the state or the Korean Workers’ Party. It is no surprise then, that North Korea is listed as one of the world’s poorest countries.
However, reports suggest that due to the clandestine economic activities coming from China and the erstwhile Soviet Union, the upper and middle-class of the country have access to wealth and luxury. There is also evidence to suggest that there is a tightly knit class of individuals who are involved in black market activities and are easily categorized as “rich people” due to their annual earnings. These individuals often keep their wealth hidden in accounts and investments overseas, although they do not manage to amass the super-rich status that one would define as a millionaire.
After the North Korean government launched the “Byungjin line” to increase military power, surviving on private trading became more difficult for ordinary people. Many North Koreans, however, have proved their resilience by finding innovative ways to survive. At present, North Korea is a great example of the power of an economy based on private trading as traders often have to cross international borders to purchase and sell goods. Most of these traders come from a relatively wealthy and privileged class, with access to more resources than most North Koreans enjoy.
These traders are seen by some to be the equivalent of North Korea’s millionaires, as they often boast of luxurious lifestyles and can afford to purchase items that otherwise would not be available to most North Koreans. In 2018, a report revealed that 95% of all commercial vehicles in North Korea belonged to the traders.
It is believed that the North Korean government is well aware of the “millionaires” in its country and thus, exercises stringent regulations and tight control over the movement of these “wealthy individuals”. Reports suggest that North Korea’s government has confiscated luxury cars, cash and other assets from these traders, which it then uses to fund its military programs and other ventures. It can also be argued that these traders are to some extent supporting the North Korean regime, as they normally don’t invest any money or resources in opposing or ousting the present government.
Is There a Privileged Class in North Korea?
The answer to this question is a resounding yes. Reports indicate that though North Korea is one of the poorest countries in the world, there exists a prominent class of well-off citizens, Although statistics are hard to come by, some reports have suggested that roughly 3 percent of North Koreans now have access to more wealth. This is mostly thanks to the underground trading activities with China and the clandestine activities being conducted by the North Korean elites.
In spite of the restricted access to wealth, these traders have been able to benefit from their situation, with some of them becoming incredibly wealthy in the process. North Korean millionaires are essentially entrepreneurs who have managed to circumvent tight government regulations and harsh sanctions.
Reports have suggested that most of these traders are in the business of smuggling goods across the border or trading in commodities such as coal, and in the process, have managed to earn a fortune. Others have benefitted from shady financial dealings with the elite circles, while there are many individuals who have benefited from the lucrative trade of drugs and weapons.
Though these tales of North Korean millionaires may appear far-fetched to some, a closer look at the situation in the country reveals that this phenomenon is very much real. In spite of their restricted scope of wealth, the upper and middle-class of the country must not be forgotten, as these individuals are the ones who are really shaping the country, both economically and politically.
What are the Social Implications of This Phenomenon?
The emergence of wealthy individuals in North Korea is believed to have had a far-reaching impact on the existing social structure as well. Reports suggest that the rise of these individuals has caused an increase in the level of inequality among the populace. The traders have access to a wider set of resources and privileges than the average North Korean and this has further led to a greater level of alienation among the citizens.
It has also been argued that the emergence of the North Korean millionaires has posed a challenge to the authority of the North Korean regime. It is believed that certain individuals in the upper classes of the country are able to exploit the existing regulations and sanctions to their own benefits, and it is this class that is being seen as a threat to the ruling establishment.
However, this phenomenon is also seen as an opportunity for the North Korean millionaires to benefit the general population as well. Reports suggest that these individuals may be influential enough to push the government to make certain reforms and open the country to investments from the outside world. Such a move could go a long way in ameliorating the economic situation of North Korea.
Do North Korean Millionaires Enjoy Luxyuries?
It appears that though North Korea does have a significant number of millionaires, these individuals do not tend to flaunt their wealth. Reports suggest that the most affluent North Koreans rarely ever buy luxury items such as cars or expensive jewelry.
This is likely due to the fact that the North Korean government would take swift action against them if they do so. As such, the North Korean millionaires are known to keep a low profile and ensure that their wealth is well hidden. In spite of this, there exists a society of elites in the country who do have access to luxurious items, though these individuals are rarely ever associated with being millionaires.
What is the Future of the North Korean Millionaires?
Given the fact that the North Korean millionaires have managed to survive in their current conditions, it is safe to assume that they will continue to do so in the future. It is highly unlikely that these individuals would risk the wrath of the North Korean authorities by investing in any lucrative projects outside of the country.
As such, it can be expected that the North Korean millionaires will remain in their current social class for the foreseeable future, although their actual wealth may vary as international sanctions come and go.
Do North Korean Millionaires Fund Political Causes?
Given the nature of the North Korean government and its strong stance on political changes, it is extremely unlikely that the North Korean millionaires will ever invest in any political groups or causes. It is believed that the North Korean authorities take a very dim view of anyone who tries to challenge or oppose them through political means and thus, all the wealthy individuals in the country focus their resources and investments on more profitable ventures.
That being said, some reports have suggested that certain North Korean millionaires are actively taking part in clandestine activities that are beneficial to the North Korean government. These activities often involve the purchase of weapons and equipment from other countries, which are then allegedly utilized by the North Korean military.
This kind of activity indicates that the North Korean millionaires may be actively engaged in funding certain projects and activities, although these are mainly for the benefit of the North Korean government, and not for any political causes.
Conclusion of North Korean Millionaires
To sum it up, it is safe to assume that the presence of North Korean millionaires is indeed real and due to the clandestine economic activities conducted by the upper and middle-class of the country, these individuals have managed to accumulate a significant amount of wealth. This has been seen to have a huge impact on the social structure of the country, with inequality among the citizens increasing significantly. This phenomenon has also posed a challenge to the authority of the North Korean government, as certain individuals are able to exploit the existing laws to their own benefit.
However, these North Korean millionaires are unlikely to risk the wrath of the government by investing in any political causes. Thus, it can be expected that in the future, their wealth will remain mostly untouched and the North Korean millionaires will remain in their present social class.
