How A North Korean Defector Sends Money Back Home
It may seem like North and South Korea are completely cut off from each other, but even after decades of separation, channels of communication persist. Defectors who have made it to freedom are bridging the gap, connecting people inside North Korea to the world beyond. Through extensive broker networks, they send back money and information, accelerating change in the world’s most authoritarian country.
Through this process known as remittances, millions of dollars are sent into the country every year, representing huge spending power. Here’s how they do it!
Reconnecting with Family
To send money back home, North Korean refugees must first contact their families. They hire brokers to find their relatives and arrange illicit phone calls close to the border with China, where smuggled Chinese cell phones can connect to international networks. In North Korea, people are often wary of such brokers, so they may have to be convinced with codewords or childhood nicknames that only the family would know, or recognizable handwriting and photos.
To avoid being caught, contact is often made from the mountain at night, or using a series of text or voice messages sent through apps like Wechat and quickly deleted. When the call finally happens, it can be emotional for both sides.
“You hear someone say, ‘Okay you’re connected, you can speak now.’ But no one says anything to each other. You just hear a high-pitched tone, and silence. Could this be real? You’re just crying, and can’t even speak.”
– Miso, escaped North Korea in 2010
How Remittances Work
There are different ways to send money to North Korea, but a simple version involves three parties: A North Korean resettled in South Korea, a remittance broker in North Korea, and the recipient in North Korea.
- A resettled North Korean, makes a request to a remittance broker to arrange a transfer. They wire money to a Chinese account controlled by that broker.
- The remittance broker in North Korea uses a smuggled Chinese phone to confirm receipt of the funds.
- After taking a hefty commission, they give cash to the refugee’s family. The family can confirm receipt of the money by sending a photo, video, or voice message back, so the sender can be confident that they’ve not been scammed.
With this process, the remittance broker in North Korea occasionally needs to replenish their cash on hand. This could happen through the physical smuggling of cash, but oftentimes money from their Chinese bank account is used to buy goods in China that are then sold in North Korea, generating cash. In this way, physical money never actually has to cross borders.
The Power to Change Lives
North Korea is one of the poorest countries in the world, whereas South Korea is one of the richest. Therefore remittances from relatives in South Korea or elsewhere can be absolutely transformative. The money is spent on almost everything, including food, clothing, shoes, medicine, housing, transport, and bribes to keep the family safe.
“I’ve sent money back to North Korea ever since I resettled in South Korea. I send an average of $1,500 a year. My parents used the money to buy a house! They’re also going to use it to help my younger brother escape and come to South Korea.”
– Jeonghyuk, resettled North Korean refugee
With new resources also comes new opportunities. North Koreans who never had the means before can now think about starting a business at the Jangmadang, or market. Since the collapse of the regime’s socialist economy in the 1990s, the markets have become essential to making a living. The flow of remittances is increasing trade, food security, marketization, and entrepreneurship, empowering ordinary North Koreans to gain autonomy.
A Ripple Effect
Along with money, North Korean refugees send back news and information from the outside world. At first, family members back home may not want to hear about life beyond the border. Decades of propaganda villainizing the outside world can be difficult to overcome, and if caught in communication with defectors, they could face serious punishment.
But as money continues to flow in, many people can’t help but be curious- what do their relatives outside do to make a living? What kind of house do they live in? Is life there like the K-dramas smuggled into North Korea? Conversely, defectors ask their family members, what they can do with the money in North Korea? This exchange of information is incredibly valuable, providing a glimpse into the most closed society on earth.
The flow of information into North Korea erodes the regime’s propaganda and changes worldviews. As the people learn more about the wealth and opportunities of the outside world, some may also risk their lives to escape. Money sent from remittances can also be used to fund this dangerous journey.
“When I first contacted my family back in North Korea after I resettled in South Korea, they didn’t believe that I was doing well here. My parents even resented me a little for leaving. But after I sent them money and told them more about my life here, their views changed. Now they realize that the regime has been lying to them and they’re not as loyal anymore. I have become a pioneer of freedom to my family back in North Korea.”
– Jo Eun, rescued by LiNK in 2017
Agents of Change
Remittances are about more than just the movement of money. Refugees who have been separated from their families aren’t able to go back home themselves, but can still care for their loved ones in some way. Every phone call into the country and every dollar sent back represents one small step towards the day when the North Korean people finally achieve their freedom.
More than 33,000 North Korean refugees have made it to freedom, and although it has become more difficult during the pandemic, surveys report that 65.7% have sent money back to North Korea. At LiNK, we’re committed to working with and building the capacity of North Korean refugees so they can succeed in their new lives and make an even bigger impact in their communities and on this issue.
Inside North Korea: People still suffer legacy of pandemic-era controls
The path to freedom is harder than ever. But the North Korean people haven’t given up. Join us this World Refugee Day in offering a way forward.
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During the pandemic, the regime took every opportunity to tighten its control under the guise of stopping the spread of COVID-19. Borders were sealed and reinforced, isolating the country and its people to an unprecedented extent. Trade was cut off, and the jandmadang—the markets that we’ve long highlighted as hotspots of change—were decimated.
Although the pandemic feels like history, the situation remains difficult as North Koreans recover from their most challenging period for a generation.
Information from inside the country has become increasingly difficult to obtain these last few years. But a landmark 2024 report from Human Rights Watch has offered some visibility into North Korea’s intensifying repression and the increased challenges North Korean people have faced.
Decimated Market Activity
“The prolonged border closures and restrictions on movement in-country have decimated the market activity that has become essential for the general population to access basic necessities.”
– Tomas Ojea-Quintana, then special rapporteur on the situation of human rights in the DPRK in March 2022 (via Human Rights Watch)
When North Korea’s socialist economy collapsed in the mid-1990s, triggering widespread famine, ordinary North Koreans negotiated their own survival through illicit trade and smuggling. Grassroots marketization was leading to opening and change in North Korea, centered around the markets—the jangmadang.
But when the regime closed its borders in 2020, almost all trade was cut off.
Human Rights Watch shares that according to official records, by 2021 North Korea was importing only 6% of what it had been importing in 2011—a staggering decrease. But these numbers still fail to fully capture the lives and needs of ordinary North Koreans, a sentiment echoed by the former North Korean traders that spoke with Human Rights Watch:
“There was a large but unmeasurable gap between what official trade numbers show and the quantities of products ordinary North Koreans need in their daily lives. This gap, previously narrowed by informal trade, became huge when informal trade and economic activity was almost completely choked off starting in 2020.”
Intensified Border Security
“We found a 20-fold increase in the number of new guard buildings or facilities since 2019, with a total of 6,820 facilities placed near new or improved fences… [and] almost 500 kilometers (over 300 miles) of new fences…”
– Human Rights Watch
Through satellite imagery analysis, Human Rights Watch reviewed 321 kilometers, or roughly one-quarter of North Korea’s northern border, to compare security measures from before and after the pandemic.
Prior to 2020, approximately 230 kilometers (71%) of the 321 kilometers analyzed were fenced. But in the years since, multiple layers of fencing have been newly constructed, along with new and upgraded guard posts. Based on 2023 satellite imagery, there is now a staggering 743 kilometers (over 460 miles) of fencing within the 321 kilometers analyzed.
Along with infrastructure, in August 2020, the North Korean government created 1-2 kilometer “buffer zones” along its border with China, and instructed guards to “unconditionally shoot” on sight any person or wild animal entering the zones without permission, as “the [COVID-19] pandemic is being spread through air and items.” There were reports of at least 14 people being shot and killed between September 2020 and July 2022.
Human Rights Watch spoke with Young Mi, a former herbal medicine trader in contact with a relative in North Korea, to hear how the extreme restrictions had affected life in border areas:
“It is more the emotional environment and fear more [than the actual physical barriers] … [My relative] is scared to leave because of… a general sense of terror much stronger than a bullet or a wire fence.”
Starvation and Food Insecurity
“North Korea is one of the poorest countries in the world and the government has persistently struggled to ensure food security, adequate childhood nutrition, and access to medicine.”– Human Rights Watch
Chronic oppression in North Korea has created one of the most impoverished countries in the world. A 2023 UN report estimated that 46% of the population face food insecurity. Those 12 million North Koreans aren’t just numbers, but people like Eunju.
Eunju escaped from North Korea in 1999, fleeing starvation during the “Arduous March,” a propagandized name for a period of widespread famine.
“When the Arduous March began, rations from workplaces were nearly cut off. At first, we managed by selling household belongings or trading them for food, but eventually, there was nothing left to exchange. People would sigh, saying, ‘We can’t even trade our empty house for a single block of tofu.’
When spring arrived, we ate every kind of wild plant we could find, even peeling bark off pine trees, boiling and pounding it for days to make it edible. Although I managed to survive, death was everywhere. Some consumed nothing but wild plants and died from poisoning. Some were shot by soldiers while trying to steal corn from farms. Some were publicly executed for slaughtering and eating a cow. Some were orphaned street children, beaten to death for trying to steal food from others.
People lost their lives in different ways, but in the end, they all died trying to survive. The root cause was the same—severe food shortages.”
In 2021, Kim Jong Un urged the people to “wage another more difficult ‘Arduous March.’” Yet the regime continued to restrict cross-border trade and prioritize weapons development, all while neglecting domestic food production.
In the report from Human Rights Watch, Jiro Ishimaru, the director at Asiapress, shared that “In 2021, there were reports of people with disabilities and older people dying of starvation... after over three years of extreme difficulties, in April and May, there was a spike in reports of whole families and ordinary people dying of starvation in urban areas near [North Korea’s] northern border.”
Crackdowns on Foreign Media
“Simply watching [foreign] media content can result in a sentence of forced labor of over 10 years in a forced labor prison camp… Public executions of offenders are permitted, evidently to increase a sense of fear and alarm among the population”
– Human Rights Watch
The near-absolute control of information and media is one of the key ways that the regime disempowers and represses North Korean people. During the pandemic, it imposed several new laws that increase the severity of punishments for being caught with foreign media, and go as far as to restrict how individuals can express themselves.
Human Right Watch outlines the main additions:
- Reactionary Ideology and Culture Rejection Law (December 2020) “bans people from smuggling, viewing, and distributing ‘reactionary’ and ‘anti-socialist ideology and culture’”
- Youth Education Guarantee Law (September 2021) “bans young people from copying foreign culture and reorients them to a ‘socialist lifestyle’”
- Pyongyang Cultural Language Protection Act (January 2023) “permits the authorities to punish people for using South Korean intonations or slang”
Offenders could be sentenced to 6+ years of hard labor, or “if the severity of the crime is deemed high,” the death penalty.
The timing of these new laws is no coincidence. As North Koreans face a reality that is increasingly distant from the propaganda they’ve been told to believe, foreign media has the potential to further erode the regime’s legitimacy and control.
Our North Korean friend, Yulseong, shared how foreign media impacted his perception of the the regime and his ultimate decision to leave in 2018:
“I was introduced to music and movies from other countries through my friends. For movies, I loved James Bond and other Hollywood films. While watching them, I realized that North Korea was truly a poor country, and it made me want to leave as soon as possible.
For songs, I listened to ‘Bingo’ by Turtles, ‘Pure Love’ by Koyote, and music by Jatanpung. Seeking out songs about life and love is a basic human desire. Even if people fear punishment, that desire cannot be suppressed. That’s why, even today, I believe many North Koreans continue to watch foreign content.”
Lack of Access to Healthcare
“The DPRK Socialist Constitution and the country’s Public Health Law provide for free medical care to all citizens. In reality, medical supplies and medication are unavailable to most North Koreans and only those who can afford to purchase them on the private market.”
– Human Rights Watch
North Korea’s defunct healthcare system is another example of how the regime’s constraints create unnecessary hardship for North Korean people. The majority of the country’s public health system collapsed along with North Korea’s socialist economy in the 1990s. In the aftermath, the regime only prioritized hospitals in areas like Pyongyang, leaving ordinary North Koreans to fend for themselves.
According to a 2017 UN report, an estimated 33% of the population (8.4 million people) had limited access to health services, including 50% of people in rural areas.
Human Rights Watch spoke with a former North Korean doctor and nurses who escaped after 2014, who shared that, “most local clinics were only capable of diagnosing basic diseases and setting broken bones, and had barely any working tools, supplies, medicine, or electricity… medical workers relied on market activity and what their patients gave them to eat to survive.”
For our North Korean friend Lily, the most frustrating part was that all this suffering was preventable.
“When my older sister, Hye-Joo, developed acute appendicitis, there was no emergency line to call, or cars or taxis to transport her to the hospital. We loaded her onto a cart that was meant to carry produce, moving at a terribly slow pace.
Desperate to ease my sister’s pain, we exhausted every resource we had. Any surgical or medical equipment a patient needs has to be provided by the family. Gauze, painkillers, blankets–even food and bribes–may be necessary for an operation. Even then, severe shortages made it impossible to fully prepare. The surgery was performed with minimal anesthesia and makeshift sterilization. Later, my sister told me she had felt the knife cutting into her skin, and heard the doctor’s orders during the surgery.
What should have been a simple and safe procedure was a traumatic, life-threatening experience.”
Impact on this Issue
In the face of enormous challenges, we cannot be discouraged, because this work is more important than ever.
There are still things we can and must do to strengthen forces of change. LiNK is one of the few groups still running rescue operations in the underground railroad. We’re cultivating and partnering with North Korean activists and storytellers who are leading efforts to raise global awareness for this issue. And we’re ambitiously expanding our Information Access Programs, devising new strategies and pathways to get information and technology inside North Korea to empower the people.
Join us in reaffirming our commitment to a free North Korea.
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Change has never been a linear process. But one thing we can always be certain of is the resilience and strength of the North Korean people.
