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.
From North Korea to Seoul National University | Noah’s Story
The house was too small. There was nowhere to hide, and so we had to leave.
I was only 8 years old when my parents divorced. My father was a violent alcoholic, and every day he would beat my mother, sister, and me. North Korea’s laws didn’t protect us from him, so my mother tried to protect us instead. My father stabbed her in the lungs for it.
We were suffocating, but there was no one to save us. The police, the law, and the regime didn’t care. So we left.
First, from our hometown. We moved to a remote city to escape our father’s shadow, but North Korea is a patriarchal society so families like ours are looked down upon. All people saw was a divorced woman and her fatherless children. They didn’t see my mother, who came back from the brink of death to protect her children at all costs. They didn’t see my older sister, who ran her own business and worked away from home to support our family.
All we had was each other, and everything we had, we shared. I remember the snacks we used to buy, the delicious things my sister would bring home and split three ways. We endured 8 years like this, surviving hardships and prejudice with little bits of sweetness.
With no social welfare or food rations to depend on, we had no hope of escaping extreme poverty and hunger. We tried our best, but there were days when I went to school starving. One time, while the other kids were getting ready to eat lunch, I snuck out to forage in a nearby mountain. I found some unripe apricots and ate them to satisfy my hunger. After school that day, I ran home and found some rice porridge leftover in the pot. Without thinking, I ate it all, only to find out later that my mother had sold her clothes in exchange for the rice.
That was worse than the hunger–the helplessness as I watched my mother sell her beloved belongings one by one.
We were still suffocating in a country that told us to be small and silent. To live so invisibly, perhaps they hoped we’d disappear altogether. And so we did. We left North Korea, in search of somewhere with breathing room. Somewhere we wouldn’t have to run from again.
That was eight years ago. My family lives in South Korea now. Today, my mother, who fought hard to protect her two children in a place with no freedom or human rights, works as a school teacher for other refugee children. My sister has since graduated from nursing school and works as a full-time ICU nurse. They’ve never stopped being the strongest, most loving people in my life.
I’m here because they protected me. And now, I can protect them too.
I used to be a terrified, 8 year-old boy, who could only rely on his mother. Now, I’m her proud son, studying politics at Seoul National University – the most prestigious college in South Korea.
As I learn and grow, I’m able to understand my past and leverage it for a better future. The politics and systems that people live under, the environments and experiences that people carry with them – all of these things can be different. But in the end, we are all people. We set the standards for our freedom. We can be the ones who bring change.
When I think about how my family used to live and how we live now, it’s actually easier to remember the bright, happy moments in North Korea, because they were so few and far between. Now, happiness is happenstance – it’s everyday and mundane. And I realize that’s what it must mean to be free. That I know this sweetness will stay, and I can too.
Noah was part of our 2022 class of Advocacy Fellows, a program that supports and develops the next generation of North Korean leaders, storytellers, and advocates. For three months, he traveled across the United States, sharing his story at universities, Fortune 500 companies, embassies, thank-tanks, and The White House. Ultimately, Fellows are working to bring a greater focus to the North Korean people and human rights issues rather than just politics.
We’re only able to sustain these life-changing programs because of your support.
