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.
Crisis for North Korean Human Rights NGOs: Urgent Support Needed
The North Korean human rights movement is at a critical crossroads.
Unprecedented cuts to U.S. foreign aid under the Trump Administration have impacted projects around the world, including that of crucial South Korean NGOs working on the North Korea issue.
Until funding is fully resumed, these organizations face the prospect of downsizing or shutting down, threatening the entire ecosystem of groups working for the rights and freedom of North Korean people. Life-changing programs and decades of progress inside and outside North Korea are at risk of being undone.
Your immediate support is needed to help save the most critical projects of these organizations. LiNK has identified the core groups essential to preserving progress on this issue and has launched an emergency support fund—100% of donations will go directly to sustaining them through this crisis.
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Historical Funding for North Korea-Focused NGOs
In the mid-1990s, reports of a devastating famine in North Korea and the first waves of refugees fleeing starvation caught the attention of South Korean activists. They travelled to the border of China to investigate and, realizing the severity of the situation, began campaigning in South Korea and internationally. For the first time, there was visibility on the humanitarian crisis and vast human rights violations happening in one of the most closed countries in the world.
In the wake of the Cold War, many politicians and governments had little interest in North Korea beyond seeing it as an emerging security problem. The widespread assumption was that the country would soon collapse, just as many other socialist countries had in the late 20th century.
To address the lack of action and attention, several groups focused on North Korean human rights emerged. Citizens Alliance for North Korean Human Rights was founded in 1996. NKnet was founded in 1998 and launched Daily NK in 2004. NKDB was established in 2003. Liberty in North Korea was founded in 2004.
From direct support for North Korean refugees, activism expanded to documenting human rights violations, raising public awareness, pressuring governments to take action, and getting outside information to people inside North Korea through broadcasts and USB smuggling. As the movement and North Korean defector population grew, new groups led by North Koreans themselves also emerged.
All organizations started with very few resources, and funding has often been an issue for groups in South Korea. Given the politicized nature of North Korea, support for activism has frequently fluctuated. When the political atmosphere aligned with this work, more funding would be available from the South Korean government. But when politics and administrations changed, grants dried up and public support would wane. In some cases, NGOs would even be subject to politically-motivated investigations, further hindering their vital work.
In late 2024, South Korean President Yoon’s martial law declaration and the subsequent impeachment proceedings once again left North Korean human rights organizations with a government unable to help, and a political environment not conducive to gaining support.
In these difficult circumstances, many groups in South Korea have come to rely on funding from international sources. As U.S. interest in the North Korea issue had grown in D.C., grants through the National Endowment for Democracy (NED) and the State Department (DRL) had become consistent and reliable sources of funding. Unlike those sometimes offered by the South Korean government, these grants covered not only the cost of activities, but also staff salaries, making it possible for these groups to operate sustainably.
U.S. government support had historically been immune to the kind of political winds that affected South Korean government funding. But recent US government disruption has left these NGOs on the brink.
U.S. Foreign Aid Freezes
The Trump administration started its second term with immediate cuts to U.S. foreign aid programs. State Department grants were frozen and the NED's funds were cut, suspending dozens of crucial grants to NGOs working on North Korea and leaving an uncertain picture of when or if funding might resume.
With the world’s largest economy, the U.S. was the biggest provider of foreign assistance by a significant margin. This loss of funding is unlikely to be replenished by other sources. Many European countries have also recently slashed their foreign assistance contributions to spend more on defense.
For South Korea-based NGOs, this funding disruption leaves a huge gap with very few options to fill it in South Korea or elsewhere. As a result, nearly all of these organizations are being forced to lay off staff, stop critical projects, and even consider the unthinkable: shutting down for good.
What This Means for LiNK & the Issue
LiNK is built on a funding model that is independent from government budgets, and is not directly affected by the recent aid freezes. But if the larger ecosystem of North Korean NGOs that we operate within diminishes or collapses, it will inevitably have an impact on the scope and efficacy of our work.
Even with an issue as big as North Korea, the community of organizations and individuals doing this work is relatively small. All our efforts are interconnected and mutually reinforcing. With many frontline NGOs now in danger, it jeopardizes progress on this issue as a whole.
LiNK relies on the research of these other groups to inform our programs. We join forces with them for international advocacy, share ideas, and consult each other on critical projects. With confidence in the vast array of work that these groups are doing, LiNK is able to be laser focused on a few select projects and maximize our impact.
Organizations like Human Rights Watch, UN agencies, global media outlets, and researchers also depend on these groups for their contacts, networks, research, and advocacy. Without their work and insights, globally we would be left in the dark about the current state of North Korea.
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In South Korea, the individuals working on this issue are doing so with significant personal sacrifice. Given the unstable and politicized nature of the work, many activists have struggled to make a living wage, and face concern and criticism from their peers.
Funding through NED and DRL had just recently made it possible for some groups to pay staff a more sustainable salary. But even that relative stability is now gone. They have been left with no choice but to downsize and move out of offices. Staff have been laid off or put on unpaid leave. NGO leaders who have dedicated ten to twenty of their best years to this issue are now facing the prospect of leaving this field. Some feel that decades of work and effort may now abruptly end in failure.
At a time when North Korean people deserve more solidarity and support than ever, the community of activists working to mobilize and deliver that support is facing the worst crisis since the start of this movement in the 1990s.
Key NGOs in Crisis
Urgent Support is Needed
Our shared vision is bold. It not only deserves but will require a strong ecosystem of NGOs working together for the rights and freedoms of 26 million North Korean people.
You’ve stood with the North Korean people, and with us, and for that we’re deeply grateful. So we’re asking for your help. We have an opportunity to protect the progress we have made together on this issue, and to help save the most critical programs of these organizations.
Will you join us by making a donation today to ensure that this small community of dedicated organizations can continue their life-changing work?
Give Now
Your donation could mean that a highly dedicated and skilled activist is not forced to look for other work. It could mean that a project inside North Korea, where the groundwork has already been laid, can be executed and finished. At this time of crisis, your donation will have an outsized impact. It is far more cost effective and efficient to preserve this work than to have to rebuild from scratch.
Thank you for giving what you can. The future of this movement depends on it.
