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.
How North Korean People are Changing North Korea
Sometimes this issue seems hopeless. But we believe that all North Koreans can achieve their freedom in our lifetime. Here’s why.
For decades, the North Korean people have been deprived of their basic human rights and potential. The regime has maintained control through a system of imposed isolation, relentless indoctrination, and brutal repression, creating one of the most closed societies in the world. The result is an all-encompassing enforced poverty, including material, physiological, social, informational, artistic, and spiritual deprivations.
In 2014, the United Nations Commission of Inquiry on Human Rights in North Korea concluded: “The gravity, scale and nature of these violations reveal a state that does not have any parallel in the contemporary world.”
In recent years, the pandemic has triggered another increase in isolation, hardship and repression.
Despite these tremendous challenges, the North Korean people have made significant progress toward their own freedom. In the 1990s, North Korea’s socialist economy collapsed, triggering a devastating famine and leaving the people to fend for themselves. Bottom-up market activity is changing North Korea and forcing the gradual opening up of North Korean society.
> The History of North Korea in under 3 minutes
Marketization and Emerging Entrepreneurs
Once the people realized they could no longer rely on the government, they abandoned their defunct work units and turned to private market activities. From selling home cooked meals to running extensive trade businesses, North Koreans have become incredibly creative and resourceful to survive. The markets central to these activities are known as the “Jangmadang,” and to this day, North Korean refugees regularly report that life would be impossible without them.
> The Jangmadang Generation
The famine forced people at all levels of society to find alternate ways to survive. Many government officials seized opportunities for camouflaged capitalism to enrich themselves personally. Even security officials accommodated the markets, accepting bribes to turn the other way and allow access to the Chinese border for trade. This corrupt state apparatus has further degraded the integrity and power of North Korean leaders.
Foreign Media & Info
The growing market economy has also created opportunities for foreign media and information to proliferate in North Korea.
First, the movement of people has significantly increased since the 1990s. Hundreds of thousands of North Koreans have now been outside the country for legal or illegal work and trade, in addition to refugees who were caught in China and forcibly repatriated. Observations from overseas are commonly shared through word of mouth and quickly spread through communities.
Additionally, new information technologies are increasingly available through the markets, making it easier to share and consume illegal foreign media. USB thumb-drives, SD and MicroSD cards, mobile phones, laptops and small portable media players are often loaded with foreign films, TV shows, and music that offer a glimpse of life outside.
> How Kpop is Challenging the Regime
Individual Agency & Independence
Since the collapse of the 1990s, the relationship between the North Korean people and the regime has been fundamentally changed. The people’s increasing economic autonomy has challenged the government’s centralized power and systems. Simultaneously, access to foreign media and awareness of life outside the country has eroded the legitimacy of the regime’s propaganda. The North Korean people have found opportunities to explore their potential, empowered to think and act independently of the regime.
North Korean Defectors
As North Koreans gain both physical and psychological independence from the regime, some will risk their lives to escape and experience freedom. Since crossing the heavily fortified demilitarized zone directly to South Korea is nearly impossible, many refugees go north into China while escaping North Korea.
North Korean defectors who successfully resettle become some of the most effective agents of change on this issue. Many maintain contact with their home communities through broker networks and smuggled Chinese phones. They send money back to their families along with first-hand accounts of the outside world, accelerating both market activity and the flow of information.
From the outside, North Korean refugees have the opportunity to share their stories on the international stage. Their personal accounts challenge the regime’s narrative of an unchanging and monolithic North Korea, instead highlighting the humanity and dynamism of the people. As they explore their potential in the free world, North Korean refugees increase the force of change through both internal and external influence.
> How A North Korean Defector Sends Money Back Home
Change from the Bottom-Up
While the situation in North Korea is changing, the government’s mastery in maintaining social control should not be underestimated. The regime’s response has ranged from crackdowns to tacit acceptance and reform. North Korean leader Kim Jong-un recognizes the trade-off between change and maintaining control, and has allowed limited marketization while cracking down on information flows.
Ultimately, however, the sources of change can only be managed, not eliminated. As the North Korean people learn more about their relative poverty and the reasons for it, pressure will build on the government for economic reform. The less the North Korean people fear the outside world, the less effective the government’s threat narrative will be, and the less justified their massive investment into nuclear weapons will seem.
The regime will either need to adapt to change and allow opening of the country, or ultimately face the consequences of increasingly dissatisfied people.
It is important to note that progress in North Korea is a fluctuating process, as it is anywhere else in the world. During the pandemic, there has been increased isolation, retrenchment, and a limited outflow of people. The situation at hand is dire, but we can still be optimistic about long-term outcomes and an overall upward trend towards progress.
Liberty in North Korea
Our staff from North Korea, South Korea, and around the world, with our diverse movement of supporters and volunteers, is committed to bringing freedom forward for all North Korean people.
We’re engaged at multiple touchpoints of change:
- Helping North Korean refugees reach safety
- Identifying and empowering North Korean agents of change
- Mobilizing international support for the North Korean people
- Working with North Korean defectors to develop content and technologies that increase the people’s access to information
Our theory of change recognizes that change in North Korea has already started, and it is being driven by the people. One day, all North Koreans will gain their freedom and take full authorship over their lives. When that day arrives, we will know that we were a part of helping North Koreans in this incredible story of resilience and human progress against all odds.
