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.
The DMZ and North Korea
What Is the DMZ?
The Korean Demilitarized Zone (DMZ) is a strip of land running across the Korean Peninsula that serves as a buffer zone between North Korea and South Korea. The DMZ is a de facto border barrier and divides the Korean Peninsula approximately in half. It roughly follows latitude 38°N (the 38th parallel), the original demarcation line between North Korea and South Korea at the end of World War II. The Demilitarized Zone incorporates territory on both sides of the cease-fire line as it existed at the end of the Korean War (1950-1953), and was created by pulling back the respective forces 1.2 miles along each side of the line.
Upon the creation of the Democratic People's Republic of Korea (DPRK, also known as North Korea) and the Republic of Korea (ROK, or South Korea) in 1948, the DMZ became a de facto international border and one of the tensest fronts in the Cold War. The DMZ is about 160 miles long and approximately 2.5 miles wide. The truce that ended hostilities was signed here in 1953, but, as an official peace treaty was never agreed to, the two sides have still officially been at war for over sixty years. There are no troops in the DMZ itself, although both sides of the 2.5-mile strip of land separating the Koreas are the most heavily armed in the world.
A Brief History of the DMZ
Even as North Korea and South Korea marched together in a show of political solidarity at the opening ceremony of the 2018 Winter Olympic Games in Pyeongchang, and a newly combined Korean women's hockey team competed as one nation, there remains one unmistakable reminder of the chasm between the two nations. The DMZ was established in 1953 as part of the Korean Armistice Agreement between the United Nations, North Korea, and China to end the Korean War. In essence, it is a line in the sand that extends the entire 160-mile length of the Korean Peninsula, passing just about 50 miles from the Olympic village in Pyeongchang.
The 38th parallel north was the original boundary between the United States and the Soviet Union’s briefly held administration areas of Korea at the end of World War II. Both the North and South remained dependent on their sponsor states from 1948 to the outbreak of the Korean War. This conflict, which claimed over three million lives and divided the Korean Peninsula along ideological lines, started on June 25th, 1950, with a full-front DPRK invasion across the 38th parallel, and ended in 1953 after international intervention pushed the front of the war back to near the 38th parallel.
The Armistice Agreement for the Restoration of the South Korean State was signed on July 27th, 1953, and resulted in the creation of the DMZ as each side agreed to move their troops 1.2 miles back from the front line, establishing a 2.5-mile wide buffer zone. The Military Demarcation Line (DML) goes through the center of the DMZ and indicates where the front was when the agreement was signed. Owing to this theoretical stalemate and genuine hostility between North and South Korea, large numbers of troops are still stationed along both sides of the buffer zone. Each side holds constant guard against potential aggression from the other side, even 68 years after its establishment. The armistice agreement clearly explains the number of military personnel and what kind of weapons are allowed in the DMZ.
DMZ as a Cultural Site
Borders are usually geopolitical boundaries that mark the legal limits of a nation's sovereignty, and are often of interest to tourists for the meeting of cultures that occur therein, rather than for their divisive functions. The DMZ acts as a unique cultural site for the two Koreas, and this is seen as an attraction for tourists to the region. They recognize borderlands as symbolic cultural landscapes loaded with iconic sites and attractions that reflect the public memory. This memory is often focused on the past, ongoing wars, or territorial conflicts that have formed the border.
Tourism can act as a force of peace, a mechanism that promotes empathy and supports reconciliation processes between nations. In addition to fostering cultural exchange, research suggests that countries with open and sustainable tourism industries enjoy higher levels of peace, economic prosperity, and resilience. However, the highly regulated movement of Korean nationals on both sides of the DMZ usually limits the peace-building opportunities that are traditionally associated with an exchange of culture. This strict control of the border along with the careful curation of museums and war memorials has allowed each side to write its own version of history.
In the area, there are three small conference buildings administered by the United Nations in the Joint Security Area, all painted the international organization's signature blue, while North Korea controls three others. On the North side, a building called Panmon Hall looms, while on the South stands Freedom House, which hosts Red Cross and visitor activities. The Freedom House was intended to be a meeting area for separated families from both countries, but the North declined, fearing that its citizens might defect.
The Security Status at the DMZ
The border between North and South Korea is one of the most heavily guarded stretches of land in the world. The DMZ, littered with scores of mines and barbed-wire fences, is nightmarishly difficult to cross, except the Joint Security Area (JSA). JSA is a special buffer zone inside what is known as the "truce village" of Panmunjom, about 35 miles north of Seoul. Every year, hundreds of thousands of people usually visit the JSA for a chance to see North Korean soldiers standing at attention just dozens of feet away and to officially step into North Korean territory inside a United Nations administered conference room that literally straddles the military border.
A visit there feels like a military theater, with the stern warnings from the South Korean soldiers under United Nations (UN) command not to make gestures at their counterparts. Since demarcation, the DMZ has had numerous cases of incidents and incursions by both sides, although the North Korean government typically never acknowledges direct responsibility for any of these incidents. This can be a highly risky place if mutual respect is not maintained from both sides.
Human Rights and Repression in North Korea
North Korea is one of the world's most repressive states. The government restricts all civil and political liberties for its citizens, including freedom of expression, assembly, association, and religion. It prohibits all organized political opposition, independent media, civil society, and trade unions. The government routinely uses arbitrary arrest and punishment of crimes, torture in custody, forced labor, and executions to maintain fear and control across the country. Besides the DMZ, North Korea is a highly controlled country where human rights are ignored.
The international community has continued to press the North Korean government to expand its engagement with United Nations human rights mechanisms, including action on findings of the UN Commission of Inquiry (COI). The COI report shows that the country has committed crimes against humanity including extermination, murder, enslavement, imprisonment, rape, sexual violence, forced abortion, and other heinous crimes. The citizens of North Korea require a lot of help and support from the international community in order to attain a better life.
The North Korean people face a brutal and repressive government that isolates them from the world and denies their most basic human rights, but you can help to create change. At Liberty in North Korea (LiNK), we help North Korean refugees escape through a 3,000-mile secret rescue route and empower North Koreans who have reached freedom to be changemakers, advocates, and leaders on this issue. You can help make a difference in the lives of North Korean citizens by learning more about our organization, raising funds, advocating for the people of North Korea, starting a rescue team, or making a donation today!
