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.
Finally Free
I went to Southeast Asia to see where LiNK’s Field Team rescues North Korean refugees. Here’s what I found…
Refugees must cross terrain like this to reach safety in Southeast Asia
We’re on a dirt road weaving around potholes.
On one side, the rice reaches to the horizon. On the other, corn stretches higher than the van.It feels like rural Iowa, but hotter and with palm trees.
The van lurches along, swaying back and forth with the ruts in the road. We’ve been driving for five hours through dense jungle and villages so small that you’d miss them if you blinked. It’s starting to seem like we’re in the middle of nowhere.
We finally coast to a stop and LiNK’s Field Manager points to a steep ravine.
“We’re here,” she says.
“We’ve rescued North Korean refugees right here,” she continues.
For the next hour we stop every couple hundred yards. She points to a field or a patch of trees and recounts stories.Stories of screeching to a stop, sliding open the door, and pulling North Korean refugees into the van.Stories of refugees so dehydrated they barely have the words to ask for water.
Stories of people collapsing in exhaustion, caked in mud and peppered with bruises from the long trek through the jungle.“What do refugees do once they’re in the van?” I ask.“Some start crying, the tears stream down their cheeks. They’re so overwhelmed that they finally made it. Others flash smiles in triumph, soaking in every second.”
I realize we’re not on just any dirt road.
This road meanders along the border. You can’t see the line but throw a stone in a certain direction and it’s likely to land in another country.For North Korean refugees this border means everything. Cross it, and they’re safe. The North Korean regime cannot have them arrested and forcibly returned.The danger is finally gone — evaporated in the sweltering heat and suffocating humidity of Southeast Asia.
For the first time in their entire lives: they are free.
It’s a week later and I’m sitting in an air-conditioned coffee shop that sells overpriced lattes.
I’m back in South Korea to interview a North Korean woman who reached freedom through LiNK’s rescue network.It took her four tries to make it to South Korea.She was arrested twice at the North Korean border and once in China. Each time the punishments seemed unimaginable, but they’re terrifyingly common.She recounts the horrific torture she endured for trying to escape. The way they slammed her head into a nail on the wall. The torment of witnessing cellmates whither away from starvation. The heartbreak of watching her 5-year old daughter being beaten in front of her.I’m trying hard to collect the facts. But hers is one of those stories that hollows you out. Leaving you nauseous and numb.The conversation dwindles. I can see the toll that sharing these stories are having. Her shoulders start to slump. She barely looks up to make eye contact anymore.I pull out my phone and show her a video. Her eyes flash with life.
20 seconds pass and she’s still glued to the phone.
It’s a video of that dirt road. And the exact place where she finally reached freedom. There are corn stalks on the left and a small farmhouse hidden behind palms leaves on the right.“Do you remember this place?” I ask.“How could I ever forget it?” she says without looking up.She’s smiling for the first time all afternoon.
