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.
Walking Forward with Brightness | Joseph’s Story: Part 2
That semester, for the first time in my life, I received an academic award for excellence and made the dean’s list at school. I went on to graduate from high school and study political science at Bard College. After my undergraduate studies, I had the honor to work for former President George W. Bush, who had made it possible for me and other North Koreans to come to America as refugees. Over the years, he has became a personal role model and friend.
Today, I am pursuing a master's degree in Public Administration at the Kennedy School of Government at Harvard University. At Harvard, I’ve met people from all different walks of life. When I met students on government scholarships or born into generational wealth, I did not envy them because I have a dream that is bigger than me and bigger than my life.
But when I met a classmate from Ghana, it was the first time I felt envious. He said, "Kim, I’m learning so much here, and I can’t wait to take these skills and knowledge back home to improve my country after graduation."
I envied him for having a home he could return to. For having the opportunity to try, fail, fail again, and eventually make a difference in his homeland.
I, too, dream of the day when I can finally return to North Korea—when it is a place where every man, woman, and child is free to live with dignity, to learn about the world, and to shape their own identity - one that is not given or defined by the government.
In a free North Korea, I dream of returning to my home in Hoeryong—the last place we were a family together, to see if the pear tree my father had planted is still there.
In a free North Korea, I dream of teaching high school students in my hometown and caring for orphans. My students will attend Harvard University and be able to say, “I’m learning so much, and can’t wait to use these skills to improve my country.”
I know that my dreams might sound impossible, but being here in the US, sharing my story with you should have been impossible. You’re looking at someone who survived a famine, escaped North Korea in broad daylight; an elementary school drop out who is attending the best university in the world, and a former refugee who today serves on the board of the organization that helped him reach freedom.
Since its founding, LiNK has helped nearly 1,400 North Koreans escape to freedom. These aren’t just numbers—they are people like me. Individuals and families whose lives were transformed and whose future generations will only know what it means to live in freedom.
Thank you for standing with us, for your unwavering commitment to the protection, rescue and resettlement of North Korean refugees, and for investing in our future through programs that equip our community with skills and confidence to define our own success and contribute to the change we dream of for North Korea.
No organization has done more to partner, support, empower, and believe in the North Korean people than Liberty in North Korea. It is truly a special organization, and I don’t say this because I have to, now that I sit on the board. To do the work that we do requires an immense level of trust and respect, which begins from the moment North Korean people connect with LiNK and is evident through the actions of the staff, the wisdom of the board, the passion of student chapters, and the incredible commitment of our donors.
From afar, North Korea looks like a country as dark as the sea at night. But it is not a land of darkness, merely a land with darkness. There is suffering and hardship, but there is also unimaginable beauty, immeasurable resilience, and 25 million people who have to choose hope every day.
I know that the journey to freedom cannot be made alone. I am no longer a child. I am wiser today. But that doesn’t mean I have everything figured out. I choose to walk forward not because of the things I am certain about, but in spite of everything I am uncertain about. I choose to walk forward with brightness and hope—for my family, for my people, and for my homeland.
And I hope you will walk with me until finally, we can walk into a free North Korea together.
Read part 1 of Joseph’s story about his escape and arrival in the United States
In freedom, Joseph’s constant striving has led him down a path of extraordinary achievement. Yet in his mind, each opportunity was just the next best way for him to grow his capacity to work on this issue. To have him join the organization's Board of Directors as the first North Korea-born member is truly a full circle moment.
The North Korean people have the same brightness and potential as Joseph. Help make this kind of story possible for more of them.
