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How A North Korean Defector Sends Money Back Home

July 22, 2022

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!

North Korean refugees can send money to their families back home


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.  

  1. 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. 
  2. The remittance broker in North Korea uses a smuggled Chinese phone to confirm receipt of the funds.
  3. 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.

How North Korean refugees send money back into the country


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.

North Koreans engaging in market activity and entrepreneurship. Photo credit: Eric Lafforgue.


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.

Resettled North Korean refugee, Geum Ju, living in South Korea as a florist

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

Jo Eun, resettled in South Korea



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. 

Yoon Ha's Story: Part 1 - Life in North Korea

September 12, 2024
Yoon Ha

Yoon Ha resettled to South Korea through LiNK’s network about a year ago. She recently shared her story with us. This is part one of three. Continue to part two.

When I was asked, “How was your life in North Korea?” for the first time, I just started crying because my life there was so hard. It was so hard.

When I was a little kid my mom left me, my younger sister, and my dad, because of our financial struggles. I felt so abandoned and unloved.

And even though I was young, I had to start working to contribute to my family’s finances. My sister and I would forage for plants in the mountains and riversides. We carried the herbs, roots, and pinecones on our backs, walking for three hours to get to the marketplace. We sold our stuff so we could get corn powder to eat. And then we would walk the three hours back to our house. It was very, very hard.

In my late teens my father passed away. I was devastated. After a few years of living with relatives, my sister and I moved back to live with our mom again. But we were still very poor. People would make fun of us for being so poor and not having a father around. I felt a lot of shame about my family and living situation.

When I was 22, my mom asked me to start living with a man much older than me to lessen the financial burden on my family. I didn’t like living with him at all.

I decided to leave my hometown to find a better life somewhere else. I walked for a few days to get to Hamhung, one of the biggest cities in North Korea, hoping I could find work there.

Yoon Ha

In the city, I did a lot of things to make money. I would sell gas lighters and secondhand vinyl. I had to do it secretly because it was illegal. And it never paid well--just enough to buy food. I was staying at homes, cheap inns, empty houses, and even sleeping on the streets and next to graves when I had to. Sometimes I got beaten by people from the city because they didn’t like that I was making money but wasn’t from there.

I worked there for many months, but I couldn’t save any money so I decided to go back to my mom’s place. My mom and my sister were still struggling, and having me back was a burden to them. So I left home again and walked to Pyongyang to find work. In North Korea you need a special permit to move to different cities, and I didn’t have one. I got caught and sent to jail for 10 days.

After I was released, I started walking to other cities again to find work. I knew I might get caught by the police again, but I couldn’t go home. I walked a lot. Walking was the only way I could travel to where I needed to go.

I made it to another town and found work crushing ore to extract gold. The work was illegal and we would do it secretly in people’s houses. In one of these houses, I got beat up and got kicked out. I didn’t do anything wrong; they just didn’t want to pay me. Even after that incident I continued to do the same work in other houses. For the first time in my life, I had made a decent amount of money--enough to buy 100 kg of corn.

I was so happy. I would be able to bring some money to my mom and sister so we could eat food for a while. I also missed my family, so I started heading home.

YoonHa_Blog_3

At a bus station on the way home, a woman and her daughters asked me to get water for them. They stole all of my money and ran away.

I couldn’t handle all the bad things that kept happening to me. It felt like my life was hopeless and pathetic. I went to a river near the bus station to commit suicide. But right when I was about to jump into the river, all of sudden a thought came over me.

“Why do I have to die? Why? I've not done anything wrong. I'm still only in my early 20s.” I made the decision to live and make the better life I wanted.

Instead of going home, I started walking again. I just kept going north. Even though I was so hungry, the hope for a better life drove me to keep walking.

After walking for days, I somehow arrived in Hyesan, a city on the border with China. I saw many people like me, who had been wandering around in search of food and work. I had travelled to many different parts of North Korea, and came to the conclusion that life was difficult everywhere in my country.

A couple in their 30s or 40s approached me and asked how old I was. I told them my age, 23. They asked if I wanted to go to China. They said I could have a better life there.

“A better life? Yeah, I would do anything to have a better life.”

So I decided to go to China with them. I was so focused on having a better life; I didn’t ask many questions. A few days later, in the darkness of night, we crossed the river into China.

Continue reading with part two.

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