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.
Interview with Charles - North Korean Student at Coding Dojo
Charles escaped from North Korea and made the dangerous journey to safety without the help of a rescue. He resettled to the US in 2012, completing high school and soon after taking the opportunity to participate in a rigorous coding bootcamp through a partner of Liberty in North Korea, Coding Dojo. Charles is now attending community college and pursuing his own coding project. We had a chance to meet with Charles this summer to learn more about his life in North Korea and his new coding passion. Read the interview is below. Charles is also fundraising for rescues with us!
LiNK: Why did you choose to resettle to the US?
Charles: I was born between a North Korean mom and a Chinese dad, which put me in a difficult situation. I wasn’t accepted into South Korea because my Dad is Chinese, even though I had proof of having been captured once in China for being a North Korean refugee. So I applied for refugee status through the United Nations and resettled in the US.
LiNK: You attended Coding Dojo’s coding Bootcamp earlier this year - so cool! Between coding language, English, and borrowed words in Korean, which was the hardest language to learn?
Charles: Coding was hard. You have to know the terms while learning the specific coding language, so that was a challenge. I’m still teaching myself the parts of coding that I find difficult. As for borrowed words in Korean, I didn’t know those existed at all until I started to talk to more Koreans in the US. Borrowed words frequently came up, and I would have to ask people around me to explain the words that I couldn’t understand; part of the challenge was how the same word is pronounced differently in Korean and in English. Shortened words in Korean were tough to learn as well.
LiNK: What’s your favorite thing about programming?
Charles: My favorite thing about programming is I have finally discovered what I truly want to do with my life. I used to want to be a doctor one day, a cop the next day, and maybe a week later, I would want to join the army. Coding first became my hobby and thanks to Coding Dojo, it became something I want to make a career out of. It’s a lot of fun. But aside from that, I’ve also met good friends and instructors at Coding Dojo. I think it’s safe to say coding made me pull a 180 in life. I’m set on computers for now.
LiNK: Can you tell us about a project you’ve been working on?
Charles: Sure. I’ve been working on a project using MEAN stack to make an auction platform for ideas. Users can present ideas, sell ideas, buy ideas… You could say that it’s similar to Ebay in a way, but I think at this stage it’s important to emulate what other people have made to explore and learn about various successful models rather than trying to create something entirely new and different. With the current version, users can upload an idea onto the platform, but there’s been glitches in the idea being transferred to the the auction page. So that’s something I’ve been struggling with, but I think I’m going to finish it pretty soon.
LiNK: How do you get into computer programming as a career in North Korea?
Charles: I’m not sure because I don’t have any friends who went to university, although I do have a relative who was able to go. Most students who go to university come from wealthy families or are people who have been able to make a good amount of money from market activities, and they might find that kind of job. But in North Korea a lot of occupations are passed down from your parents, for example if you’re a politician then your children will also likely become politicians.
LiNK: After coding, what do you like to do in your free time?
Charles: I’m usually at the gym working out. If it’s breezy and not too hot outside, I go to the park and listen to music. You can find me sitting on a bench with my headphones on.
LiNK: What kinds of things do you think about when you’re at a park listening to your music?
Charles: Usually I think about memories from North Korea. When I’m busy my mind is preoccupied with work, but when I have more time on my hands I often think back on my life in North Korea -- both the good days and the hungry days.
LiNK: Can you share one of your favorite memories with us?
Charles: Sure. I had a lot of friends back in North Korea, and we were always outdoors in nature. I lived near Daedong River, so every Sunday, five to six friends of mine and I would have cookouts near the river. We would get rice, a pot, and some firewood to make porridge. Would I do that here? Probably not. I could try, but I think being with my friends was what made it memorable and special. Even when we were hungry, we were hungry together.
LiNK: That sounds really nice. Have you found any foods that you like to eat here?
Charles: Subway! I love sandwiches. My go-to Korean food is Kimchijiggae. I also like Vietnamese noodles — Pho.
LiNK: Cool. What are three things you want to accomplish by the end of this year?
Charles: First is completing my programming project, the Idea Auction project that I mentioned earlier. Second is getting accepted into the community college that I’m applying to. And third would be keeping in good health!
LiNK: Those are some solid goals. You drive Uber sometimes, right? When you’re talking with riders, do you share that you’re from North Korea?
Charles: Well, not a lot of people in the US are aware about North Korea. They say, “Where are you from?” So I would say, “I’m from North Korea,” and they go, “How is it there?” Haha. So I tell them that North Korea is the counterpart of South Korea. The funny thing is that they might not be familiar with North Korea, but they know what I’m talking about when I say the name Kim Jong Un. Then, they don’t believe me and say it’s impossible to escape. When I share my story, they’re very surprised. A lot of my customers stick around to listen to my story even after we’ve arrived at the destination. Even if it’s late at night, people don’t get out of my car until I finish my story.
