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.
Meet Charles - A North Korean Living in the United States
Charles escaped from North Korea and made the dangerous journey through China without the help of a rescue network. We met Charles after he resettled in the United States and were able to connect him with Coding Dojo, a coding boot camp and Liberty in North Korea partner, that generously provides free programming education to North Koreans. We've become great friends with Charles and recently he was excited to share his story with you.
My name is Charles. I was born on October 1st, 1994. I grew up without the love of my parents because my father left us when I was five years old and my mother passed away six years later from starvation. For years, I had to figure out how to live alone. I begged for food from strangers on the street, battling starvation and freezing weather. One day my stepbrother came to find me and take me in. I lived with him for a while and when I was 14 years old he brought me to my father in China. Life was so much better in China and I remember thinking there would be no more starvation and no more begging for a place to sleep.
Yet nine months later, the Chinese police came to our house and arrested my family.
We begged the Chinese police to let us go but they wouldn’t listen. Instead, we were kept in a Chinese jail for two weeks. It was when I was sent back to North Korea after this two week period that I realized that no happiness existed any longer -- the happiness that I had felt had been only temporary. The North Korean government questioned me, abused me, and forced me to work as punishment even though I was only sixteen.
Each meal consisted of a single piece of corn.
After eight months, I was finally released. I was just skin and bones - I had almost starved to death.
Without any money, I knew I had to find work. I began working in a coal mine which allowed me to buy rice to eat. Work in the coal mine was very risky -- I saw people lose their arms and legs as they were smashed under the rocks. I was afraid and I couldn’t help thinking that I would soon lose an arm or a leg myself. After working in the mine for a year, I realized I couldn’t stay in North Korea any longer. I knew how long and hard escaping North Korea would be without money or food, and I understood that if I was caught I could be killed. But I wanted to take these risks instead of continue working at the coal mine. I knew I could leave - I just needed to be brave.
My journey began when I boarded a train to take me closer to the border of China and North Korea. I was riding illegally and though I managed to hide during most of the ride I was at one point caught by the train security without my birth certificate. They locked me in a room with plans to kick me off at the next stop. I felt every piece of hope inside of me break because I knew they would send me to jail. Then, as the train slowed, I realized that I might be able to escape through the window.
With my heart pounding in my throat I opened the window and jumped out.
Still, I had more to go. I walked for hours, illegally boarded a second train, and then, finally, I was at the border of China and North Korea.
I remember feeling excitement and happiness when I reached the border, but I also felt worry because I knew I had to cross the Tumen River. The land surrounding the river had constant security and if I was caught I would be shot. I hid in tall grass for six hours, waiting for darkness. Finally, I took a deep breath and stepped into the water. I was halfway across when the river picked up. I almost fell and in my fear I let out a scream before I could catch myself.
Suddenly, I felt a light on my head. A border guard screamed, “Come back here or we'll shoot you.”
I was terrified, and I thought I would never make it because the current kept pulling me under, but I just kept swimming. At last, I made it to the river’s shore.
My journey did not end when I got to China. I traveled by foot, van, bus, motorcycle, and boat. My shoes fell apart and my feet bruised and bled. I went for days without food and water and there were times when I wanted to give up. I cried many days until I couldn’t cry anymore because I was too dehydrated. When I made it to my father’s house, I expected him to welcome me, but he beat me and asked me why I had come to him. I saw that he did not want me. He asked me to leave and he sent me away with his first wife. Together, his wife and I escaped the eyes of many police officers and finally made it to Southeast Asia where I was safe. For months I stayed in a Korean embassy refugee camp and then an international refugee camp where I was finally helped to come to the United States.
In those months and years when I was struggling to survive, my dreams and hopes for a better life kept me going.
I told myself every day that I could make it better -- that one day, somehow, I would change my life, and I kept dreaming about this life. Eventually, I realized that I couldn’t just wait for this dream of a better life to come true -- I had to make it happen.
_____Charles has shared his incredible story at many events to help grow the movement of support for the North Korean people. We are honored to be able to work with him and we are grateful to you for making it all possible! Thank you.
