North Korean Defector Economist: How We Analyze North Korea Needs to Change
By: Maria Stella
Maria is a PhD student at the Department of Economics at Korea University, specializing in theoretical economics. Her primary area of interest is developing theoretical models of the North Korean economy. She’s been a participant of the LiNK’s English Language Program since 2022.
When I think about my past, I often feel a great sense of loss and sorrow for the people I left behind in North Korea. As a PhD student studying North Korean economics here in South Korea, I feel a strong desire to use my research to help improve the lives of North Korean people. In many ways, helping those I left behind also gives meaning to my own journey.
Whenever I watch the news or read academic papers on North Korea, I feel saddened by the way North Korean people are discussed and represented. Over time, I have come to believe that the way we analyze North Korea needs to change.
I believe there is a fundamental limitation in existing research on the North Korean economy, as much of it has traditional socialist planned economy analysis. Earlier studies have suggested that North Korea would either collapse or undergo a system transition as other socialist countries have done. However, after the breakdown of the Public Distribution System (PDS) in the mid-1990s and the emergence of the shadow economy (including through the Jangmadang—illegal markets), these approaches began to reveal their limitations.
As a result, the North Korean economy came to be understood not as a simple planned economy, but as a mixed economy in which state control and market activities coexist. However, these studies do not sufficiently explain why the North Korean regime allows marketization to persist at a certain level instead of completely suppressing it.
In order to explain the interaction between the government and ordinary North Korean citizens, who are the primary actors in Jangmadang activities, I divide the North Korean system into three groups: the regime, the elites, and ordinary citizens.
In particular, elites are important economic actors because they function as intermediaries between the regime and the people. My argument is that this phenomenon can be better understood by analyzing how these three groups strategically interact with one another.
These three groups pursue their interests in different ways, and their goals also differ significantly. The leadership wants to continue dynastic rule and ensure stable succession, the elite seek to secure their positions and avoid political risks such as purges, and ordinary citizens primarily seek survival and improved living conditions.
The interests of these three groups sometimes conflict with one another and sometimes align. In my opinion, these three groups in North Korea are currently remaining in a state of equilibrium.
This equilibrium means that these three groups can achieve their maximum interests under the current conditions in North Korea. Precisely because of this equilibrium, North Korea has been able to maintain both regime stability and limited marketization simultaneously.
That is why I believe we must identify what kind of shocks could cause this equilibrium to collapse. If such a change were to occur, it could become a new turning point for North Korea.
A new turning point for North Korea could lead the country toward a new political and economic order. The important thing is that we must identify what kinds of shocks could trigger such a transformation.
I hope for a North Korea that has changed—a place where its people can live freely. For me, North Korea is not just a state; it is my hometown, where I was born and raised, and where my family still lives. This is precisely why I am committed to a different approach to the North Korean issue—because my only goal is to see genuine change in North Korea, and I truly want to help bring about that change.
I want my article to inspire you to see something different the next time you watch the news or media coverage about North Korea. The next time you come across a piece of media about North Korea, I hope you take a moment to think about the real North Korean people. And perhaps you may also reflect on this article and consider what kinds of shocks could transform the current equilibrium of North Korea.
I hope you will join me on this journey.
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Maria is a participant of the LiNK English Language Program (LELP), which serves to not only help North Korean defectors build confidence and skills in English, but develop their capacity as advocates for this issue. To that end, we partnered with select LELP “columnists” to write and polish personal essays through multiple rounds of external feedback and revision. Our goal is to have more North Koreans share their stories directly and lead efforts to change the narrative.
We believe the North Korean people can achieve their liberty in our lifetime.
Opportunities like LELP invest in the people building that future now. Help more North Koreans find their voice, reach their goals, and lead change on this issue.
Lunar New Year in North Korea | What is Seollal (설날)?
North Korea has several major holidays, the most prominent being centered around the birthdays of Kim Il-Sung and Kim Jong-il. But there are some holidays that predate the regime, and continue to be celebrated in both North Korea and South Korea.
Seollal (설날) is one of these traditionally significant days. Known more broadly as Lunar New Year, it marks the first day of the lunar calendar and is observed in many Asian cultures. While January 1st marks New Year’s Day on the Gregorian calendar used by many western countries, the exact date of Lunar New Year differs every year. It typically falls at the end of January or beginning of February, and is celebrated over a period of three days.
Seollal in South Korea
In South Korea, Seollal is a time for families to gather and honor their ancestors. With people across the nation traveling back home, roads are packed and train, bus, and plane tickets are all booked months in advance.
Long hours are spent preparing traditional foods like tteokguk (떡국), or rice cake soup, and jeon (전), a savory pancake-like dish usually made with green onions. The act of eating tteokguk symbolizes turning one year older in Korean, and is believed to bring good luck and health for the year ahead.
Food is also an important component of Charye (차례), a memorial service to honor one’s ancestors. Led by the family’s eldest son, an assortment of dishes are set out on a table as an expression of gratitude, and rites are performed for the last four generations of one’s ancestors.
Another well known Seollal tradition is Sebae (세배). Younger members of the family, often while wearing traditional hanboks (한복), do a deep bow to their elders with the greeting “새해 복 많이 받으세요,” which translates to “May you receive good fortune and blessings in the new year.” In return, elders share words of wisdom and sebaetdon (세뱃돈), new year’s money in a colorful envelope.
The rest of the holiday is usually spent exchanging stories, reflecting on the past year, and playing Korean traditional games like Yutnori (윷놀이), which involves four wooden sticks that are tossed like dice to move tokens around a board.
Seollal in North Korea
In North Korea, the celebration of Seollal is encouraged by the state to emphasize Korean folk traditions. Historical programs are broadcast on TV, and local authorities organize mandatory activities such as kite flying and spinning tops. North Koreans gather with loved ones over the highly anticipated three day rest from work.
But unlike in South Korea, January 1st is actually considered the more important holiday to celebrate the New Year. This is when North Koreans do Sebae. Instead of the South Korean greeting, it’s customary to say “새해를 축하합니다,” or “Congratulations on the new year.”
On New Year’s morning, it is compulsory for all North Koreans to visit statues or portraits of Kim Il-sung and Kim Jong-il. After that, respects must be paid to town leaders, particularly the person in charge of one’s unit, such as the company president or homeroom teacher. Finally, greetings are exchanged between in-laws and neighbors, and families gather for ancestral rites, sharing food, and other traditional festivities.
Another key difference between New Year’s celebrations in North and South Korea is that there is no widespread travel. The lack of freedom of movement inside the country means it is extremely difficult for North Koreans to go from one city to another for any reason. Any requested travel requires a specific stated purpose, proper identification, and documentation that must go through several levels of approval, including from the head of the neighborhood watch (inminban), local People’s Committee, local district office, and a relevant police officer. Permits for restricted areas, such as Pyongyang and the border regions, require more complex issuing processes.
Yet both New Year’s Day and Seollal in North Korea are still celebrations of life and community. Many North Korean refugees fondly remember the holiday, recalling not the state enforced displays of propaganda, but precious time spent with loved ones.
“I grew up with a lot of aunts and uncles and they all lived in the same area, so on Seollal…everyone would get together to make rice cakes, noodles, and dumplings. After making a lot of food, we’d play Yutnori and everyone would start squabbling. Then we’d find out everyone’s fortune. I miss it now.”
- Hannah, escaped from North Korea in 2015
On Seollal, North Koreans don’t do a separate bow because they have already greeted the New Year. Depending on the region, North Koreans enjoy a variety of dishes like tteokguk (떡국), manduguk (만두국), dwejigukbap (돼지국밥), songpyeon (송편), nokdujijim (녹두지짐), and noodles.
“North Korea is a very communal society, so everyone gets together on Lunar New Year. The adults would play card games and Yutnori, we’d eat delicious food, and spend time together until the sun went down. I would wake up especially early to visit the homes of the neighborhood elders and they’d share the food they made with me… Later in the afternoon, I’d go to my homeroom teacher’s house with all my friends, and we’d play there until late in the evening.”
- Yulseong, escaped from North Korea in 2017
All around the world, the New Year is a highly anticipated time of reflection, gratitude, and turning the page. It’s a universal experience, one that is shared with the North Korean people as well!
