Payments in Kind Return to Northern Industry

Food distribution to mining
concerns in northerly provinces of North Korea restarted this month after a lengthy hiatus, Daily NK has learned. A sources in Yangkang Province told Daily NK on the 21st, “Miners who had grown weary at their food situation have now received distribution and are over the worst of the crisis.”

A second source in North Hamkyung Province said, “Because even family members
of workers at Musan Mine received rations in addition to the workers
themselves, [Kim Jung Eun] is getting surprisingly good reviews.”

The source in Yangkang Province added, “Rations to mines in Hyesan
started again in July,” going on, “I heard they are paying out the increased wages
in kind.”

The state drastically increased the wages of workers in major heavy
industrial plants and mines last September as part of the “June 28th Policy”. At the time, monthly wages saw a big jump from 3000 KPW to 300,000 KPW,
with much of it paid in kind, partly to try and offset possible inflationary
pressures. The policy was a reflection of the goal of earning greater amounts
of foreign currency through productivity gains.

But this distribution in kind stopped between March and June this year,
according to sources. The fact that distribution resumed in July implies that the coal trade, which was stifled following the execution of Jang Song Taek, is now back on track.

“Immediately after Jang’s execution at the end of last year there was no
great change in coal export volumes, but then it slowed a bit in spring. It’s
because of the need to replace the people who had been running the coal
industry,” the source asserted. “With distribution starting again, production in the mines is
showing signs of revitalization.”

Apparently, the veritable flood of food distribution has people sighing
with relief, and seeking out the best ways to capitalize on the income. Some
households are selling food in the market in order to buy other goods.

Meanwhile, some locals have been speculating that the recent rations were intended to incentivize loyalty
for the 20th anniversary commemoration of Kim Il Sung’s death
and attendant mourning period from July 1st to 10th.

“Usually when July comes there is no food but people are ordered to
participate in the mourning period, so they complain that the state isn’t giving anything yet it takes plenty. But since the distribution, those complaints have died down,” explained the source.

“The state promised miners ‘higher wages and consistent rations’, and this was met with eagerness and approval, but the failure to uphold that promise
this year has led to a lot of complaints,” he added.

The mine in Musan produces most of North Korea’s copper, and is believed
to hold large reserves of the metal. In the 80s, the North underwent major
construction to build a railway and transportation pipe from the mine area to the port
at Chongjin. Recently, additional tracks connecting Nanping in the Yanbian region of China to
Helong have opened.