Home
/
RELIGION & LIBERTY ONLINE
/
North Korean regime would ‘collapse’ without free markets
North Korean regime would ‘collapse’ without free markets
Aug 14, 2026 5:41 AM

Screenshot of Google Earth Satellite image of Chaeha Market in Sinuiju. Screenshot taken 11/23/2016.

“If North Korea shuts downs markets, it will collapse too,” defector Cha Ri-hyuk explains. Satellite images and testimonies from those who have fled the oppressive regime of Kim Jong-un are demonstrating the power of markets. A new report from Hyung-Jin Kim looks at this phenomenon in the Democratic People’s Republic of North Korea.

These markets, jangamadangs, are primarily supplied with goods smuggled from China or South Korea. There are hundreds of markets where people can purchase anything from skinny jeans to locally made food. Although South Korean products are illegal, the demand for clothes and entertainment from South Korea is especially high. One defector, Lee O.P., says that despite charging high prices, she would still sell out of South Korean products. She sold clothes in the market until she was able to defect to South Korea.

The regime has not just accepted that these markets are the new normal, but likely relies on them:

North Korea has tolerated — and taxed — some market activities since the country’s state rationing systems crumbled amid an economic crisis and famine that killed an estimated hundreds of thousands in the mid-1990s. The economic boost the markets provide has helped leader Kim Jong Un keep a grip on power and further his nuclear ambitions, leaving the North’s harsh political system and alleged human rights abuses largely untouched.

But some political analysts note that market activities are gradually infusing North Koreans with new ways of thinking that eventually could loosen the authoritarian government’s hold over its 24 million people.

“It’s like potential forces which can fundamentally shake the North’s systems are growing,” said Lim Eul Chul, a North Korea expert at South Korea’s Kyungnam University. [emphasis added]

It’s unclear whether these markets could lead to the fall of the regime or have helped prop it up. What is beyond doubt is that without these markets, North Koreans would struggle to provide for their families or themselves. After the horrific famine and subsequent economic crisis, the state rationing system fell apart. Although most North Koreans had no interest in going against the regime, they had to eat and thus the markets came about. Defectors who spoke to the AP have noted that the public rationing systems still don’t operate. From Kim:

The markets have given North Koreans a taste of foreign culture, eroded their dependence upon a government that no longer feeds them and opened up a new gap between rich and poor. There is little to suggest that the country’s authoritarian rule has weakened, but at the same time, experts say, the North must take care to avoid economic policies that harm the markets. For instance, the 2009 botched currency reform reportedly triggered widespread plaints that led to the execution of a top Workers’ Party official.

There are risks in the business, whether authorities are hunting for contraband, cracking down on foreign currency or mitting graft. Lee O.P. says she decided to flee after police officers confiscated her whole savings for unauthorized phone calls with her daughter who already defected to South Korea.

According to a 2011 survey from Haggard and Noland reported by BBC News, 69 percent of respondents made over half of their e from market activities rather than through government assigned employment or through state enterprise.

Women are especially benefiting from these markets. I recently spoke with Suzanne Scholte, Chairwoman of the North Korean Freedom Coalition. She lamented that women of North Korea are “second class, even third class citizens … and are treated like dogs.” North Koreans enjoy zero human rights, but women are treated especially poorly. They are not seen as equals in any sense of the word. Most vendors and buyers in these markets are women. They can forge their own paths by purchasing the goods they want or making their own money selling goods.

Read Hyung-Jin Kim’s “Defectors: N. Korea would fall without capitalistic markets” at the Washington Post. Visit Religion & Liberty in early 2017 for Scholte’s full interview about North Korea and human rights abuses there.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Understanding Trump: The Deal-Maker as Artist
[Note: This is the first in an occasional series evaluating the remaining presidential candidates and their views on economics and liberty.] In the history of American politics, there has never been a candidate quite like Donald Trump. He is an Ivy League-educated New York billionaire appealing to populists across the country. He is a crony capitalist who loves bureaucracy and yet has convinced voters that he is the anti-Establishment candidate. He is profoundly ignorant about economics and openly hostile to...
Seeing the Creator Through Coffee
“Good work…does not disassociate life and work, or pleasure and work, or love and work.” These words, written by Wendell Berry, pulse throughout the work of Laremy De Vries, owner and chef of The Fruited Plain Café, a sandwich and coffee shop in Sioux Center, Iowa. For De Vries, our work unites general revelation with special revelation, yielding an opportunity for “valuing the created world not only insofar as it belongs to God in a sphere sovereignty sense, but also...
5 Facts About the National Day of Prayer
Today is the National Day of Prayer, an annual day of observance celebrated by Americans of various faiths. Here are five facts you should know about the day when people are asked “to turn to God in prayer and meditation.” 1. The National Day of Prayer is an annual observance held on the first Thursday of May, inviting people of all faiths to pray for the nation. It was created in 1952 by a joint resolution of the United States...
How to Determine if Nation is Rich or Poor
We know that some countries around the world are rich (e.g., the United State) and others are, relatively speaking, poor (such as Mexico). But not all poor countries are equally poor. Mexico, for instance, is pared to some African countries. Knowing how to measure such differences can help us better grasp the relative well-being of people around the globe. In this video byMarginal Revolution University, economist Alex Tabarrok provides a simple tool paring relative wealth between nations. ...
Fair Trade, Microfinance, Orphans, and Social Entrepreneurship
Poverty, Inc. co-producer Mark R. Weber shares mitment to fort as a necessary function of growth at the Jubilee Professional conference in Pittsburgh, 2016. Poverty, Inc. is a critically acclaimed documentary that has earned over 50 international film festival honors and the $100,000 Templeton Freedom Award. It has been endorsed across the political spectrum, from Michael Moore to Russ Roberts, playing in over 100 universities including Harvard, MIT, NYU, Cornell, Stanford, Yale, and Northwestern. Learn more at povertyinc.org and /povertyinc....
The Despotic Reign of Fear
Yesterday was both Star Wars Day (May the Fourth) and the day that Donald Trump became the presumptive presidential nominee for the Republican party. I reflected on the confluence of these two phenomena in a short essay on what Mr. Trump might learn from Emperor Palpatine. It is not well-known, perhaps, but Palpatine was instrumental in creating the so-called Book of Sith, which includes a treatise by him on “Absolute Power.” I draw a couple of lessons for Mr. Trump...
Where Billionaire Crony Capitalists Live
It’s never easy ing a billionaire, but the path to achieving a 10-figure level of wealth is smoother when you have the government as a business partner. Crony capitalism is a general term for the range of activities in which particular individuals or businesses in a market economy receive government-granted privileges over their customers petitors. Certain industries (like casinos and real estate) and some nations (Russia, the Philippines) are more prone to cronyism than others. So if you want to...
6 Quotes: Friedrich Hayek on economics and freedom
Yesterday was the 116th birthday of the late Austrian and British economist Friedrich Hayek. Throughout his life the Nobel-winning philosopher defended civil liberties and political freedom and warned against the Keynesian welfare state and of totalitarian socialism. In honor of his birthday, here are six key quotes from his writings: On Faith in Freedom: Freedom necessarily means that many things will be done which we do not like. Our faith in freedom does not rest on the foreseeable results in...
A Great and Mysterious Collaboration: How Trade Turns Work Into Fellowship
“The fruit of our labor is fellowship. munity. It’s relationship.” Global trade has suddenly emerged as a hot conversationin the current election cycle, with candidates likeDonald Trump and Bernie Sanders leading the charge toward severe protectionism, while the others quietly shrug and nod along accordingly. Voters of all ideological stripes areresponding with fervor, calling for more trade barriers and increased manipulation of prices and wages, hoping to insulate the American economy from our global neighbors and “keep what’s ours.” Such...
Unemployment as Economic-Spiritual Indicator — April 2016 Report
Series Note: Jobs are one of the most important aspects of a morally functioning economy. They help us serve the needs of our neighbors and lead to human flourishing both for the individual and munities. Conversely, not having a job can adversely affect spiritual and psychological well-being of individuals and families. Because unemployment is a spiritual problem, Christians in America need to understand and be aware of the monthly data on employment. Each month highlight the latest numbers we need...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved