Donju now run many of North Korea’s state grain shops

North Korean authorities have established state-run grain sales offices to stabilize food supplies and prices, but these offices are increasingly run by wealthy private merchants known as donju. Donju, formerly wealthy rice wholesalers, now procure and sell grain under the direction of the local people’s committee’s grain administration department.

While the offices remain officially state-controlled, the day-to-day operations of securing and selling grain fall to the donju. The involvement of donju has modestly improved the quality of the grain sold. However, prices at the grain sales offices are now increasingly tracking market rates, leading North Korean people to perceive the shops as little different from private rice dealers.

Authorities brought in donju to address the state’s weak grain procurement capacity, as these wholesalers have built purchasing networks over years of trading. This arrangement locks in steady sales volume and allows authorities to maintain visibility into distribution volumes and price trends. Despite the state’s efforts to stabilize prices, North Korean people report that the grain sales offices often raise prices in step with the market, and some even raise prices before the market does.

The gap between prices at the sales offices and market prices has narrowed but remains present. North Korean people view the grain sales offices as places where private merchants sell rice rather than as official state supplies.