North Korea money-transfer brokers make a comeback amid bank distrust

Private money-transfer brokers are resuming operations in North Korea following a period of crackdown that aimed to steer people towards banks. The distrust in banks following the intensified crackdown is causing people to return to the informal networks, according to a source from Ryanggang province. Broker-assisted transfers are regaining popularity, connecting residents of Hyesan with others sending or receiving money inland.

The source stated, "For a while, the crackdown was so intense that people were very cautious about these deals. These days, more people are turning to private brokers again." Such brokers have historically facilitated commerce between North Korea's border areas and interior regions, charging a fee for payment relaying. They have also functioned as a key component of the country's informal financial system due to their role in foreign currency exchange.

North Korean authorities had previously encouraged bank usage and suppressed private brokers, aiming to bring funds into the formal financial system, which led to a significant reduction in broker activity. While the crackdown on private money-transfer brokers has eased, people remain wary of banks due to investigations and potential arrests.

Some individuals now opt for banks solely for necessity, according to the source. Both brokers and banks are now perceived as risky, prompting some merchants to turn to personal courier transfers. These transfers involve hiring drivers or trusted individuals to physically carry cash. The courier method lacks a paper trail but carries its own inconveniences and risks.

Personal courier transfers take time, and there's always a chance the money could be lost, diverted, or confiscated. Due to distrust in both brokers and banks, people are once again relying on private money-transfer brokers. Despite the less intense enforcement, brokers are still moving money, using coded language on the phone to avoid detection.