Jangmadang: Marketization in North Korea
Birth of Jangmadang
The birth of Jangmadang (장마당), translated as “market grounds,” can be traced back to the North Korean famine, also known as the Arduous March (고난의 행군).
Following the collapse of the Soviet Union in the early 1990s, North Korea underwent a mass famine called the Arduous March from mid-to-late-1990s when North Koreans resorted to forming their own unofficial market in response to the failing rationing system and deepening economic difficulties in North Korea (KBS, 2019).
“The government strictly controlled the distribution of all food, doling out rations to city dwellers and people in the military. Farmers were given a share of their own crop instead” (Blakemore from History, 2018). North Korea allowed individuals to legally trade agricultural and livestock products produced through side businesses in the farmer’s market since 1958 (KBS, 2019), but the socialist economic system during the famine could not produce enough materials and resources to stop the rising hunger.
While words such as “hunger” were banned from all propaganda because they implied government failure, malnutrition was affecting people of all ages. Although the estimate of death during the Arduous March given by international organizations ranges from 1.5 million to 3 million, the data reported by North Korea is much lower than estimates made by international organizations (The Hankyoreh, 2010), so the data remains unclear. News and research in Korean and English also report different numbers as well.
Birth of Capitalism
The matter of survival was in their own hands as the nation’s rationing system caused even further economic difficulties. The market rapidly expanded beyond its legal space to combat economic paralysis and thus, people resorted to an illegal, empty space to seek solutions.
Both theoretically and legally, however, a market in which capitalist transactions are made was not allowed and unheard of in a socialist economic system under the North Korean regime.
Regardless, goods and necessities flowing through official and unofficial trade between North Korea and China have become a major source of distribution of marketplace.
In the end, international trade added a variety of goods to the market. The principle of accumulating capital and calculating values through continuous trade practices rapidly served as an enlightenment to the North Korean residents. Specialized markets and businesses aided in the distribution of scarce supplies throughout North Korea, making jangmadang the twin sister to capitalism.
What’s in the Market?
With Jangmadang as the center of North Korean markets, the consumption habits of North Koreans and the resources available in the market allow us to learn more about North Korea and its living conditions.
Jangmadang has been a beneficial factor in affecting the living conditions of North Koreans. The market, which used to sell only agricultural products, was expanded to a general market where various products including industrial products could be sold. Its existence has seen an increase of not only food intake, but also technology and entertainment consumptions as well (Choe, 2015).
One example derives from the entertainment aspect, in which North Koreans may gain access to smuggled USBs with external cinema from Jangmadang markets, like South Korean dramas. This is a benefit due to North Korean television only containing four different channels, which do not have many fictional broadcasts, like TV shows (Silver, 2020). Therefore, the introduction to having different forms of entertainment may improve the mental well-being of these individuals.
A study in Brazil showed that patients watching movies and TV shows have shown to reduce anxiety and depression tendencies (Morals, Moreira, & Winkelmann, 2020). One of many possible tactics in battling the mental health problems that many North Koreans experience, since the prevalence of depression ranges from 29% to 49% among North Korean defectors and refugees (Park, Lee, & Jun, 2018).
Overall, Jangmadang has expanded so great that 80 to 90 percent of North Korean residents sought out their daily necessities at markets (KBS, 2019).
“Many that were not available before in the country are displayed for purchase ranging from cosmetics, cellphones, TVs, and Cuckoo rice cookers to South Korean DVDs and Choco pies” (Choe, 2015). As expansive trade and smuggling allowed the availability of goods, South Korean media consumption drove demand for other goods made in capitalist nations as well (Schieber from the Washington Post, 2021).
At least, until the pandemic hit. As it has become really difficult to leave out the topic of the pandemic in these times, the topic of Jangmadang today would also be left unfinished without the mention of COVID-19.
Economy, COVID-19 & Disinfection Law
North Korea was one of the first countries to close its borders. The restriction on importing “unnecessary” goods to North Korea meant that the trade with its main trading partner, China, was also restricted. Since the closure of the Sino-Korean border due to the pandemic, North Korea’s economy has taken a huge blow. With the total China-DPRK trade dropping by 80.7% in 2020 (Yonhap News, 2021), the availability of resources has significantly dropped as well. “The consequences have been readily seen in the inflation of commodity prices. About two weeks after the lockdown, flour had risen by 47%, soybean oil by 68%, and sugar by 22%” (Daily NK, 2021).
With more than 60% of its export and over 95% of imports being transacted between North Korea and China, the economic paralysis in Jangmadang has affected not just the price of commodities, but the economic well-being of North Korean families as well.
According to the survey conducted by the Korean Association of North Korean Studies, organized by the Ministry of Unification, 48% of the 6000 defectors interviewed stated that they earned a living in the private sector of North Korea, referring to Jangmadang and other unofficial economic opportunities (Ahn from The Korea Herald, 2020).
With limited access to resources and decreased income due to COVID-19, the economic burden on families is immeasurable.
During the Supreme People’s Assembly meeting held on March 3rd, North Korea adopted the disinfection law, which plans to disinfect all imported goods that cross the North Korean border and to impose penalties upon violations (Yonhap News Agency, 2021). The disinfection law shows a possibility of resuming trade activities, although further details are needed for full observation.
While it may be easier to conclude that the rising issue of economic crisis shown in Jangmadang today is caused by external causes such as the novel coronavirus outbreak, the issue must be observed through a broader perspective. Of course, while COVID-19 has significantly impacted the current situation of Jangmadang today, the economic structure of North Korea must be focused on more.
Even before the pandemic, the United Nations proposed data gathered by the UN Food and Agriculture Organization with an estimation of, “around 10 million North Koreans suffering food shortages…” (UN News, 2019).
After all, when we discuss the topic of ‘human rights’, there is no human right more important than the right to life. Food, clothes, house, and support are what all humans must be guaranteed as the basic conditions to survive — to live. For the history of Arduous March to not repeat itself, we must carefully observe and address the reality of Jangmadang and the economic structure of North Korea.
Written by Lina Park (student) and Ken Truong (student) from Simon Fraser University, Hanvoice Chapter.
Bibliography
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