60% of North Korean Workers Receive No Pay Despite Attending Work... Official Economic Activity Participation Rate at Historic Low of 71.6%

"Impact of North Korea Sanctions"
Unofficial Medical Market Expands... 9 out of 10 Have Experienced It
South Views More Positively but Will for Unification Declines

Illustration of international sanctions against North Korea, including the United States. [Image source=Yonhap News]

[Asia Economy Reporter Kim Bong-ju] A survey revealed that the official economic activity participation rate of North Korean residents was only 71.6% due to the international community's strengthened sanctions against North Korea. Additionally, even among those who went to workplaces or factories, 6 out of 10 respondents said they did not earn any income.

On the 28th, the Seoul National University Institute for Unification and Peace Research conducted a survey last year targeting 109 men and women who defected from North Korea and reside in South Korea. The survey showed that North Korea's 'official economic activity participation rate' (the proportion of households with at least one member attending an official workplace) was 71.6%.

This is the lowest level since the survey began in 2012 (89.8%).

North Korea's official economic activity participation rate fluctuated between 79.9% and 89.1% for five years after 2012, rising to 90.8% in 2018.

However, it dropped to 75.9% in 2019 and further declined to the low 70% range this year, showing a sharp decrease for two consecutive years.

Participation rates in North Korea's official and unofficial economic activities. Photo by Seoul National University Institute for Unification and Peace Studies report.

However, the unofficial economic activity participation rate was 91.7%. This rate has remained in the 90% range since the data collection began in 2012.

Many respondents also reported earning no income even when going to workplaces or factories. The response rate indicating no income at official workplaces was 66%, the highest ever recorded.

The research team evaluated that these results suggest that the production activities of official workplaces and factories are declining due to strengthened sanctions against North Korea.

Furthermore, according to the survey on healthcare environments, the unofficial medical market has been steadily expanding. Until 2011, 70% of respondents reported having experience using jangmadang (marketplaces) or private pharmacies, but last year and this year, the figure reached 90%.

Living conditions regarding food, clothing, and shelter showed some slight declines in certain areas but were generally stable. There were almost no cases of starvation, and 68.8% of respondents said they mainly ate white rice as their staple food, similar to the previous year.

Prayer for Unification. Last June, ribbons with inscriptions wishing for unification and peace were hung over the barbed wire at Imjingak, Paju, Gyeonggi Province.
[Image source=Yonhap News]

Additionally, the perception of North Korean residents viewing South Korea positively has increased, but the will for unification has decreased.

The proportion of respondents who saw South Korea as a 'cooperation partner' was 63.3%, an increase of 13.3 percentage points (p) from 50.0% the previous year. The rate of those viewing South Korea as a hostile target decreased from 29.3% to 18.3%.

Nevertheless, the percentage of North Korean residents who strongly desire unification was 78.9% this year, the lowest since 2011. This is a decrease of 5.6 percentage points from 84.5% the previous year.