Discussion underway for collaborative Seoul and Washington policies aimed at fostering peace with North Korea by the government
North Korea has made significant strides in embracing digital payments and ATM services, with the capital city of Pyongyang leading the way. Mobile phone-based electronic payment systems and ATMs, introduced since late 2024, are now commonly used for daily transactions, public transportation, and mobile phone recharges.
Three notable digital payment platforms—Samhung, Jeonseong, and Manmulsang—are gaining popularity, while the "Hwawon E-Bank," launched in October 2024, functions like an online-only bank with ATMs installed at major urban locations and some provinces.
However, the North Korean regime may use these technologies for tighter financial control, as mobile payments provide traceable transaction data, enhancing surveillance capabilities.
When it comes to defectors sending remittances to family members in North Korea, the search results do not provide contemporary information about the challenges they face. Nevertheless, it is known that defectors often encounter extreme barriers in sending money back due to strict government controls, sanctions, and the regime's monitoring of foreign financial flows.
While digital payments within the country might facilitate some internal transfers, they do not inherently ease remittances from outside, especially given North Korea's isolation and sanctions limiting legal cross-border money transfers.
Furthermore, North Korea engages extensively in cyber-theft and cryptocurrency hacking, generating illicit digital funds to support its regime and weapons programs. This complex layer in North Korea's digital financial ecosystem does not directly relate to defectors' remittance challenges.
In a recent press briefing held by the unification ministry on Aug. 1, the speaker, Chang Yoon-jeong, did not discuss specific topics or agendas related to this digital advancement or remittances. The location of the press briefing was not specified, and it is unclear whether it was held in person or virtually.
As North Korea continues to develop its digital payment infrastructure, understanding the challenges faced by defectors sending remittances remains crucial. Further research and specific sources would be necessary to delve into the remittance methods used by defectors or alternatives such as informal transfer systems.
- The government of North Korea may use the traceable data from mobile payments for tighter financial control, enhancing surveillance capabilities, particularly in the context of war-and-conflicts and politics.
- Diplomacy surrounding North Korea should address the challenges defectors face when sending remittances to family members, considering the strict government controls, sanctions, and regime monitoring of foreign financial flows.
- The industry of digital payments in North Korea may facilitate internal transfers, but it does not inherently ease remittances from outside the country given the isolation and sanctions limiting legal cross-border money transfers.
- In addition to the growth in digital payments, North Korea's engagement in cyber-theft and cryptocurrency hacking is a complex layer in its digital financial ecosystem, but it does not directly relate to defectors' remittance challenges.
