Sending money to North Korea has always been a risky endeavor, but recent crackdowns by both North and South Korea have made it even harder. This has significant implications for the hundreds of North Korean defectors who rely on sending money back home to support their families. The complex and dangerous process involves a covert network of brokers and couriers spread across South Korea, China, and North Korea. However, as both countries intensify their crackdown on illegal transfers of money, the risks for these defectors are increasing exponentially.
One of the biggest challenges faced by North Korean defectors is the fear of being caught. If apprehended, they risk being sent to the country’s dreaded political prison camps, where hundreds of thousands are believed to have died over the years. A survey conducted by the Database Center for North Korean Human Rights revealed that around 63% of North Korean defectors have transferred money to their families in the North. However, since 2020, North Korean leader Kim Jong Un has been cracking down on brokers to stem the flow of money and what he deems as “reactionary ideology and culture” from South Korea.
South Korea also bans such transfers, although authorities have typically turned a blind eye to them in the past. However, this leniency is changing, as seen in the case of brokers Mr Hwang and Ms Joo, who have come under investigation and face charges for violating the Foreign Exchange Transactions Act. In April, their home was raided by police officers, signaling a shift in South Korean authorities’ approach to monitoring and suppressing these illicit transfers.
One of the key obstacles to safely sending money to North Korea is the lack of a legitimate bank that can receive the funds. The two Koreas are still technically at war, and inter-Korean relations have been deteriorating further. North Korean leader Kim Jong Un recently declared that reunification with the South is no longer possible, further straining the already tense relationship. The reliance on covert networks and illegal channels becomes essential for defectors to support their families.
Typically, the process starts with a phone call between defectors in the South and their families in the North, facilitated by smuggled Chinese phones that can access Chinese telecom networks. Brokers in North Korea then travel long distances, sometimes climbing mountains, to arrange these covert calls. The conversation must be brief to avoid detection by the Ministry of State Security, which closely monitors communications. The defector in the South then deposits money into a Chinese account through brokers. However, this step also poses risks, as China keeps a close eye on the flow of foreign currency.
Chinese brokers play a crucial role in bringing the money into North Korea, often disguising the remittances as transactions between Chinese and North Korean trading companies. Within North Korea, several couriers are employed to safely deliver the funds to the families. These couriers do not know each other to minimize the risk of exposure and harm. Brokers use aliases and develop intricate codes to signal when it is safe for families to receive the money. Despite the elaborate precautions, the dangers are ever-present.
The risks involved mean that brokers take a significant cut of around 50% of the transferred amount. For North Korean brokers, this represents a considerable reward for risking their lives. However, with the intensifying crackdown, the stakes have become even higher, with the possibility of facing 15 years in jail if caught. The remittances from defectors dually serve as a lifeline for families in the North and as a means of undermining the regime by showcasing the prosperity and wealth of the South.
The recent crackdown on illicit money transfers raises concerns about the well-being of North Korean families who rely on the funds sent by their defector relatives. A million won, roughly equivalent to $375-$450, can sustain a family of three in the North for a year. The disruption of this financial lifeline adds to the already dire conditions faced by many North Koreans, forcing them deeper into poverty and desperation.
It remains unclear why South Korea has heightened its crackdown on brokers recently. Some speculate that overzealousness and the transfer of power to the police to investigate national security cases, including espionage, from the National Intelligence Service could be contributing factors. Regardless, the consequences are far-reaching, potentially severing a crucial lifeline that connects separated families and provides hope for a better future.
For brokers like Mr Hwang, the fight to support their loved ones back home continues unabated. Despite the risks and mounting pressure from both governments, they remain committed to finding ways to send money to their families. It is a testament to their unwavering determination and love for their relatives that they are willing to navigate dangerous and uncertain paths to provide a better life for them.
As the crackdown intensifies, it is essential to shed light on the challenges faced by North Korean defectors and their families. Their struggle is a stark reminder of the ongoing human rights violations and suffering in North Korea. It is crucial that the international community pays attention to these issues and advocates for the well-being and rights of the North Korean people.
