North Korea is issuing “grain purchase vouchers” through a smartphone electronic payment app that can be used at some grain stores. (Google generative AI model Gemini)
North Korea is holding public lectures encouraging electronic payment adoption, but citizens remain hesitant due to concerns about government surveillance and policy instability.
A source in South Pyongan province told Daily NK recently that “several lectures on electronic payment use have already been held in Pyongsong,” with the lectures urging the public to make active use of electronic payments “because they are convenient and help develop the country.”
The North Korean authorities do not pressure the public to use electronic payments or mandate their use. However, the authorities actively encourage the public to use them, packaging their use as a “patriotic act” of participation in state policy.
In fact, North Korea has sought to reduce cash transactions and raise the share of non-cash transactions through electronic payments since enacting a law on electronic payments in 2021. Several electronic payment services operate in North Korea, including Chonsong, Narae, Apnal, Saebyol, Kangsong and Manmulsang.
According to the source, about one or two out of 10 North Koreans buy food or industrial goods using electronic payments.
“People who use electronic payments think it’s convenient since you don’t have to walk around with cash,” the source said. “However, they minimize the amount on their electronic cards due to concern over surveillance or sudden policy changes.”
Many North Koreans hesitate to use electronic payments as they still believe cash is the safest way to go, the source said.
Technical limits and trust issues hamper adoption
Even in marketplaces, the heart of economic activity in North Korea, the use of electronic payments is limited. “People sell goods in markets using electronic payments, but that’s only the case when you buy in bulk, with most transactions done in cash.”
Another reason North Koreans avoid electronic payments is the poor telecommunications infrastructure there. Pointing to technical limitations, the source said, “Electronic payments often don’t work due to poor connections.”
North Koreans also remain distrustful of electronic payments due to past policy inconsistencies by the North Korean authorities, who have a record of forcing people to follow suddenly enacted policies or suspending services without explanation.
“Trust in state policy is low because the state has implemented policies only to eliminate them so many times suddenly,” the source said. “If the state continues to implement electronic payments stably and trust in them builds, more people will use them.”
The Rodong Sinmun, in a Nov. 2 article titled, “Let anyone become the proud owner of the information economy age,” said millions of people had signed up to the Samhung Electronic Wallet. The Samhung Electronic Wallet, a mobile app made by the Samhung IT Exchange Center, can reportedly be used to pay for goods and transportation, pay utility bills and transfer money between individuals.
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