Exclusive: DPRK issues its overseas citizens with guideline for foreign currency offerings

A detailed set of guidelines for making foreign currency offerings to the North Korean state has just been issued to North Koreans with overseas trading permits and other North Korean citizens dispatched abroad for commercial activities, according to our correspondents and sources.

The guideline for making foreign currency offerings “in support of Songun” (Military-First) was issued in the form of a National Defense Committee (NDC) order. The NDC order retains the force of an order from Kim Jong-un and North Korean citizens who have permits to conduct business abroad are required to make offerings to the state in Yuan or US Dollars.

A detailed set of guidelines stipulating the awards system for foreign currency offerings is unusual, but not unprecedented. Notably, such guidelines have been issued in times of economic crisis, such as during the famine of the mid-1990s, after the 7.1 economic policy revisions, and following the 2009 currency revaluation.

Foreign currency offerings may be contrasted with Workers’ Party orders for regular ‘loyalty offerings’. These orders are issued annually and are not accompanied by a detailed set of guidelines.

Based on the guidelines issued by the NDC, those who make offerings of US$1000 or more will be rewarded with a Rank 3 decoration. Offerings of US$10,000 or more will expedite the donor’s direct entry into the Workers’ Party by bypassing the customary probation period, or lead to a ‘Letter of Appreciation’ from Kim Jong Un. Those who offer up more than US$100,000 will receive a state Medal of Effort. In addition, they will receive either an extension to their right to conduct business abroad, or a guaranteed re-issue of their permit to leave North Korea for business purposes.

This is likely to result in increased pressure for North Koreans working overseas to make foreign currency offerings on top of the customary loyalty offerings.

According to our sources in situ, a rumour has been spreading among North Korean businessmen abroad regarding a certain market trader who offered US$1,000,000 to the state and received Pyongyang residency as a reward. He is also said to have been presented with the lead appointment of an overseas North Korean company.

This rumour is likely to have been spread from within the Workers’ Party, in order to encourage North Korean businessmen abroad to participate in the latest campaign of foreign currency offerings. Since there is no freedom of movement for North Koreans – neither for traveling abroad, nor within North Korea – the rumour’s emphasis on connecting foreign currency offerings with freedom of movement can be seen as significant.

The recent guidelines were also issued to North Koreans inside the country. One North Korean source suggested, “In the period following the UNSC sanctions, the state has spent a lot of resources on the military in terms of Wartime Mobilization, Grade 1 War Readiness, and the inter-Korean state of war. The DPRK is feeling the combined effects of the sanctions and military spending.”

North Koreans make Songun offerings. Source: May 3 issue of Rodong Sinmun.

Furthermore, according to the testimonies of North Koreans who have very recently returned to their overseas posts from Pyongyang, the Propaganda and Agitation Department of the Korean Workers’ Party has been stressing that the people must “serve as a patriotic rear guard to those serving on the front line”. Meat, toothpaste, soap, hand towels and other household items are being collected at residential units, workplaces and schools as “Songun Offerings”.

In addition, the Propaganda and Agitation Department has been publicizing the following statement from Kim Jong Un: “Today, those who make many Songun Offerings are the true patriots.”

There are other signs that the economic situation is worsening. Our source added, “The number of vehicles on the road in North Korea have dropped significantly. We are being told that those who trade in fuel privately will be dealt with according to martial law. As the number of vehicles transporting goods long-distance have dropped, market prices have shot up. There is increasing upset on all sides.”