It has been reported that the North Korean cabinet recently issued guidelines to the commercial bureaus of each provincial People’s Committee aimed at strengthening market control and economic management.
A Daily NK source from Jagang Province said on the 29th, “A cabinet directive was issued to the Commercial Bureau of Jagang Province on the 22nd with the main contents of adjusting market operations, restricting grain distribution, and expanding electronic payments. This directive was simultaneously assigned to the Commercial Bureau of the National Provincial People’s Committee. “It is,” he said.
Sources say that the Cabinet’s directive is linked to the ‘Local Development 20×10 Policy’ and reflects the authorities’ will to revitalize the local economy and increase transparency in market activities while maintaining the coexistence of the nationally planned economy and the market economy. .
First of all, the Cabinet is known to have given this directive to allow the Provincial Commerce Bureau to autonomously adjust market operating hours depending on the season and time of year. Previously, in order to adjust market operating hours, several steps had to be taken to obtain approval, but these procedures were drastically shortened and actual authority was delegated to the Provincial Commerce Bureau.
The Jagang Province Commerce Bureau estimates that this will enable efficient mobilization of labor in times of need, such as supporting rural areas or responding to natural disasters.
Meanwhile, in order to enforce this directive, it is said that they plan to pilot adjust and review the market operation depending on the situation for a month in December and then regularize it into the administrative enforcement regulations of the Provincial Commerce Bureau and introduce it from early next year.
In addition, in this order, the Cabinet is said to have restricted bulk sales of food in the market under the leadership of the Provincial Commerce Bureau in relation to grain distribution.
In relation to this, the source said that the Jagang Province Commercial Bureau is trying to stabilize grain prices by limiting the daily grain sales limit of each market grain vendor by season starting December 1.
In addition, the Cabinet ordered the expansion of the product identification code (QR code and barcode) payment system, focusing on major metropolitan markets, and ordered merchants to receive training on how to use electronic payments.
The source said, “This directive appears to be intended to centrally control transaction clarity (transparency) and fund flow through merchants’ personal mobile phones,” adding, “However, within the Jagang Province Commercial Bureau, the introduction of product identification code payment is slow in small markets due to the low mobile phone penetration rate. There are also observations that it is,” he said.
He continued, “Although it is a measure to strengthen economic management, there is a burden on merchants to use electronic payment product identification codes (QR codes) even while selling 1 to 2 kg of corn, and there are complaints among older residents about the difficulty in adapting. “It appears that there will be,” he added.
Regarding this measure, Choi Ji-young, a researcher at the Korea Institute for National Unification, told Dong-A Ilbo, “Recent North Korean policies are being pursued in a direction that will contribute to revitalizing the local economy and increasing fiscal revenue.” He added, “It is an extension of the existing movement to expand not only (market) stalls but also market prices.” “It appears to be an intention to improve the worsening financial situation by increasing the discretion of local people’s committees,” he analyzed.
In particular, Research Fellow Choi said, “North Korea continues to emphasize electronic payments to naturally induce private funds into the official economy, increase tax increase efficiency, and facilitate price regulation.” He added, “Related laws and regulations are being improved steadily. “If successful, it could certainly help expand North Korea’s financial capacity, but resolving the problem of rapid increases in market exchange rates is a key task,” he pointed out.
At the same time, he said, “We cannot rule out the possibility that merchants will seek various means of avoidance, such as making payments using foreign currencies.”
Source: www.dailynk.com
