How A North Korean Defector Sends Money Back Home
It may seem like North and South Korea are completely cut off from each other, but even after decades of separation, channels of communication persist. Defectors who have made it to freedom are bridging the gap, connecting people inside North Korea to the world beyond. Through extensive broker networks, they send back money and information, accelerating change in the world’s most authoritarian country.
Through this process known as remittances, millions of dollars are sent into the country every year, representing huge spending power. Here’s how they do it!
Reconnecting with Family
To send money back home, North Korean refugees must first contact their families. They hire brokers to find their relatives and arrange illicit phone calls close to the border with China, where smuggled Chinese cell phones can connect to international networks. In North Korea, people are often wary of such brokers, so they may have to be convinced with codewords or childhood nicknames that only the family would know, or recognizable handwriting and photos.
To avoid being caught, contact is often made from the mountain at night, or using a series of text or voice messages sent through apps like Wechat and quickly deleted. When the call finally happens, it can be emotional for both sides.
“You hear someone say, ‘Okay you’re connected, you can speak now.’ But no one says anything to each other. You just hear a high-pitched tone, and silence. Could this be real? You’re just crying, and can’t even speak.”
– Miso, escaped North Korea in 2010
How Remittances Work
There are different ways to send money to North Korea, but a simple version involves three parties: A North Korean resettled in South Korea, a remittance broker in North Korea, and the recipient in North Korea.
- A resettled North Korean, makes a request to a remittance broker to arrange a transfer. They wire money to a Chinese account controlled by that broker.
- The remittance broker in North Korea uses a smuggled Chinese phone to confirm receipt of the funds.
- After taking a hefty commission, they give cash to the refugee’s family. The family can confirm receipt of the money by sending a photo, video, or voice message back, so the sender can be confident that they’ve not been scammed.
With this process, the remittance broker in North Korea occasionally needs to replenish their cash on hand. This could happen through the physical smuggling of cash, but oftentimes money from their Chinese bank account is used to buy goods in China that are then sold in North Korea, generating cash. In this way, physical money never actually has to cross borders.
The Power to Change Lives
North Korea is one of the poorest countries in the world, whereas South Korea is one of the richest. Therefore remittances from relatives in South Korea or elsewhere can be absolutely transformative. The money is spent on almost everything, including food, clothing, shoes, medicine, housing, transport, and bribes to keep the family safe.
“I’ve sent money back to North Korea ever since I resettled in South Korea. I send an average of $1,500 a year. My parents used the money to buy a house! They’re also going to use it to help my younger brother escape and come to South Korea.”
– Jeonghyuk, resettled North Korean refugee
With new resources also comes new opportunities. North Koreans who never had the means before can now think about starting a business at the Jangmadang, or market. Since the collapse of the regime’s socialist economy in the 1990s, the markets have become essential to making a living. The flow of remittances is increasing trade, food security, marketization, and entrepreneurship, empowering ordinary North Koreans to gain autonomy.
A Ripple Effect
Along with money, North Korean refugees send back news and information from the outside world. At first, family members back home may not want to hear about life beyond the border. Decades of propaganda villainizing the outside world can be difficult to overcome, and if caught in communication with defectors, they could face serious punishment.
But as money continues to flow in, many people can’t help but be curious- what do their relatives outside do to make a living? What kind of house do they live in? Is life there like the K-dramas smuggled into North Korea? Conversely, defectors ask their family members, what they can do with the money in North Korea? This exchange of information is incredibly valuable, providing a glimpse into the most closed society on earth.
The flow of information into North Korea erodes the regime’s propaganda and changes worldviews. As the people learn more about the wealth and opportunities of the outside world, some may also risk their lives to escape. Money sent from remittances can also be used to fund this dangerous journey.
“When I first contacted my family back in North Korea after I resettled in South Korea, they didn’t believe that I was doing well here. My parents even resented me a little for leaving. But after I sent them money and told them more about my life here, their views changed. Now they realize that the regime has been lying to them and they’re not as loyal anymore. I have become a pioneer of freedom to my family back in North Korea.”
– Jo Eun, rescued by LiNK in 2017
Agents of Change
Remittances are about more than just the movement of money. Refugees who have been separated from their families aren’t able to go back home themselves, but can still care for their loved ones in some way. Every phone call into the country and every dollar sent back represents one small step towards the day when the North Korean people finally achieve their freedom.
More than 33,000 North Korean refugees have made it to freedom, and although it has become more difficult during the pandemic, surveys report that 65.7% have sent money back to North Korea. At LiNK, we’re committed to working with and building the capacity of North Korean refugees so they can succeed in their new lives and make an even bigger impact in their communities and on this issue.
North Korean Refugee Rescues: An Update from Our Field Manager
Over the past few years, the impact of COVID-19 has had a devastating effect on the day-to-day lives of North Korean people. Pandemic-related border lockdowns, increased surveillance, and unprecedented restrictions made it impossible for North Koreans to escape and reach freedom.
After a painstakingly long pause on rescues, at the end of 2022 we were finally able to start moving people safely again. Our field team has worked tirelessly to establish new, viable routes and adapt to circumstances on the ground. Navigating unprecedented restrictions and developing new routes has led to significantly higher and extremely volatile rescue costs, but our commitment is stronger than ever to help North Korean refugees reach freedom.
We recently sat down with our field manager, Jennifer* to hear directly about the current needs, challenges, and potential of this new era of rescues.
Could you give us a general overview of the situation in China?
So much has changed since the start of the pandemic. Activists have been kicked out of the country; brokers no longer want to do this work because of the increased surveillance and restrictions. The number of underground rescue networks has shrunk significantly. Navigating these challenges puts us at higher risk, which means that we have to use more resources, including people on the ground, to guarantee that our groups move safely. Because of the increased costs, we soon might have to ask people to wait to be rescued and it’s agonizing, especially because timing is critical in the underground railroad. There are very few moments when everything aligns and it is safe to travel, but because we don’t have funds, North Korean refugees lose those rare, precious opportunities. The North Koreans I’ve been in communication with are living in constant fear because of the increased use of security technology by the state, such as facial recognition with AI. On top of that, domestic violence continues to be a serious issue for many North Korean women who were trafficked or forcibly married in China.
Is there a risk of being sent back to North Korea right now?
Refugees who are caught in China are forcibly sent back to North Korea where they are severely punished. However, because of the pandemic, North Korea sealed its borders in January 2020 and has yet to reopen them. This means that repatriation hasn’t been possible yet, but we are hearing rumors that North Korea will start receiving people again soon.
Many people who have tried to escape were arrested and we’ve heard that currently, there are a large number of North Korean refugees in Chinese prisons.
What kind of situations are people escaping from in China?
It’s mostly North Korean women who were trafficked or forcibly married to Chinese men. Some have been living in China for several years and the pandemic left them stranded with no way to escape. We had heard that some of these women were facing even worse treatment from their Chinese husbands than before. The people who arrived in China in 2019 or early 2020 only had a very short period of time to learn the language, culture, and to adjust before having to quarantine. It has been much more difficult for these people to try to escape from China.
More recently, some of the refugees we’re in communication with have serious health issues. But they can’t go to the hospital because they’re not Chinese citizens and would risk being arrested and sent back to North Korea. They are hoping to make it to South Korea to get the healthcare they need.
And what are some of the challenges that North Koreans in China face day-to-day?
They can’t go outside. There was already a lack of freedom to travel and move around freely before the pandemic, but it has only gotten worse since then. When I speak with them, it feels like they’re losing hope. The reality of how difficult and expensive the journey has become is discouraging, especially because they hear about people who attempted the journey and were caught and arrested. So for people who were connected with us recently, many were shocked to hear about our work. They said it was almost surreal because they didn’t think it was possible to get to freedom at this time.
What motivated these people to leave North Korea in the first place?
It’s different depending on the person. There are usually personal circumstances that lead them to look for better opportunities in China or South Korea. Many people are tricked into human trafficking. Some women choose to live with a Chinese husband of their own will. They believe it’s better to live in China in this way rather than live in North Korea.
What have been the biggest challenges for you?
While I'm very grateful that we've been able to resume rescues, it's a shame that we can only move a limited number of people due to increased costs and heightened security. I stay in close contact with refugees in China who are hoping to reach freedom, and some are in urgent situations. A woman who was 4 months pregnant had to make the journey before her belly got too big. Some refugees have health conditions that need immediate treatment, but they’re unable to go to the hospital. My hope is that we can rescue as many people as possible so they can experience freedom and live the full lives that they deserve.
Since restarting rescues last December, the significant increase in costs have depleted our rescue and resettlement funds, leaving many North Korean refugees waiting, once again, for an opportunity to escape. Your support is needed now more than ever.
Throughout the month of June, all one time gifts made here will go 100% towards our rescue and resettlement efforts. In honor of World Refugee Day 2023 and the countless people waiting for their rare and precious opportunity to reach freedom, give a gift today.
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*Jennifer is a pseudonym used to protect our field manager’s identity and avoid compromising this work.
