Crowned as the most corrupt country in the world three years in a row, North Korea was ranked 194th out of 194 countries for the capacity of civil society oversight and expectations of business-to-government bribes. Even though its leader, Kim Jong-un, has repeatedly called to toughen up measures against corruption and ordered a “stern penalty system” to weed out abuses of power among party members during his administration, bribery has been an inalienable part of North Korea since the famine that devastated the country in the 1990s. It is interesting to note that, according to Chris Carothers of the European Center for North Korean Studies, Kim’s anti-corruption campaigns merely targeted mid-level officials to ensure resources could reach the upper tier of the regime.

DECEMBER IS BRIBERY SEASON

Every December, as the rest of the world prepares for a busy holiday season, North Koreans are also kept occupied ahead of their bribery season. Corruption is an integral part of life in North Korea. As described by Carothers, it “pays the bills” and “helps the regime politically because private citizens with enough money can bribe their way out of onerous government rules and restrictions – enabling anything from commerce to travel to changing your ‘songbun’ status,” which determines one’s social status based on their actions and the actions of your ancestors.

According to a source from Radio Free Asia, state-owned companies systematically hand over bribes along with their budget proposals to treasury officials at the end of each year to avoid fund reductions in the coming year. As institutions, including schools and hospitals, solely depend on government funding to run their facilities, it is essential that the authorities accept the bribes and allocate extra funding in order to settle wages or deliver vital services to the public. This is of particular importance where resources are scarce – Pyongyang’s annual budget is less than approximately 1/40 of its southern neighbor.

“It is rare for a budget submitted without bribery to be passed as is”

The source further explained that, since authorities prefer receiving commodities that can be used or readily converted into cash over the actual handing over of cash, his organization offered 20 kilograms of alcohol and 10 gasoline coupons each (worth about $160 USD) as bribes. Another source added that, “It is rare for a budget submitted without bribery to be passed as is,” and if funding is cut, “the damage is passed on to residents.” For instance, ordinary citizens would have to volunteer and step into the shoes of workers to maintain roads and parks, run water treatment facilities, and even clean out sewers.

NEW YEAR, NEW BRIBES

The bribery season does not end as people countdown to the western calendar but carries over to meet the second wave of bribes ahead of Lunar New Year. A source told Daily NK that brokers who facilitate remittances between defectors and their families back in the North are under immense pressure to satisfy excessive demands for cash by the officials guarding the China-North Korea bordering regions. Another source confirmed and added that agents from the Hoeryong branch of the Ministry of State Security visited the homes of brokers and other families to demand cash. 

Border securities are likewise pressurized by their superiors to pay their portions of bribes at the end of the year and during Lunar New Year. It has always been a custom for North Koreans to surrender bribes under the pretense of visiting and delivering holiday greetings to their superiors or agency heads. In particular, officials who wish to keep their jobs or seek promotion would be seen paying visits to the homes of high-ranking cadres and gifting expensive liquor, cigarettes or even cash. As a result, security officials have reportedly been asking residents and brokers within their jurisdictions to raise funds for their New Year visits.

Before the pandemic, jobs at the border regions were extremely competitive, but security officials have lost their stable income from smugglers for the past three years due to the closing of borders from COVID-19. Nevertheless, as China and Russia began trading with North Korea again, smuggling activities are expected to resume in 2023.