As Christmas draws near, North Korea's authoritarian regime is tightening its grip on its people. A new QR code payment system and a major crackdown on Chinese phones along the border are the latest tactics to enhance surveillance and control. These measures are aimed to stifle any potential dissent and reinforce the regime's dominance, even during a time of year traditionally associated with family and festivity across the border. This seems to be in line with broader trends in North Korea, as they attempt to eliminate outside influence in the country after a period of limited freedoms. 

FINANCIAL TRANSACTIONS CRACKDOWN

Pyongyang has recently implemented a QR code payment system as part of its “Local Development 22-20" policy, which is an initiative aimed at modernizing the economy by requiring merchants in major cities to adopt electronic payments. This new system is expected to coexist with the tightly controlled national planned economy, where the communist regime centrally plans and determines the types of goods to be produced, the amount of production and the price at which the goods are offered for sale, thereby allowing the government to maintain control while allowing market activities – once banned by the regime – to continue.

While the QR code payment system may seem like a modern convenience, it also serves as a powerful tool for government surveillance. By tracking every transaction, the regime can monitor the financial activities of its citizens, from the smallest purchase to the largest investment. This intrusive measure highlights the government's increasing control over the private lives of its people.

However, the low-level usage of smartphones in the Hermit Kingdom means a greater delay in fully implementing the new digital payment system and a stronger social impact over North Koreans’ ability to stay connected with family and friends, both domestically and internationally. For context, a study conducted by the Korea Institute for National Unification indicates that only a little over 23 percent of some 25.7 million North Koreans own smartphones as of February this year. North Korean citizens also prefer using foreign currency because it is perceived as more stable, though the country has made efforts to confiscate foreign currency. 

EXTERNAL COMMUNICATION CRACKDOWN

North Korea has launched a major crackdown on the use of Chinese phones along its border with China, particularly in North Hamgyong province. This campaign aims to curb the flow of information from the outside world and restrict communication across the Chinese border. Considering the many North Koreans who rely on Chinese phones for business purposes and to stay connected with family members who have defected and live abroad, this crackdown has significant implications for the population. Meanwhile, with the introduction of 4G communications in North Korea, where users are now able to make video calls and exchange photos via local smartphone apps, authorities can more easily track and surveil communication, potentially limiting the spread of information that are not in line with state propaganda.

Earlier this year, the authorities similarly cracked down on smuggled Chinese-made smartwatches that can connect to Chinese mobile networks using USIM cards. As these devices are able to make calls, send messages and access WeChat, the regime feared that they could encourage unauthorized communication with the outside world, thus imposed severe consequences, including interrogation and potential detention of individuals caught with these smartwatches. Even those who only used the smartwatches for Bluetooth connectivity without inserting a USIM card could still be punished. Unfortunately, many North Koreans bought these smartwatches without knowing their full capabilities, as the instruction manuals were often in Chinese, which led to increased scrutiny for those possessing these devices due to a lack of understanding.

CELEBRATING AN ISOLATED CHRISTMAS

The combined effects of the escalated surveillance via the QR code payment system and harsh penalties for using Chinese phones create an atmosphere of fear and anxiety among citizens. This has a profound impact on North Koreans, especially during Christmas, the time of year that is traditionally associated with exchanging gifts and connecting with loved ones, as it has become difficult for people to maintain these connections. For the Christian minority in North Korea, celebrating Christmas is already fraught with challenges due to the regime’s strict control over religious activities. The intensified monitoring during the festive season further complicates the ability of underground churches to gather and worship, thus exacerbating the isolation experienced by the Christian communities in North Korea.