Changes in durable consumer goods consumption in North Korea : Evidence from household appliances in urban areas

다국어 초록 (Multilingual Abstract)

North Koreans have long been portrayed as silently living amidst the material scarcity of daily life, under the restrictions implemented by their government. Once a planned economy, North Korean society experienced great socioeconomic changes due to the terrible famine in the 1990s. At that time, North Koreans sought ways to get out of the crisis, resulting in a dramatic growth of the black markets. In recent years, the sphere of North Korean people’s lives and their livelihoods is beginning to show signs of renewed vitality. This raises the question of how the consumer lives of North Korean people might have recently changed. This research focuses on the consumption patterns of large household appliances among durable consumer goods by North Korean urban households to investigate the gaps and changes between socio-economic classes and regions under the background of the political-economic transition in North Korea. And try to explain the dynamic relationship between the state’s discourse, policies, and individual residents. This research pays attention to large household appliances because durable consumer goods, including electrical and electronic products, are an indicator of consumer revolution. The spread of durable consumer goods reflects the development of the consumption structure in society. To map the consumer life of household appliances of urban residents, this study employed Kornai’s theory of socialist economic transformation, economics theory of consumption, and consumer behavior theory. It mainly adopted the qualitative research method of literature analysis and oral history interviews provided by North Korean refugees, complemented by the statistical analysis of import and export data of household appliances in North Korea.
The socialist regime, established in 1948, has gradually reformed its socialist ideology during the rules of Kim Il-sung (in power from 1948 to 1993), his son and successor Kim Jong-il (in from power 1993 to 2011), as well as his grandson and current leader Kim Jong-un (in power since 2011). In general, the state portrayed household appliances as symbols of developed socialism. However, productivity limitations led to scarcity, making them luxury items distributed by the state. Most importantly, the collapse of the public rationing system in the 1990s deteriorated the shortage economy, prompting the emergence of markets to address the crisis. This transition widened the wealth gap and introduced a money-making group known as donju (literally, masters of money) who smuggled high-value goods including household electrical appliances into North Korea. During the Kim Jong-un era, localization policies aim to advance North Korean-made electronics, yet the country struggles to meet rising demand. The localization policy faces challenges due to sanctions hindering advanced technology imports. While official imports declined, informal channels and smuggling persisted. The decentralized market-driven distribution system surpassed the state-owned plan, leading to contradictions and blurred lines between formal and informal economies. This study also explores the impact of electricity supply, socio-economic class differences, and self-reliant solutions like generators and solar panels. North Korean urban residents navigate conflicts with state regulations, using appliances as a ‘wealth symbol’, showcasing a pragmatic approach cultivated through self-reliance. In summary, this examination of North Korean urban residents’ consumption of household appliances reveals a nuanced relationship between the state and the people during the socialist transition. Both parties pragmatically use consumption as a negotiation tool, enhancing state legitimacy while meeting population needs. Active consumption allows individuals to gradually improve their material standard of living amidst the interplay between planning and market forces. Despite being in the early stages of forming an urban middle class, North Korea has embraced a socialist spirit of consumerism.

국문 초록 (Abstract)

북한 주민은 그 동안 정권의 통제 아래 일상생활의 물질적 결핍 속에서도 묵묵히 삶을 영위하는 이미지로 묘사되어 왔다. 계획경제였던 북한은 1990년대 고난의 행군으로 인해 커다란 사회경제적 변화를 겪었고, 북한주민들이 그 위기에서 벗어날 방법을 모색하면서 암시장의 극적인 성장을 초래했다. 최근 몇 년 동안 북한의 민생 부문이 다시 활기를 회복할 기미를 보이고 있다. 본고는 북한의 정치·경제체제의 전환기 배경 하 북한 도시주민의 소비생활에서 나타나는 사회경제적 계층·지역 간의 격차와 변화를 조사하기 위해 북한 가정에서 사용한 내구소비재(耐久消費財) 중 가전제품의 소비패턴을 중심으로 고찰한다. 또한 국가의 담론, 정책 및 주민 개개인의 역동적인 관계를 설명한다. 가전제품을 주목한 이유는 전기·전자제품을 비롯한 내구소비재는 소비혁명의 지표이며, 내구소비재의 보급은 소비구조의 고도화를 뒷받침한다는 점에 기인한다. 북한 도시주민의 가전제품 소비생활상(像)을 그리기 위해 본 연구는 코르나이의 사회주의 경제전환이론, 소비경제학 이론과 소비자행동이론을 참고하고, 주로 문헌분석, 북한이탈주민에 대한 구술(생애)사, 현지조사를 통해 획득한 자료를 분석하는 질적 방법을 사용하며, 북한의 가전제품 수출입 데이터를 보완으로 분석한다.
1948년에 수립된 북한 사회주의 정권은 김일성(1948~1993년 집권)과 김정일 (1993~2011년 집권), 김정은(2011년 이후 집권)의 집권기에 거쳐 사회주의 이념을 점진적으로 개혁해 온다. 국가는 가전제품을 발전된 사회주의의 상징으로 묘사했지만, 생산성의 한계가 희소성으로 이어져 사실상 국가 배급한 사치품으로 만들었다. 1990년대 배급제의 붕괴로 ‘부족 경제’가 악화하면서 위기를 해결하기 위한 시장(장마당)이 등장했다. 이러한 전환은 빈부격차를 확대하고, 부가치가 높은 가전제품을 비롯한 상품들을 북한으로 밀수한 ‘돈주’라는 신흥 부자 집단을 형성시켰다. 김정은 정권 시기에 들어 북한산 가전제품은 국산화 정책의 추진에 따라 기술과 생산량이 지속적 늘어나는 추세이지만, 여전히 국민들의 광범위하고 계속되는 수요에 충족되지 못한 것으로 보인다. 가전제품은 이 시기에 물질적 보장을 통해 소비를 장려하고 정권의 정당성을 강조하는 역할을 한다. 북한의 국산화 정책은 첨단 기술 수입을 가로막는 제재 때문에 난관에 봉착한다. 공식적인 수입은 감소하는 반면 비공식 경로와 밀수는 지속되었다. 분산된 시장 주도의 유통 시스템은 국가 주도한 계획을 뛰어넘어서, 결국 공식 경제와 비공식 경제 사이의 모호한 경계와 모순으로 이어졌다. 본 연구는 전기공급, 사회경제적 계층 차이, 발전기나 태양광 패널과 같은 자력갱생 해결책의 영향도 함께 고찰했다. 북한 도시주민들은 국가의 규제와 충돌하면서 최종적으로 ‘부의 상징’을 획득으로 자력갱생을 통해 키운 실용주의적 접근법을 보여준다. 결론적으로 북한 도시주민의 가전제품 소비에 대한 본 연구에서 사회주의 이행기 국가와 인민의 미묘한 관계가 드러난다. 양측은 실용적으로 소비를 협상 도구로 활용함으로써 국가는 정당성을 제고하는 동시에 주민의 수요를 충족시키고, 다른 한편 개인들은 적극적인 소비를 통해 계획과 시장의 상호 작용 속에서 물질적인 삶의 수준을 점진적으로 향상한다. 비록 북한의 도시 중산층이 형성되기 초기이긴 하지만, 북한은 사회주의 정신을 기반으로 한 소비주의를 수용해 왔다.

목차 (Table of Contents)

• CHAPTER 1. INTRODUCTION 1
• 1. Problem Statement 1
• 2. Research Question 4
• CHAPTER 2. LITERATURE REVIEW 10
• 1. Household Technology and Women’s Liberation 10
• 2. Consumption in Socialist Countries: The Soviet Union, East Germany, and China Case 13
• 3. Consumption of Household Appliances in DPRK 19
• 4. Research Framework 29
• 4.1. Application of Socialist Economic Transition Theory 30
• 4.2. Application of Consumption Economics Theory 33
• 4.3. Application of Consumer Behavior Theory 34
• CHAPTER 3. METHODOLOGY 36
• 1. Content and Data Analyses 36
• 2. Oral History Interview 37
• 2.1. Oral Credibility and Signifying 38
• 2.2. From Testimony to Narrative 39
• 2.3. Interview Design and Result 41
• 2.3.1. Oral Interview Targets and Investigation Procedures 41
• 2.3.2. Oral Interview Questions 44
• 2.3.3. General Characteristics of the Interviewees 45
• 3. Fieldwork 51
• CHAPTER 4. 1945-EARLY 1990S: LARGE HOUSEHOLD APPLIANCE AS ‘GIFTS’ UNDER THE CLASSIC SOCIALISM ECONOMY 55
• 1. North Korea’s ‘Shortage Economy’ and ‘Gift Politics’ 56
• 2. The Symbol of ‘Junchehwa’: Household Appliance Production 71
• 3. Distribution of Large Household Appliance under Classical Socialist System 84
• 4. Consumer Perspectives: The Luxury Goods in The Planned Economy Era 90
• CHAPTER 5. LATE 1990S-EARLY 2010S: LARGE HOUSEHOLD APPLIANCE AS ‘SYMBOL’ AFTER THE ARDUOUS MARCH 102
• 1. Transformation of the Socialist Economy: Shortage Economy to Self-reliance 103
• 1.1. North Korean Famine 104
• 1.2. Transformation 107
• 2. Supply perspective: Domestic Production Collapses, Foreign Imports and Smuggling Increase 111
• 2.1. Domestic Production 111
• 2.2. Foreign Import 113
• 3. Logistics Perspective: Emergence of the ‘Donju’ Class 119
• 4. Consumers Perspective: Symbolization of Large Household Appliance 123
• CHAPTER 6. KIM JONG-UN ERA (2012-PRESENT): HOUSEHOLD APPLIANCE AS ‘MEANS’ UNDER THE LOCALIZATION POLICY 127
• 1. Reform of the Socialist Economic System and Light Industry Policy in the Kim Jong-Un Era 128
• 2. Supply Perspective: Expansion of Domestic Products 130
• 2.1. Domestic Production 130
• 2.2. Foreign Import 138
• 2.3. Delivery By Person and Smuggling 142
• 2.3.1. Delivery by Person 143
• 2.3.2. Smuggling 146
• 3. Logistics Perspective: Maturity of Logistics Network 151
• 3.1. Supply of Imported Goods: Trading Company 151
• 3.2. Inter-Regional Intermediate Wholesaler 152
• 3.3. Terminal Retailer 155
• 4. Consumers Perspective: Consumer Growth under Sanctions 165
• 4.1. Guarantee Electricity 165
• 4.1.1. Period Differences 166
• 4.1.2. Regional Differences 168
• 4.1.3. Class Difference 170
• 4.2. Impact of Electricity Supply on Large Household Appliance Consumption 173
• 4.2.1. North Korean Household Essentials: Storage Cells, Solar Panels and Transformers. 173
• 4.2.2. Preference of Freezers while the Refrigerator Becomes a Decorative Object 178
• 4.2.3. Prefer Televisions that Use Less Power 181
• 4.3. Class Disparities Manifest in Household Appliance Consumption 183
• 4.3.1. Upper-Middle Class - Preferring (Private) Shops and Department Stores 184
• 4.3.2. Origin Source of the Household Appliances 188
• 4.3.3. Class Disparities in Using Household Appliances 192
• 4.4. The Symbolic Meaning and Practicality of Large Household Appliances 195
• CHAPTER 7. CONCLUSION 199
• REFERENCES 205
• APPENDIX 1. QUESTIONNAIRE 228
• APPENDIX 2. DPRK LEADERS’ INTERNATIONAL SUMMIT MEETINGS (1945-2023) 242
• APPENDIX 3. HS (HARMONIZED COMMODITY DESCRIPTION AND CODING SYSTEM) CODES OF LAGRE HOUSEHOLD APPLIANCES 243
• APPENDIX 4. IMPORT VALUES OF NORTH KOREA’S LARGE HOUSEHOLD APPLIANCES FROM JAPAN, SOUTH KOREA AND CHINA (1988-2020) 244
• APPENDIX 5. UN SECURITY COUNCIL SANCTIONS ON THE DEMOCRATIC PEOPLE’S REPUBLIC OF KOREA 246