북한의 지급결제 현황 및 발전방향 고찰 = A Study on the developments and future directions of the payment systems in North Korea

다국어 초록 (Multilingual Abstract)

This paper addresses the current developments and future directions of payment systems in North Korea. The Central Bank Act of North Korea governs the currency issuance and payment systems. And the Currency Circulation Law handles the matters on the issuance, distribution and settlement of cash and non-cash payment media. The financial institutions in North Korea include the Democra社c People's Republic of Korea Central Bank(hereafter ‘Central Bank’) and foreign exchange-related banks such as the Chosun Trade Bank, foreign exchange specialized banks and foreign joint ventures.
Besides cash, non-cash payment media covers bank accounts, paper-based media, and electronic prepaid or debit cards. As paper-based media there are instant payment invoices, checks, payment invoices, and request invoices. A majority of electronic cards are prepaid cards, which are used not only for payments on-line and off-line but also for cash withdrawal and remittance. The main channels for payments in North Korea are the offices of the Central Bank and the Post Office. Residents in North Korea use PCs and mobile devices for e-commerce and ATMs located in some banks and hotels for banking services with electronic cards. But whether the intranet and mobile banking channels are used in North Korea remains unknown. Settlement via non-cash payment media takes place across the deposit accounts at the Central Bank. The net settlement takes place in case of the payments among financial institu社ons.
In order to modernize its payment systems, North Korea should first encourage economic entities to use banks more often by enhancing the reliablity of banks and its legal tender and lowering their preference for cash. Second, it is necessary to build large-value and retail payment systems in the first place for financial institutions and then for companies. Third, North Korea needs to build a mobile-based payment system for consumers who are familiar with social trends, and make payment services computerizedFourth, North Korea should take advantage of the experiences and know-how South Korea has gained in establishing and operating payment systems and prepare for the time when the payment systems of two Koreas can be integrated.