Extra! Korea

January 6, 2010

North Korea is suffering runaway inflation

Filed under: economics, North Korea — extrakorea @ 1:32 pm

The Chosun Ilbo has an article about the runaway inflation that has taken place since their currency was reformed.

According to a North Korean source, 1 kg of rice cost about 30 won right after the currency reform but is now closing in on 1,000 won. The U.S. dollar was exchanged at the rate of 75 won to the greenback right after the currency reform but soared to 400 won in late December. There is speculation that it is now only a matter of time before the rate will reach 3,000 won, the same as the unofficial exchange rate of the old won.

The blog called One Free Korea has written, and continues to write, in detail, about this issue. Kushibo believes that this may be the straw that breaks the camel’s back.

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5 Comments »

  1. […] Given the enormous potential cost of reunification, we are not likely to see a unified Korea for a while, and thus can expect North Korean refugees to be coming for years to come. Hopefully, it will be a manageable trickle, and not a flood caused by the straw that broke the camel’s back. […]

    Pingback by North Korean kids become outcasts in the South « Extra! Korea — January 14, 2010 @ 2:37 pm

  2. […] know anything for sure. If he were to die, say, tomorrow, then that could collide with the current troubles caused by the recent currency reform to create a perfect storm of chaos. In that case, five trillion dollars might even look like a […]

    Pingback by Kim Jong-il undergoing daily kidney dialysis? Dead by 2012? « Extra! Korea — January 30, 2010 @ 1:28 pm

  3. […] cell-phones, are key sources of information about North Korea. For example, the story about the recent currency revaluation was broken and spread in this way. More than half [of North Korean defectors] are thought to be in […]

    Pingback by Defectors with cell phone key source of info on N. Korea « Extra! Korea — February 19, 2010 @ 7:02 am

  4. […] 1. The recent currency reform and the resulting runaway inflation […]

    Pingback by Andrei Lankov: Is the Dear Leader losing his grip? « Extra! Korea — March 4, 2010 @ 1:07 pm

  5. […] does agree with Lankov and others regarding the disastrous effects of the recent currency reform. Possibly related posts: (automatically generated)Kim Jong-il names […]

    Pingback by Secretary for foreign affairs and security: Kim Jong-il is “in full control” « Extra! Korea — March 6, 2010 @ 12:11 pm


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