Farm officials in North Korea’s Jagang province have launched a scheme that enables farmland rental corruption for private gain. A farm in Kangye city began leasing parcels of state owned land in mid April 2026. The management committee chairman set aside between 49,000 and 99,000 square meters for this purpose. He charges 10,000 North Korean won per 3.3 square meters as a rental fee. Contracts typically come in 3,300 square meter units for simplicity. Consequently, even the minimum contract requires an upfront payment of 10 million won.
This farmland rental corruption puts the land completely out of reach for ordinary workers. Most farm workers already struggle to secure enough food for their families. Paying 10 million won upfront is virtually impossible for them. Therefore, only donju or wealthy private entrepreneurs can participate in this scheme. Officials with financial means to mobilize cash may also rent the land.
The practice follows a calculated strategy for double profit collection. The chairman collects rental fees in spring when the land changes hands. He then takes an additional share of the autumn harvest. This approach secures both immediate cash and physical produce later. A typical Kangye area farm has five work brigades for organization. Each brigade handles a base area of approximately 165,000 square meters. Total farmland per farm reaches roughly 825,000 square meters. The rental portion represents only 2 to 4 percent of the total. This small percentage allows the scheme to escape scrutiny from state inspectors. Nevertheless, farmland rental corruption generates a steady side income for the official.
The scheme does not end with collecting the land fee at all. Officials also take a portion of the harvest in autumn consistently. This creates a structure where they profit on both ends. Ordinary farm workers call this kind of scheme something with a big shadow. They mean that corruption is built right into the system. Workers have openly criticized farm officials for diverting state owned land. The management committee chairman is essentially selling off public land for personal gain.
This farmland rental corruption has attracted willing investors as well. Rice prices in Kangye city markets now exceed 20,000 won per kilogram. Holding physical grain has become more profitable than holding cash currently. This holds true even after accounting for seed costs and fertilizer expenses. Investors must also pay the autumn harvest share owed to the official. One season of farming is expected to return the initial investment fully. The higher food prices rise, the more attractive farmland rental becomes. Wealthy individuals see it as a safe investment with stable returns. Consequently, those who hold cash are now occupying farmland across the region. The gap between rich and poor in rural areas is widening further. Farmland rental corruption will likely continue as long as food prices remain high.
