North Korea banking distrust has intensified as the Central Bank ordered new measures to address growing public anger. The bank instructed provincial branches to create complaint hotlines and electronic channels to receive direct feedback from citizens.
Officials admitted that more North Koreans have abandoned bank cards and returned to storing cash at home. This trend appeared clearly in the bank’s financial statistics from the first half of the year. As withdrawals slowed and electronic payments declined, officials saw an urgent need to act.
North Korea banking distrust stems from repeated delays in deposits and withdrawals. Citizens often face excuses from bank clerks when requesting their savings. Many also complain about high commissions on electronic transactions and interest rates that change arbitrarily. These problems fueled frustration and eroded trust in the financial system.
In response, the Central Bank circulated phone numbers and instructions for submitting complaints. People can now report issues such as poor service, withdrawal delays, or limits that exceed official rules. Authorities encouraged citizens to provide full details, including bank name, branch name, and the clerk involved.
The move highlights a significant contradiction in state policy. Officials urge citizens to increase savings, yet banks restrict access to deposits. As this gap widens, confidence collapses. People prefer to keep their money hidden at home rather than rely on unstable banks.
North Korea banking distrust also threatens state ambitions to expand electronic payments. Leaders have promoted card usage for years, hoping to track funds and manage exchange rates more effectively. Without basic trust, however, the entire strategy risks failure.
Analysts argue that the government sees this crisis as urgent. By providing hotlines, leaders acknowledge that discontent has reached dangerous levels. If they fail to rebuild trust, both the banking sector and the plan for digital transactions could collapse.
Nam Jin-wook, an economic researcher in Seoul, explained the state’s logic. He noted that cash transactions remain difficult to track and rarely support investment. However, he stressed that unless people can freely withdraw savings and face fair fees, distrust will not diminish.
Experts conclude that North Korea’s banking distrust cannot be solved quickly. Gradual improvements in access, transparency, and commissions must come first. Only then can the government strengthen electronic payments and gain the trust of citizens.
