North Korean authorities have intensified a street money crackdown in Hyesan, Ryanggang province, targeting small-scale money changers. Officials aim to control foreign currency circulation and enforce government authority over financial transactions.
The clampdown began in mid-October, with police shifting from informal warnings to direct arrests of street-level operators. According to local sources, officers now apprehend one or two money changers daily and send them to labor camps. For instance, three individuals detained on October 25 were immediately placed into forced labor programs.
Authorities continue to focus on low-level operators rather than large-scale financiers, who remain largely untouched due to their connections and financial influence. A source explained that while street money changers struggle, the “big fish” behind significant currency flows continue to operate safely.
Historically, street-level money changers act as intermediaries for private currency trading. They purchase foreign currency from customers in alleys, stairwells, or other discreet locations. Then, they pass the currency on to higher-level operators, earning modest profits. The pandemic sharply reduced smuggling activity, leaving many small money changers without steady income.
Furthermore, tighter government controls have discouraged potential customers from approaching known money-changing spots. As a result, some low-level operators have shifted temporarily to alternative businesses. However, sources warn this is unlikely to last. The government intends for the street money crackdown to push transactions toward official banks, although mistrust in these institutions persists.
Some remaining money changers have adapted their operations to survive. Instead of waiting openly on the streets, they take phone calls at home or meet clients at secret locations. While this approach reduces arrest risk, it also limits revenue and results in longer periods without transactions.
Experts say the street money crackdown highlights the regime’s ongoing effort to consolidate control over informal economic activity. Local sources indicate that small operators perceive little hope for relief as enforcement continues to target minor players while ignoring major financial networks.
Observers note that the crackdown could have broader economic and social consequences. Limiting informal foreign currency exchanges may reduce street-level crime but could also hinder livelihoods for vulnerable citizens. Analysts suggest continued enforcement may prompt more clandestine operations, potentially complicating regulatory oversight.
Ultimately, the street money crackdown demonstrates the regime’s focus on controlling financial flows at the grassroots level. While the policy strengthens official oversight, it leaves small-scale operators exposed to harsh penalties and uncertain futures.
