It is confirmed that North Korea is pushing for a process that will convert government-focused traditional financial infrastructures into IT-based electronic financial infrastructures according to Supreme Leader Kim Jong-un of North Korea. It seems that it is planning to introduce many electronic financial services to control cash that is distributed due to expansion of private economy activities rather than to improve quality of financial services for North Korean residents.
Aside from installing 24-hour cash dispensers, North Korean Government is working on increased use of electronic cards such as Narae Card, adoption of mobile simple payments, establishment of shopping malls that support every electronic payment, and development of solutions that can mediate Bitcoin transactions.
After The Electronic Times investigated conditions of electronic financial industry in North Korea along with South Korean research institutes that are related to North Korea, it is shown that North Korea is currently working on extensive improvement in its financial infrastructures as it has started to show huge interests in financial informatization recently.
First, it has expanded electronic financial infrastructures centered on Pyeongyang and Wonsan. At major locations, it installed many 24-hour cash dispensers to expand use of non-face-to-face financial services. Central Bank of North Korea along with Korea Joint Venture Bank are issuing electronic payment cards. It is likely that North Korean residents are also using prepaid and debit cards just like South Korean residents.
It also developed its own credit card readers and placed them at restaurants, gyms, and major stores that have many foreign visitors.
Manmulsang Project, which applies electronic financial services to major shopping malls, is also drawing interests. North Korean Government is working with a private business and introduced Manmulsang electronic payment system to avoid traditional practices of using cash for transactions.
North Korean Government’s goal is to have electronic payments available through computers and mobile network and expand Manmulsang Project as a global e-commerce system. Manmulsang Project connects every card and payment service and it can carry out various trades and sell products as well. North Korean Government set a goal of investing profits made from such projects into future projects such as development of state-of-the-art technologies.

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<Inside of a North Korean bank seen through VR>

To renovate images of North Korean banks, it also introduced a site that can experience them through VR (Virtual Reality). Through this site, one can observe inside and outside of a bank without having to visit a bank. When The Electronic Times observed Golden Delta Bank through VR, it was able to see road view and inside and outside of Golden Delta Bank.
It also recently started working on development of wire transfer and payment services through cryptocurrencies. Although these services are not used much yet, it developed ‘Korea Coin’ and is even pushing for ICO (Initial Coin Offering) of Korea Coin.
North Korean IT business called Chosun Expo developed a solution that can mediate Bitcoin transactions and is selling this solution.
North Korean Government has been secretly working on large-scale mining process of Bitcoin since 2017. However, it is heard that it has not achieved huge success from this process. It is heard that it recently started mining ‘Monero’ cryptocurrency that guarantees anonymity.
According to Coinmap, there are four restaurants in Pyeongyang and one restaurant in Wonsan that receive Bitcoins as payments. It is heard that number of places that receive cryptocurrencies as payments increased recently and some of these places are The Bar, Round Restaurant, Club Jona, and Café Bar.
An opinion on having financial informatization as the primary task to solidify Supreme Leader Kim Jong-un system was also brought up. According to paper and school bulletin of Kim Il-sung University obtained by The Electronic Times, need for financial informatization and how to execute informatization are described in detail. Rhee Myung-jin, who is a researcher from Kim Il-sung University, described that quickness, accuracy, and convenience must be guaranteed for financial transactions by increasing standard of financial informatization. He also suggested that it is necessary to secure outstanding personnel that can develop programs that carry out financial informatization and that North Korean Government needs to introduce 24-hour financial information system.
“North Korean authorities are providing 24-hour financial services through national information telecommunication network and are pushing for development of mobile payment services.” said Lee Yoo-jin who is a research from Korea New Economy Center. “They are introducing electronic financial services as part of their plan to gather cash that is being distributed due to expansion of private economy.”
Staff Reporter Gil, Jaeshik | osolgil@etnews.com