The North Korean government recently announced that its nuclear facilities at Yongbyon are fully operational, with the capability of producing enough plutonium to enlarge its nuclear arsenal by approximately one bomb annually. But this announcement represents only one part of a broader narrative of its socioeconomic transformation.
A story of great significance in this transformation is bubbling up at street level. The rise of a class of nouveau riche North Koreans—the “Donju” (money masters)—is changing the dynamics of the nation’s economy and reshaping the relationship between the Kim government and the North Korean people.
What Is the Donju?
The Donju’s story began in the mid-1990s during North Korea’s period of famine and economic collapse. Grass-roots entrepreneurialism sprang up at this time as a coping mechanism through which people were able to access food and other important consumables at a time when the state was unable to provide those things.
The official government ration—the Public Distribution System—essentially fell apart because the government did not have the resources to fulfill those commitments.
The Donju evolved from the grass-roots entrepreneurial activity that arose during this time. They started out as people trading consumable goods in private markets, who then built up enough savings to invest in more substantial business ventures such as billiard halls or karaoke rooms. Restrictions on such activities have relaxed through the 2000s.
