[xtypo_dropcap]T[/xtypo_dropcap]he possibility of another war between North and South Korea is taking its toll on people’s lives. In the communist North, inflation has been exacerbated and food prices are soaring.
According to North Korea Intellectuals Solidarity (NKIS), a group of North Korean defectors based in Seoul, food prices in North Korea started climbing last month after the North’s communist rulers ordered the shelling of the South Korean island of Yeonpyeong.
According to the report, the price of rice has increased since the incident from 900 North Korean won ($6.29) to 1,600 North Korean won ($11.18) per kilogram (2.2 pounds), and the price of corn has increased 50 percent from 400 won ($2.80) to 600 ($4.19).
The official exchange rate between the North Korean won and the Chinese yuan has been relatively stable over the last month, and at the time of the report, 100 yuan ($15) could be exchanged for a little over 2,000 won.
However, according to sources mentioned in the NKIS report, North Koreans unofficially have to pay up to 35,000 won for 100 Chinese yuan, which increased from 22,000 won a month ago. The report cites sources from within North Korea for the numbers. The average income in North Korea is 171,000 won, ($1,900) per year.
According to the report, the value of the North Korean won has dropped significantly, and North Korean businessmen are trying to exchange their won for foreign currencies, fearing it will become worthless if war breaks out.
The Korean Times reported that before the attack on Nov. 23, the North Korean won was already inflating after currency-reform measures went awry.
“The regime redenominated banknotes at a ratio of 100:1 in November last year in a move to squelch a bourgeoning private sector. But the move led to runaway inflation as the price soared by some 40 times within the year, according to reports,” the Times reported.
After the North Korean attack on Yeonpyeong, South Korea installed a greater military force on the island and surrounding area. South Korean President Lee Myung-bak said that North Korea will “pay a dear price without fail” if it makes any more provocations on the South.
On Monday, North Korea’s Central News Agency threatened South Korea with “a full-scale war” if it and the United States continue joint maritime exercises that are located near Yeonpyeong and on the west of the Korean peninsula.
According to North Korea Intellectuals Solidarity (NKIS), a group of North Korean defectors based in Seoul, food prices in North Korea started climbing last month after the North’s communist rulers ordered the shelling of the South Korean island of Yeonpyeong.
According to the report, the price of rice has increased since the incident from 900 North Korean won ($6.29) to 1,600 North Korean won ($11.18) per kilogram (2.2 pounds), and the price of corn has increased 50 percent from 400 won ($2.80) to 600 ($4.19).
The official exchange rate between the North Korean won and the Chinese yuan has been relatively stable over the last month, and at the time of the report, 100 yuan ($15) could be exchanged for a little over 2,000 won.
However, according to sources mentioned in the NKIS report, North Koreans unofficially have to pay up to 35,000 won for 100 Chinese yuan, which increased from 22,000 won a month ago. The report cites sources from within North Korea for the numbers. The average income in North Korea is 171,000 won, ($1,900) per year.
According to the report, the value of the North Korean won has dropped significantly, and North Korean businessmen are trying to exchange their won for foreign currencies, fearing it will become worthless if war breaks out.
The Korean Times reported that before the attack on Nov. 23, the North Korean won was already inflating after currency-reform measures went awry.
“The regime redenominated banknotes at a ratio of 100:1 in November last year in a move to squelch a bourgeoning private sector. But the move led to runaway inflation as the price soared by some 40 times within the year, according to reports,” the Times reported.
After the North Korean attack on Yeonpyeong, South Korea installed a greater military force on the island and surrounding area. South Korean President Lee Myung-bak said that North Korea will “pay a dear price without fail” if it makes any more provocations on the South.
On Monday, North Korea’s Central News Agency threatened South Korea with “a full-scale war” if it and the United States continue joint maritime exercises that are located near Yeonpyeong and on the west of the Korean peninsula.
