A rare video obtained by Radio Free Asia shows several North Korean residents panning for gold in a stream to earn money, in order to survive during difficult times of food scarcity. The video was filmed by a defector before escaping from North Korea.
According to Radio Free Asia, the defector named Kim Il-hyuk, currently residing in South Korea, filmed this video in two counties in South Hwanghae Province of North Korea in April and May 2023. These two counties are Picheon County and Kangnyong County.
The video depicts several men digging and panning for gold on the riverbed. They hope to find small nuggets between the soil and rocks. Two of them are heard conversing in the video. One person says, “These days many people are panning for gold.” The other person remarks, “Because the price of gold has risen.”
Kim Il-hyuk told the Korean department of the radio station that these people are panning for gold to earn money to survive during the period of severe food shortage every April and May. At this time, the previous crop harvest has been consumed, but they may have to wait for several months until the next crop harvest.
In the video, one man mentions that the price of gold in North Korea is 400,000 North Korean won per gram, equivalent to over $1,400 per ounce. He can extract about 0.02 to 0.03 grams of gold in a day, which is worth about 8,000 North Korean won or around $1.
Kim Il-hyuk explained that gold trading is illegal in North Korea, and only corrupt officials would purchase gold panned by the public. They buy it at a low price and sell it at a much higher price in China.
He said that if the source of gold and the seller are exposed, the seller could face execution. Therefore, for safety reasons, those panning for gold only sell it to influential and powerful individuals.
He mentioned that he himself had earned money by panning for gold. The gold sold in China is exchanged for cash. The North Korean government also needs money, so it’s a cycle. The ruling Workers’ Party of Korea is involved in large-scale transactions.
He stated that sometimes those panning for gold want to sell directly to Chinese traders, but it comes with risks as they cannot freely carry the gold to the border for transactions. Therefore, most people choose to sell at a low price to those in power.
Another defector, Lee Hyunseung, currently living in the United States, told the radio station that in North Korea, only specific government-related departments are allowed to sell gold. Anyone caught selling it privately may face imprisonment.
However, Lee Hyunseung revealed that private selling of panned gold by North Korean citizens is already widespread, leading to instances where officials from the National Security Department or party members accept bribes.
Having been part of North Korea’s elite class (the top 1%), Lee Hyunseung said that the North Korean government controls all gold and confiscates everything. It is not a distribution system. “People collect gold and sell it to meet their needs. Turning a blind eye to this in gold mines and panning centers is common.”
Like elsewhere, the fluctuation of gold prices in North Korea depends on international economic conditions or domestic economic situations, but the country’s gold price is much lower compared to the international market. Forbes magazine reported that on the morning of July 17, the international gold price was $2,472 per ounce.
Lee Hyunseung also mentioned that North Korea’s gold processing industry is not developed, and only those living in North Korea may consider its quality to be good. When they go to another country, they realize that jewelry manufactured abroad is of better quality, so they no longer purchase jewelry produced in North Korea.