North Korea's Wage Hike Crushed by Hyperinflation

The state-set wage system in North Korea has been rendered meaningless due to hyperinflation. The system, which was originally designed to provide a living wage for workers and their families, collapsed during the economic crisis of the 1990s.

In late 2023, the Kim Jong-un regime raised state enterprise wages by more than tenfold, from approximately 1,500-2,500 won to 35,000-70,000 won. This increase was accompanied by a provision of around 5 kilograms of grain per month for free.

At first, this change seemed to bring relief to the population, as workers could now afford to purchase basic necessities like white rice and corn. However, prices at state grain distribution stores began to skyrocket, wiping out the gains made by the wage increase.

Hyperinflation has surged 6.5-fold for white rice and 5.5-fold for corn since the increase in wages. This devastating effect on the economy has destroyed the regime's plan to return to a pre-1990s model, where workers could make a living solely on state-set wages.