Donju

It refers to emerging capitalists who have accumulated wealth in the black market and Jangmadang (North Korea's free market) since the economic crisis in North Korea.

The prolonged economic downturn and crisis in North Korea resulted in the paralysis of the country's food distribution system, a crucial component of its economy. Consequently, black markets emerged in the informal sector. The growth of these markets signifies a shift away from the centrally controlled "socialist distribution system" and weakens the government's currency control. Consequently, individuals who have amassed initial capital from the black market, have gained prominence. The term "Donju" primarily refers to the class of people who accumulate wealth by utilizing capital in commercial and business activities.

While the term "Donju" generally refers to emerging capitalists in North Korean society, it is important to note that not all of them accumulate wealth solely from black markets or engage exclusively in commercial activities. During the expansion of the black market in North Korea, those who possessed initial capital primarily belonged to the social middle-upper class. This included laborers who earned foreign currency, high-ranking officials of the Workers' Party of Korea, and individuals who acquired wealth overseas through their relatives. While some individuals accumulated initial capital through commercial activities in the black market, the term "Donju" encompasses a broader range of individuals beyond this specific group.

Even within the Donju who have acquired initial capital, the methods of wealth accumulation vary. They are not only involved in the financial sector but also actively participate in the real economy through various investment activities. Initially, their investments were focused on local transportation, such as intercity buses, taxis, and logistics, as well as distribution and retail sectors, including national outlets. However, over time, they have expanded their investment horizons to include sectors such as construction, mining, and manufacturing. They invest their funds in factories and industrial facilities, sometimes even taking part in direct management. Additionally, they expand their economic activities by hiring their own workforce under the guise of these factories or industrial sites, and they contribute a certain percentage of the profits back to the respective institution or industrial site.

These affluent Donju play a crucial role in providing the necessary currency for large-scale economic development in resource-limited North Korean society. Moreover, they engage in informal trading activities that the state finds challenging to directly participate in, thereby establishing a symbiotic relationship with the ruling class. Despite the state's efforts to exert censorship and control over the Donju, they continue to wield influence as prominent actors in North Korea's economic landscape through their involvement in informal networks and the use of bribery.

Related Keywords: North Korea's Markets, Distribution System, State Price/Market Price, State Exchange Rate/Market Exchange Rate