Marketing In North Korea (25)
Why North Korea Honors a Christian Capitalist: The Story of Paek Son-haeng
Jeon Byung-kil
Senior Consultant of YESInnovation
former of Secretary General of UniKorea Foundation
In Korea, the idea of businesses helping society goes back hundreds of years. In the past, Koreans had community systems like “Dure” and “Hyang-yak” that were all about sharing and helping neighbors. This spirit of community giving—called “Taedong,” meaning great unity—has influenced how Korean companies think about their role in society even today.
North Korea, even though it is a socialist country, also honors people from the past who helped others. One of the most respected figures is Paek Son-haeng, a woman who lived in Pyongyang during the time Korea was under Japanese rule.
Who Was Paek Son-haeng?
Paek Son-haeng 1848–1933) was what we might call a social entrepreneur—someone who uses their wealth and business skills to improve society. She became a successful and generous businesswoman in Pyongyang. After losing her husband at age 16, she lived on her own and built her fortune from scratch.
In 1917, she bought land near Mandal Mountain in what is now Gangdong County, across from the Taedong River. She didn’t know it at the time, but this land was rich in limestone, the key ingredient used to make cement. When Japanese companies started mining there, the land’s value exploded—rising more than 10 times in price.
Later, a cement factory was built on that land during Japanese rule. Today, that same area is home to the Seungho Cement Factory, one of North Korea’s major producers. Paek Son-haeng’s smart decision helped her grow from a local landowner to one of the wealthiest people in Pyongyang.
Using Wealth for Good
Even though she became rich, Paek Son-haeng didn’t keep the money for herself. She believed in giving back, especially through education. In 1919, the March 1st Independence Movement—a major protest against Japanese rule—deeply moved her. Five years later, in 1924, she made a big decision: she would donate all her wealth to social causes.
She gave large pieces of land to help build schools:
• 26,000 pyeong (about 86,000 square meters) to Gwangseong School
• Another 26,000 pyeong to Sunghyun Girls’ School
• She also donated property to Changdeok elementary School, founded by an American missionary, Samuel A. Moffett
In total, Baek donated land and money worth 180,000 won at the time. That would be worth over 20 billion won (more than 15 million USD) today.
What makes her story even more amazing is that she couldn’t read Hangul (the Korean alphabet) or even numbers. Yet she had the vision and courage to use her fortune to help future generations.
Why North Korea Respects Paek Son-haeng , a Christian Capitalist
Paek Son-haeng was a Christian and a capitalist—someone who made a lot of money through private business. Normally, people like her would not be accepted in North Korea, especially after the country was divided from South Korea. After the division, North Korea banned private property and religious activities, and many people left the country to find religious freedom in the South.
So it may seem surprising that North Korea speaks positively about Baek Sun-haeng. But they do.
Kim Il-sung’s Praise
North Korea’s first leader, Kim Il-sung, wrote about Paek Son-haeng in his autobiography With the Century. He said, “There are many rich people who create social problems with their bad behavior, but not all rich people are like that.” He pointed to Paek Son-haeng as a good example of a wealthy person who used her money to help society.
In North Korea, where Kim Il-sung’s words are treated like law, this means no one is allowed to criticize her publicly.
Rediscovering Her Story
For many years, Baek’s name wasn’t well known in North Korea. But that changed in the mid-1990s, when Kim Il-sung’s autobiography was published. After that, her story began to appear in North Korean newspapers and TV programs.
In 2006, North Korea made a documentary about her life. They also reopened a memorial hall that had been built in her honor in the 1930s. This was a time when South and North Korea were having more cultural and economic exchanges, and many South Korean businesspeople and religious leaders were visiting the North.
Some believe that North Korea promoted ’s Paek Son-haeng story to create a positive image for those visitors. The idea was simple: showing respect for someone who was both religious and successful might lead to economic support from the South.
A Shared Value Between North and South
Paek Son-haeng is now seen as a rare “shared value” between North and South Korea. People on both sides of the border admire her for her generosity.
Today, as the world talks more about corporate responsibility—the idea that businesses should do good for society—Baek’s story feels even more important. She is a great example of someone who used her wealth to give back. This is called “creating social value.”
Her legacy can be a helpful tool in the future for North-South economic cooperation. Her story also inspires public campaigns and positive branding based on values like kindness, generosity, and helping others.