Jangmadangs have led to major changes in the North Korean economy, and where North Korean citizens go to buy not only necessities but also other items, like luxuries as well. With the advent of jangmadangs and the necessity of buying and selling in these informal marketplaces has come the rise of capitalism and marketization in North Korea. North Korea is no longer communist or even really the socialist society they are often portrayed as the majority of the population often has little to no support from the North Korean government. Instead, the majority of the population heavily relies on buying and selling goods at jangmadangs, as well as bribing authorities for survival.
Following the 1990s famine, many ordinary citizens in North Korea lost their economic stability and were driven to extremes as a way to survive. In order to survive, many in North Korea began to sell produce that they grew on small personal farms1. These small businesses slowly grew to form both formal and informal marketplaces across North Korea. While jangmadangs began as small places to sell produce in the past two decades, despite authorities' attempts, jangmadangs have rapidly grown in size and scope.
In 2009, the North Korean government initiated a currency reform that replaced the former North Korean won with a new won and threw the North Korean economy into disarray, causing major inflation and for many to lose their fortunes overnight2. Despite this attempt to curb the growth of jangmadangs and the rise of marketization, jangmadangs have become one of the main ways for North Koreans to survive and earn a living, with an estimated 83% of people over 16 participating in buying and selling through jangmadangs3. Jangmadangs also now make up an estimated 90% of North Korean Household expenditures, with purchases at official government dispensaries and businesses falling below 10%.4
Buying, selling, and smuggling of jangmadangs have all become an important part of the North Korean economy. Bribery, in particular, has now become a vital part of survival in North Korea. Bribery of officials allows for jangmadangs to exist and thrive in North Korea. One North Korea defector told the United Nations, “Bribery is effective in North Korea. One cannot lead a life in North Korea if he or she does not bribe his or her way.”5
In addition to bringing capitalism to North Korea, jangmadangs have also caused the North Korean government to lose some of its control of the economy. While officially North Korea is a centralized command economy with a heavy focus on the Juche principle. What this means is that the Workers Party of Korea (the party of Kim Jong-Il) makes all economic decisions for North Korea. The Workers' Party of Korea owns all means of production and plans economic priorities and output. This is done through a variety of ways, including mandatory service and labor for all North Koreans, with women typically having to serve the state for seven years and men for ten6. It is also done through tight control of the currency, with several different policies taken to control the value and use of the North Korean won, including the 2009 currency reform and extremely tight and controlled management of the won by the North Korean central bank. As of February 2025, North Korea holds a 3.0 out of 100 in terms of economic freedom according to the Heritage Foundation for economic freedom, placing last in terms of economic freedom7.
Despite these restrictions and control over the economy in recent years, with the growing knowledge and presence of foreign ideas and media, jangmadangs and North Korean defectors have played an increasing role in shaping North Korean economics and buying habits. There has been an increase in money being wired into North Korea by people outside of the country, most often North Korean defectors sending money to their families still in North Korea. It is estimated that about 60% of defectors send money to their family back in North Korea, and that there are over a thousand money transfers to North Korea every year8. Additionally, the role of foreign aid and information on foreign aid now plays a major in when people are buying and selling goods. Defectors and those outside of North Korea will alert family and friends when to expect market shocks, either because of foreign food aid entering the country or shortages, so that those in North Korea know when to buy rice and other staples9. Outside news and influence now have a major impact on the buying and selling patterns of those within North Korea, which play a major role in the domestic economy, with a majority of households relying on them.
An unintended social and economic impact of jangmadangs and the fact that the majority of North Koreans rely on them is the slightly elevated status they have given women and their role in North Korean society. Women are largely barred from state-sponsored jobs and careers forced into the role of housewives. This means that those participating in jangmadangs are typically women who, on average, make 80 times as much as those who work in the formal sector10. This shift in women’s roles and women becoming the main, although unofficial, breadwinners has also led to more women defectors being exposed to foreign media as they are the ones doing the majority of the buying and selling for households.
1.A Changing North Korea, (Liberty in North Korea)
2.Noland, Marcus, North Korea’s Failed Currency Reform, (PIIE, 2016)
3.(Reiss, Jangmadang Marketization in North Korea 2021)
4.(Reiss, Jangmadang Marketization in North Korea 2021)
5.A Changing North Korea, (Liberty in North Korea)
6.(Most North Korean Refugees Are Women. Here’s Why. 2019)
7.( Index of economic freedom: All country scores: The Heritage Foundation 2025)
8.Baek, North Korea's Hidden Revolution: How the Information Underground is transforming a closed society 2017)
9.Baek, North Korea's Hidden Revolution: How the Information Underground is transforming a closed society 2017)
10.(Reiss, Jangmadang Marketization in North Korea 2021)