North Korean trading companies are expanding their foreign currency-earning activities by exporting contract-manufactured products made with prison labor to China. Recently, a major North Korean trading company received such an order.
Speaking anonymously, a source in North Hamgyong province said on Aug. 14 that the Rason branch of the Korea Sinhung Trading Corporation “received a large-scale handicraft order and has begun full-scale production.” He added that the products “will be manufactured at reeducation or political prison camps.”
Since July 26, the company has been importing necessary supplies through Chinese traders and transporting them directly to the prison camps. The source said the Korea Sinhung Trading Corporation agreed to use prison labor when signing the contract with Chinese traders.
Last year, Daily NK reported that about 30% of contract manufacturing items are produced using forced prison labor. Given that North Korean companies disclose this practice when signing deals, it’s likely widespread.
The Rason branch has been importing knitting supplies, including croquet hooks and yarn of various colors. While distributing these to the camps, the company emphasizes adherence to Chinese specifications, “scolding” the camps and insisting there must be no defective products.
North Korean trading companies prefer using prison labor as it’s free and easy to manage. Essentially, these companies and the North Korean authorities are profiting from forced labor.
The trading company plans to export completed items to China monthly over the next three months, suggesting smooth trade operations between the two countries.
“The Korea Sinhung Trading Corporation received many orders for crochet goods, so it will likely make a lot of foreign currency profits,” the source said. “The production and export of processed items at reeducation camps and political prison camps will likely increase going forward.”
Daily NK works with a network of sources in North Korea, China, and elsewhere. For security reasons, their identities remain anonymous.
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