Digital currency adoption takes hold in North Korea as the nation integrates online transactions and automated teller machines (ATMs) into its financial system
In the heart of Pyongyang, electronic payment systems have become the norm, replacing cash transactions in shops, restaurants, public transport, and even for mobile phone recharges. Systems such as Samhung, Jeonseong, and Manmulsang, known as electronic wallets, are widely used across the city and some provincial areas [1][2][4].
This shift towards cashless transactions mirrors trends in other parts of Asia and reflects growing smartphone use, despite North Korea's isolation. A significant development in this digital financial revolution is the launch of Hwawon E-Bank, an online-only bank, around October 2024 [1][2].
Hwawon E-Bank operates much like South Korea's KakaoBank or K-Bank, functioning primarily digitally without physical branches. It has installed ATMs in major department stores, hospitals, and pharmacies across Pyongyang and some provincial areas, with usage reportedly growing [1][2].
Navigating this digital financial landscape is made possible through user-friendly interfaces. For instance, a modal window with options 0, 1, and 2 is available, with option 2 selected by default. Users can cancel and close the window by selecting the 'Escape' option. Additionally, the chapters descriptions and captions can be turned off for a more streamlined experience [3].
Despite the progress, experts caution that the North Korean regime may use these systems to enhance control and monitoring of financial activities, as online transactions are more easily traceable than cash [2][4]. However, detailed operational information about Hwawon E-Bank and the digital platforms remains limited due to North Korea’s closed nature.
This news article has been translated from the JoongAng Ilbo using generative AI.
- The launch of Hwawon E-Bank in Pyongyang, similar to South Korea's KakaoBank or K-Bank, has further propelled the city and some provincial areas towards a digital financial revolution, with electronic wallets like Samhung, Jeonseong, and Manmulsang already widely used for cashless transactions.
- As society increasingly relies on technology, the economy and finance sectors in North Korea are evolving, with the emergence of online-only banks such as Hwawon E-Bank offering user-friendly interfaces for transactions, effectively mirroring trends observed in other Asian societies.
- While improving convenience in everyday transactions, the advancements in North Korea's digital financial sector, such as the introduction of Hwawon E-Bank and smartphone-based payment systems, could potentially lead to a higher level of surveillance and control by the regime due to the traceability of online transactions.
%20into%20its%20financial%20system){kind=link}