[105th Unification Studies Forum] The Rise of the Middle Class in North Korea and Social Changes

Date: Monday, November 18, 2024, 15:00 – 17:00 (KST)

Venue: Online video conference (ZOOM)

Speaker: Jung, Eun-mi (Researcher, KINU),

Moderator: Cho, Dong-Jun (Professor, SNU)

Topic: The Rise of the Middle Class in North Korea and Social Changes

The Institute for Peace and Unification Studies at Seoul National University(IPUS at SNU) hosted the 105th Unification Studies Forum on Monday, November 18, 2024, under the theme of “The Rise of the Middle Class in North Korea and Social Changes”. The Unification Studies Forum is an expansion and reorganization of the Unification Policy Forum, which was held 75 times between 2006 and 2020, and is now in its 104th edition. The forum was moderated by Professor Cho who opened the forum with a welcome speech.

Dr. Jung opened the session by explaining that North Korean society has traditionally been structured around a stratified system based on political background and social classification. This system divides the population into three classes: the core class, the wavering class, and the hostile class, with an individual’s social standing and quality of life determined by their background. While the Kim Jong Un regime has sought to stabilize the system by strengthening policies favoring the core class, the rise of the middle class, driven by marketization and the expansion of the informal economy, has introduced significant changes to the traditional social order.

The middle class in North Korea can be categorized into two groups: the “old” middle class and the “new” middle class. The old middle class comprised individuals who owned means of production and lived relatively prosperous lives through their own labor, such as mid-level farmers or urban petit bourgeoisie. In contrast, the new middle class has emerged amid market reforms and economic transformation. They navigate both formal employment and informal economic activities to achieve economic stability and status. This new middle class is divided into three types: power-based, professional, and commercial middle classes. Power-based middle-class individuals leverage their political capital to generate income, while the professional middle class consists of experts such as doctors, teachers, and researchers. The commercial middle class, on the other hand, is composed of traders and private service providers who have achieved economic success through market activities.

The growth of the middle class has become a key driver of economic and cultural change in North Korea. The development of markets and the informal economy has significantly boosted the purchasing power of this class, fueling the expansion of consumer markets. The middle class increasingly engages in diverse consumption patterns, including high-end appliances, imported food products, and fashion, contributing to the emergence of new lifestyles and greater cultural diversity in North Korea. Notably, the progress in informatization has also played a critical role in facilitating the economic activities and consumption habits of the middle class.

Under Kim Jong Un’s leadership, North Korea has pursued informatization policies to digitize its society. The government has built an internal national network called the “Kwangmyong” intranet and expanded mobile telecommunications, while strengthening education in science and technology. These measures have enabled residents to increase their participation in economic and cultural activities, although challenges persist. Access to the intranet remains limited, with digital disparities between urban and rural areas and between Pyongyang and provincial regions exacerbating social inequalities.

Despite the rise of the middle class, North Korea continues to face significant challenges. The growth of the middle class is constrained by social mobility barriers tied to political background, conflicts between old and new middle classes, and persistent economic inequality. In particular, the economic gap between urban and rural areas, as well as between central and peripheral regions, has hindered the further expansion of the middle class.

The Kim Jong Un regime has introduced legislative and policy measures to address these disparities, including the enactment of the “Law on the Development of Cities and Counties” and the “Rural Development Act,” with the goal of achieving balanced regional development. However, fundamental limitations remain due to international sanctions, resource shortages, and low technological capacity. The uneven progress in informatization further hampers the growth of digital commerce and the electronic economy, limiting the dynamism and openness of North Korean society.

In conclusion, North Korea’s middle class has emerged as a significant social stratum amid the transition toward a market-based and information-driven economy. While the middle class contributes to societal transformation through increased purchasing power and cultural consumption, it continues to face challenges such as class conflict, digital disparities, and regional imbalances. Unless these issues are addressed, the broader development and stability of North Korean society will remain constrained.