Electronic Payments Are a Part of Everyday Life

North Korea Mandates Card-Based Payments as Electronic Payment Systems Expand Nationwide

North Korean authorities enacted the Electronic Payment Law in 2021—revised in 2023—mandating the use of payment cards by institutions and residents. Following a pilot implementation period, farm workers nationwide began receiving the “Jeonseong” card at the end of last year, with their cash distribution payments deposited onto cards rather than paid in cash. Starting early this year, all workers affiliated with institutions and enterprises have also begun receiving their living expenses (wages) via card deposits.

In fact, in a February contribution to Workers (No. 2, 2025), Han Nam-chol, chief secretary of the Sinchon County Party Committee of the Workers’ Party of Korea, stated that “Jeonseong cards were provided to all farm households in the county so that farm workers could directly receive their cash distributions.” North Korea has thus entered an era in which the vast majority of economically active residents receive their living expenses via cash cards and use them for consumption.

In 2020, the Central Bank of the DPRK and the Card Research Institute of the Pyongyang Information Technology Bureau jointly developed and launched the country’s first smartphone-based electronic payment system, Jeonseong. Since then, various institutions and companies have released electronic payment programs such as Gangseong, Ullim, and Samhung, steadily expanding their subscriber bases. The Samhung Electronic Wallet, developed by Samhung Economic Information Technology Company—recently introduced as a top IT enterprise—reportedly has secured several million users.

As a result, North Korean residents can now register cards issued in the names of individuals and enterprises by the Central Bank and commercial banks with online shopping platforms or mobile phones, enabling a wide range of consumer activities.

For several years, North Korean authorities have been strongly promoting what they call the “informatization of finance.” The official justification for this policy push has been to ensure the smooth functioning of financial activities and to strengthen state finances.

Source: Chung Chang-hyun, Director of the Peace Economy Research Institute, “Reading North Korea with Chung Chang-hyun” (News1)