{"id":922805,"date":"2026-07-09T08:53:19","date_gmt":"2026-07-09T08:53:19","guid":{"rendered":"https:\/\/www.europesays.com\/us\/922805\/"},"modified":"2026-07-09T08:53:19","modified_gmt":"2026-07-09T08:53:19","slug":"the-logistics-of-funding-north-korean-e-wallets-38-north-informed-analysis-of-north-korea","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/922805\/","title":{"rendered":"The\u00a0Logistics\u00a0of\u00a0Funding\u00a0North Korean\u00a0E-Wallets\u00a0 – 38 North: Informed Analysis of North Korea"},"content":{"rendered":"

Smartphone-based e-payment systems appear to be growing quickly in Pyongyang. Several competing payment\u00a0platforms<\/a>\u00a0in conjunction with\u00a0recent\u00a0accounts<\/a>\u00a0from\u00a0visitors to the\u00a0capital\u00a0suggest the\u00a0QR\u00a0code-based platforms are widely used and\u00a0accepted, from department stores down to street vendors.\u00a0<\/p>\n

Information about the spread of\u00a0e-payment\u00a0platforms outside of\u00a0the capital\u00a0is much more\u00a0limited, but data obtained by NK\u00a0TechLab\u00a0indicates\u00a0there is\u00a0a push to\u00a0take the networks nationwide.\u00a0<\/p>\n

The data covers\u00a0lists\u00a0the locations where people can deposit money into\u00a0Samhung\u00a0e-wallet accounts\u00a0betwee\u00a02022 and 2025.\u00a0Samhung\u00a0operates one of the largest\u00a0smartphone-based payment networks in the country and since 2022, the network has\u00a0more than tripled in size. Growth was initially centered on\u00a0Pyongyang\u00a0but now appears to be\u00a0focused on\u00a0the provinces.\u00a0<\/p>\n

Expanding use of electronic payments, which can be done in both local and foreign currencies, gives the state\u00a0more insight into the domestic economy,\u00a0and\u00a0helps it\u00a0both\u00a0regulate prices and collect taxes.\u00a0It can also be used as a form of surveillance, although the primary incentive is\u00a0likely\u00a0the\u00a0economic\u00a0benefits. \u00a0<\/p>\n

\"\"<\/a>Figure 1. The Samhung E-wallet app (Source: NK TechLab)<\/p>\n

Background<\/b>\u00a0<\/p>\n

Electronic payment services began in North Korea\u00a0around 2011 when the\u00a0Foreign\u00a0Trade Bank issued the Narae (\ub098\ub798) debit card. The Central Bank followed in 2015 with the\u00a0Jonsong\u00a0(\uc804\uc131) Card,\u00a0but accounts suggest both were\u00a0relatively unpopular\u00a0due to distrust of banks.\u00a0<\/p>\n

Citizens began using cellphones to make micropayments in the late 2010s\u00a0by\u00a0exchanging\u00a0cellular airtime credits\u00a0in lieu of money. This ad-hoc and\u00a0unregulated\u00a0payment system was closed by the state in 2019.\u00a0<\/p>\n

The\u00a0Electronic Payment Law (\uc804\uc790\uacb0\uc81c\ubc95) of 2021\u00a0allowed non-banking entities,\u00a0such as IT companies,\u00a0to offer payment services under supervision of the Central Bank\u00a0and this appears to have been the\u00a0trigger\u00a0for\u00a0many of the platforms.\u00a0At least\u00a0seven\u00a0competing\u00a0platforms\u00a0have been\u00a0observed:\u00a0Samhung\u00a0(\uc0bc\ud765),\u00a0Manmulsang\u00a0(\ub9cc\ubb3c\uc0c1),\u00a0Huinnun\u00a0(\ud770\ub208),\u00a0\u00a0Jonsong, Narae,\u00a0Saebyol\u00a0(\uc0c8\ubcc4)\u00a0and\u00a0Apnal\u00a0(\uc55e\ub0a0).\u00a0<\/p>\n

Video from visitors\u00a0to North Korea\u00a0shows<\/a>\u00a0QR codes are increasingly present at many points\u00a0of sale. In the case of a street food vendor or market stand, it might be a single code for a single\u00a0platform, but\u00a0at larger stores multiple\u00a0platforms accepted. \u00a0<\/p>\n

\"\"Figure 2. A QR code on a snack cabinet at the Yanggakdo International Hotel (Source: \u041a\u043e\u043b\u043b\u0435\u043a\u0442\u0438\u0432\/YouTube<\/a>)<\/p>\n

Deposit Network<\/b>\u00a0<\/p>\n

The e-wallet\u00a0systems are\u00a0backed by\u00a0a network of\u00a0locations where users can deposit cash into their accounts.\u00a0In\u00a0late 2022, there were around 200 such locations\u00a0in the\u00a0Samhung\u00a0network,\u00a0but by early 2025,\u00a0the number\u00a0had risen to over 700.\u00a0<\/p>\n

The vast majority of\u00a0these locations are in Pyongyang. The city\u00a0had\u00a0149 deposit points in late 2022, rising to\u00a0576 in early 2025.\u00a0In\u00a0the rest of the country, the number of locations\u00a0jumped\u00a0from 74 to 133.\u00a0Most of the expansion in Pyongyang came between 2022 and 2024,\u00a0while\u00a0the pace of growth outside of Pyongyang picked up in 2024.\u00a0<\/p>\n

Perhaps more\u00a0striking than the number of locations has been the geographic spread.\u00a0In Pyongyang,\u00a0there are\u00a0multiple deposit locations in each district\u00a0but outside of the city,\u00a0the network\u00a0is less\u00a0concentrated.\u00a0For the most part,\u00a0the\u00a0network has grown\u00a0to include at least one\u00a0location\u00a0in every\u00a0county.\u00a0While one location per county might not meet actual demand,\u00a0it has\u00a0meant a rapid expansion in areas covered\u00a0from 2024 to 2025\u00a0and suggests\u00a0adoption of these technologies\u00a0is, indeed,\u00a0growing.\u00a0<\/p>\n

\u00a0<\/p>\n

That said, some of the locations\u00a0that existed\u00a0in the 2022\u00a0data\u00a0do not exist\u00a0in the 2025 data. It is unclear if this is due to the service being removed or\u00a0incomplete data.\u00a0<\/p>\n

Notably, the 2025 dataset\u00a0lists\u00a0a deposit point in every county\u00a0of\u00a0North\u00a0Hwanghae\u00a0and\u00a0Ryanggang\u00a0province and all districts of\u00a0Nampho\u00a0City, in addition to the comprehensive coverage of Pyongyang. Based on the 2025 dataset, several provinces are lagging in adoption including North Hamgyong,\u00a0where\u00a0only Chongjin\u00a0appears to be\u00a0covered.\u00a0<\/p>\n<\/p>\n

More than half of the locations are IT\u00a0Exchanges\u00a0(\uc815\ubcf4\uae30\uc220\uad50\ub958\uc2e4), which are physical locations\u00a0where\u00a0North Koreans\u00a0can\u00a0get help with their phone\u00a0and\u00a0download new apps\u00a0and content.\u00a0<\/p>\n

These\u00a0service centers\u00a0are not\u00a0run by Samhung, so they\u00a0likely handle\u00a0deposit services for other e-payment apps too.\u00a0This theory is supported by\u00a0a\u00a0poster<\/a>\u00a0for the\u00a0Huinnun\u00a0e-wallet\u00a0that mentions IT service centers as\u00a0deposit locations.\u00a0<\/p>\n

Only a handful of the charge points are banks or post offices, which\u00a0points to the\u00a0root of\u00a0Samhung\u00a0and most other e-payment apps being in North Korea\u2019s technology sector rather than the banking sector.\u00a0<\/p>\n

Two of North Korea\u2019s banks,\u00a0the Central Bank and the\u00a0Foreign\u00a0Trade Bank,\u00a0operate\u00a0their own cash cards.\u00a0The\u00a0cards,\u00a0Jonsong\u00a0and Narae,\u00a0respectively, have companion e-payment\u00a0apps\u00a0but comparable data\u00a0for\u00a0their deposit networks is not available.\u00a0<\/p>\n

Dollars Accepted Here<\/b>\u00a0<\/p>\n

One of the most interesting aspects of the e-payment platforms is that they allow users to\u00a0hold\u00a0more than just North Korean won.\u00a0The cash is converted to foreign exchange\u00a0(FX)\u00a0won\u00a0(\uc678\ud654\uc6d0),\u00a0a virtual currency that is used to\u00a0represent\u00a0foreign currencies and is worth about\u00a0110\u00a0FX won\u00a0to the US dollar.\u00a0<\/p>\n

Historically, the US dollar has bought approximately 8,000 North Korean won,\u00a0although this rate has\u00a0substantially changed\u00a0in recent years and is\u00a0now around\u00a063,000 won<\/a>\u00a0to the dollar.\u00a0<\/p>\n

\"\"<\/a>Figure 3. The Samhung E-wallet allows for domestic and FX won holdings (Source: NK TechLab)<\/p>\n

However, the FX\u00a0won and\u00a0conventional North Korean\u00a0won (\ub0b4\ud654\uc6d0) are not\u00a0interchangeable\u00a0and goods\u00a0are priced in one or the other.\u00a0The FX won rate is set by the state and appears to be a lot more stable.\u00a0<\/p>\n

Of the locations in the 2022 dataset, all accept domestic won deposits,\u00a0and the majority also accept foreign currency. In 2023,\u00a0a handful of\u00a0deposit points\u00a0appeared\u00a0to\u00a0accept\u00a0only foreign currency. As of early 2025,\u00a0this had grown to\u00a0102 locations that only accept foreign currency deposits. All are ATMs.\u00a0<\/p>\n

Of the other locations, 341 accept\u00a0only North Korean won,\u00a0and\u00a0the remaining\u00a0266 locations accept both foreign and domestic currency deposits.\u00a0<\/p>\n

The widespread ability to deposit\u00a0foreign\u00a0currency illustrates the state\u2019s effort to capture\u00a0foreign\u00a0currency cash circulating in the economy. When users pay it into electronic accounts, the hard cash becomes available to the state\u00a0for\u00a0its use while the user gets an electronic credit that can be used to\u00a0purchase\u00a0goods\u00a0at a later date.\u00a0<\/p>\n

ATM Networks<\/b>\u00a0<\/p>\n

ATM networks\u00a0also appear to be\u00a0spreading alongside the growth of e-payment services.\u00a0Hwawon\u00a0ATMs, run by\u00a0Hwawon\u00a0Electronic Bank (\ud654\uc6d0\uc804\uc790\uc740\ud589), were\u00a0in\u00a015 locations in late 2024, but\u00a0a\u00a0more recent\u00a0pamphlet\u00a0advertising the network posted on Chinese social media\u00a0indicates\u00a0they are\u00a0now\u00a0in at least\u00a040 locations. Many are in Pyongyang but the pamphlet notes:\u00a0\u201cATMs are being introduced not only in Pyongyang but also nationwide.\u201d\u00a0<\/p>\n

Two other ATMs have also appeared in tourist videos. One carries the Narae name and another the\u00a0Taesong\u00a0Bank (\ub300\uc131\uc740\ud589)\u00a0name. They\u00a0appear to have\u00a0similar or identical interfaces.\u00a0Like most\u00a0North Korean\u00a0ATMs, they have a card slot, 2D barcode scanner,\u00a0receipt\u00a0printer\u00a0and keypad.\u00a0<\/p>\n

The screens of all three ATMs advertise the ability to use the machines to fund electronic wallets. \u00a0<\/p>\n

\"\"Figure 4. A Taesong ATM in Pyongyang (Image: \u041a\u043e\u043b\u043b\u0435\u043a\u0442\u0438\u0432\/YouTube<\/a>)<\/p>\n

Conclusion<\/b>\u00a0<\/p>\n

The data provide further evidence that the state is pushing the development and use of electronic money platforms in North Korea, not just in Pyongyang but across the entire country. For the state,\u00a0electronic systems\u00a0bring\u00a0some efficiency to the economy, allow for price\u00a0monitoring\u00a0and control, and provide the data needed to collect taxes.\u00a0The support of foreign currency in the network helps the state absorb hard cash in the economy, which can then be used by the state for its own business.\u00a0Electronic payments can also add an\u00a0additional\u00a0layer of surveillance to the everyday lives of North Koreans, although\u00a0the primary\u00a0objective\u00a0appears to be\u00a0economic.\u00a0\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Smartphone-based e-payment systems appear to be growing quickly in Pyongyang. Several competing payment\u00a0platforms\u00a0in conjunction with\u00a0recent\u00a0accounts\u00a0from\u00a0visitors to the\u00a0capital\u00a0suggest the\u00a0QR\u00a0code-based…\n","protected":false},"author":3,"featured_media":922806,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[17],"tags":[60892,101066,79,46801,372436,611,158,67,132,68],"class_list":["post-922805","post","type-post","status-publish","format-standard","has-post-thumbnail","category-mobile","tag-atms","tag-e-wallet","tag-economy","tag-electronic-payments","tag-martyn-williams","tag-mobile","tag-technology","tag-united-states","tag-unitedstates","tag-us"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116889179313482065","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/922805","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=922805"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/922805\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/922806"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=922805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=922805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=922805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}