ECONOMIC CONDITIONS AT THE KILCHU MARKET PLACE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R016300320008-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 11
• Document Creation Date: December 14, 2016
• Document Release Date: May 23, 2003
• Sequence Number: 8
• Publication Date: February 5, 1953
• Content Type: REPORT

Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2
I C11-iCULATE
COUNTRY Korea
INFORMATION REPORT REPORT NO.
CD NO.
DATE DISTR. 5 Feb. 1953
SUBJECT, Economic Conditions at the Kilchu Market Place NO. OF PAGES 11
DATE OF
25X1INFO.
25X1PLACE
ACQUIRE)
25X
NO. OF ENCLS.
(LISTED BELOW)
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
On ]J October 1952 the Hyang Kyo.Kol market place in Kilchu
(129-20, 40.58) (FA-2835) was in a valley at FA-292332 in an area within
a circumference of approximately seventy meters, None of the buildings
were stationery. The temporary wood-.framed kiosks were covered with
straw bags and were limited by law to a space of four square meters.
Twenty-four stalls were used for dry goods, 50 for grain., ]i. for fish
and 26 for. miscellaneous commodities. Many farmers came to the market
daily and sold their produce in the open ground area.
2. The shops were stocked with a variety of native Korean products and
goods from Communist China, the USSR, Czechoslovakia, Japan, and the
United States. Commodities from China had been smuggled and were sold
"under the counter" in small quantities. These items were usually
obtained from the smugglers in exchange for machinery and for opium
secretly produced in remote mountain areas of North Korea. Iihen smugglers
were caught, all their goods were confiscated. Smugglers picked up
for a third offense were sent to forced labor camps in Manchuria.
The shop-keepers' average capital investment was about 70,000 North
Korean won, with the largest investment about 100,000 won. Each merchant
paid a city tax of 30 won per day for using the market place. He also had
to pay a dealer's tax that has increased sharply since July, forcing many
smaller merchants out of business. In July the dealer's tax averaged
about 6,000 won a month. In October, the tax had been increased to
about 22,000 won monthly. Some of the merchants forced to.close became
peddlers. The tax for this type of business was about 2,000 won.
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OF THE UNITED STATES, WITHIN THE MEANING OF TITLE 18, SECTIONS 793
AND 794, OF THE U.S. CODE, AS AMENDED. ITS TRANSMISSION OR REVE-
LATION OF ITS CONTENTS TO OR RECEIPT BY AN UNAUTHORIZED PERSON IS
PROHIBITED BY LAW. THE REPRODUCTION OF THIS FORM IS PROHIBITED.
STATE I x
DISTRIBUTION CQMN V$o
#PACFL S#
CINCFE#
X1 FEA.FA YCo 7
25X1
25X1
25X1
25X1
Approved For Release 2003/08/13 : CIA-RDP82-00457R016300320008-2
 s
Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2
4. On 14 October 1952 the prices of food and other commodities at the Hyang
Kyo Kol market in Kilchu were as stated in the following list,l Grain
prices, as quoted, were slightly higher than consumers guild prices.
However, market merchants compensated for this difference by giving
more liberal weights and measurements. This made prices in both places
virtually the same. All Chinese items were smuggled into North Korea.
Item2
Unit of
Measurement3
'Rholesale
Price
Retail
Price
Rice
1 large mal
1, 750 NK won
1, 800 NK won
Millet
1 large mal
1,570
1,600
Barley
1 large mal
980
1,000
Wheat
1 large mal
960
980
Sorghum
Flour (S)
1 large mal
1 kilogram
790
Unknown
800
Beans
1 large mal
780
800
Red Beans
1 large mal
780
800
Bean Oil
1 large mal
Unknown
2,000
Bean Sauce
1 kilogram
Unknown
40
Bean Cakes
7 kilograms
320
350
Wine
1 large mal
Unknown
900
Salt
1 mall'
Unknown
1,000
Potatoes
Radishes
1 large mal
1 kilogram
590
Variable
600
Cabbage
Onions
1 kilogram
1 kilogram
Variable
Variable
80
Garlic
Beef
Pork
100 cloves
1 kilogram
1 kilogram
Variable
Variable
Variable
800
.
Eggs
1
Variable
15
Salt Mackerel
Variable
130
Dried Pollack
Variable
500
Sea Laver
(seaweed)
Variable
480
Apples
SECRET
5 . 8
8 10
25X1
Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2
 Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2
Item2
Peaches
Unit of.
Measurement3
b, Restaurant Prices
31holesale
Price
Retail
Price
5NKwon
8 NK won
25X1
Noodles
Rice
Rice with meat
1 bowl
1 bowl
1 bowl
100
150
150
Hotel room
1 night
50
Hotel room
1 night with two meals
100
10
Hair cut
Horse-.cart hire
Cheongjin to Kilchu (3-day trip)
10,000
Coolie hire
1 day with meals
300
da Livestock
Plowing ox
1 head
50, 000
Cow
1 head
ILO, 000
Calf (1 year old)
1 head
7,000
Pig (1 year old)
1 head
2,500
Chicken
1
500
e. Clothing
'den's socks
1 pair 110
150
Men's socks (C)
Men's socks (C)
1 pair Unknown
I pair Unknown
250
(second quality)
Men's socks (CC)
1 pair Unknown
200
Rayon stockings
1 pair 90
100
Cotton gloves
1 pair 170
180
Leather boots (C)
1 pair 3,100
3,500
Leather shoes
1 pair 3,700
3,800
(men's) (C)
Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2
 Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2
-4 -
25X1
Item2
Measurement3
Iholesale
Price
Retail
Price
Leather shoes (C)
1 pair
1, 700 NK won
1, 800 NK won
(children's)
Basketball shoes
1 pair
Unknown
5,000
(cc)
Tennis shoes (CC)
1 pair
Unknown
3,000
"en's rubber shoes
1 pair
1,850
1, 900
.Women?s rubber
1 pair
1,150
1.9500
shoes
Children?s rubber
1 pair
1,170
1,200
shoes
Rubber overshoes
1 pair
Unknown
2,300
(S)
Leather belt (C)
(second hand)
f. Dry Goods
Unknown
Cotton cloth
20 feet
3,000
3,200.
Cotton sheeting
40-yard bolt
30,600
31,000
(Cock brand) (CC)
Cotton sheeting
1i2-yard bolt
26, 600
27,000
(Barley brand) (CC)
Cotton sheeting h0-yard bolt 30,600
31,000
(Special brand) (CC)
Black cotton cloth
h1-yard bolt
29,600
30,000
(cc)
Cotton gauze
ho-yard bolt
18, 600
19,000
Lining material
20-yards
1,100
Cotton batting
1 kwan
3000
3,500
(used)
Coarse linen
20 feet
1,800
2,000
Linen gauze (CC)
40 feet
21300
2, 600
Rayon
20 meters
6,000
6,200
Terry cloth
1
950
1,000
towel (CC)
Terry cloth towel
1
650
700
(medium)
Cotton thread (CC) 3,000 meters 3000
3,100
Hand towel
1
550
600
Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2
 Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2
Item2
Unit of
Measurement3
71holesale
Price
Retail
Price
Fuel
Gasoline
1 drum
70,000 NK won
80,000 NK 'won
Petroleum
1 drum
Unknown
95,000
Charcoal
1 bundle
Unknown
b.8o
Wo od
1 caztload
Unknown
1, 200
Pine branches
1 cartload
Unknown
1,000
Carbide
1 kwan
Unknown
b.8o
Soda (sic)
1 kwan
1,700
2, 000
Penicillin (CC)
20,000 units5
Unknown
2, 500
Penicillin (US)
20,000 units5
Unknown
3,000
Streptomycin (US) 1-ounce bottle
(powdered)
Unknown
7,500
Sulphadiazine
1 tablet
(5 grains)
100
is Writing Materials
Writing paper
1 sheet
95
Note book
1
45
50
Lead pencil
1
8
Lead pencil (C)
1
Unknown
60
Colored crayon
pencil (C)
1
Pen points
100 (box)
300
330
Lampblack ink
1 stick
40
15
Blue ink
1 bottle
27
30
Writing brush
1
Unknown
130
Fountain pen (CC)
1
950
1,000
J4 Cosmetics and Notions
Face powder (CC)
1. small box
310
SECRET
25X1
Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2
 Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2
SECRET
25X1
-6
-
Unit of
iholesale
Retail
Item
2
Measurement3
Price
Price
Face cream
1 jar
430 NK won
500 NK von
Vanishing cream
1 jar
Unknown
11000
Hair tonic (CC)
1 small bottle
480
500
Tooth paste
1 tube
55
60
Tooth paste (CC)
1 tube
320
340
Tooth brush.
1
58
60
Tooth brush
(second quality)
1
23
25
Toothbrush (CC)
1
2.'000
2,1006
Toilet soap
1 bar
Unknown
100
Toilet soap (CC)
1 bar
300
310
Comb
1
110
150
Hair pins
100
200
210
Pocket mirror
1
48
50
k. Smoking Supplies
Tobacco
1 tin
70
100
Tobacco (S)
1 tin
Unknown
200
Tobacco (CC)
1 tin
300
330
Book matches
1 book
Unknown
150
Book matches (CC)
1 book
200
250
Lighter flint
(US and J)
1
Unknown
50
to Miscellaneous Articles and Materials
Light bulb
~6o watt)
Light bulb
(100-watt)
Light bulb 1
(100-watt) (CC)
550 600
1,1450 4500
1,1450
1, 500
Sewing needle (CC) 1 packet 10,000 11,0006
Sewing machine 1
needle
Unknown
700
Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2
 25X1
Approved For Release 2003/08/13 :
CIA-RDP82-00457R016300320008-2
-7-
I
2
Item,
Unit of
Measurement3
Molesale
Price
Retail
Price
Saw
1
Unknown
500 NK won
Spikes (!-inch)
Nails (2-inch)
Laundry soap
1 kwan
1 kwan
1 bar
Unknown
Unknown
Unknown
3, 7006
6, ooo6
Old newspapers
1 kwan
Unknown
380
Old magazines
1 kwan
Unknown
380
Leather brief case
(second hand) (C)
1
Unknown
5,000
SuitQ t (C)
(second hand)
1
Unknown
13,000
Bicycle tires
(with tubes) (CC)
1 pair
Unknown
2,3006
Raw rubber?
1 kwan
Unknown
13,0006
Pure gold
(from any origin)
3.75 grams
60,ooo
5. On 13 October 1952 the consumers guild department store of Kilchu was in
the Hyang Kyo Kol market place at point-EA-291333. ;'his store had three
employes, one in charge of'cloth and miscellaneous goods,one incharge
of dry grain and beverages, and a third in charge of-vegetables, fishy
and supplies of this type. Clothing was brought to the store from the
Kilchu National Department Store warehouse at EA-291333. Grain was
brought in from the Onsuptyong (129-22, II.1-O1) (EA-31t6) railroad
station. The source of other supplies was undetermined.
6. The consumers guild store had no warehouse of its own. All available
items were displayed in the store. The quantities of these goods
were so small that their prices had no effect on free market prices.
Actually the reverse was true and free market prices influenced those
in the consumers guild store. This store often purchased supplies from
independent dealers to keep up the stock.
7. Prices in the Kilchu consumers guild store on 13 October 1952 were:
a. Food
Item2
Rice
"/heat
Unit of
Measurement
Sorghum
Flour (S)
Soy beans.
Potato flour (CC)
9 pounds
9 pounds
9 pounds
1 kilogram
9 pounds
1 kilogram
870 NK won
650
600
120
870
Approved For Release 2003/08/13 : CIA-RDP82-00457R016300320008-2
 Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2
-8-
25X1
Item2
Unit of
Measurement3
Price
Bean oil
Bean sauce
Soy lpauce
..18 pound
1 kilogram
1.8 pound
50
Wine
1.8 pound
1,1706
Salt
9 pounds
470
Green unions
1 kwan
80
Red peppers
9 pounds
400
Egg plant
1 kilogram
23
White turnips
1 kilogram
80
Beef
Pork
Dried mackerel
1 kilogram
1 kilogram
2
100
Dried seaweed
1 bundle
450
Apples
1 kilogram
40
Pears
1 kilogram.
50
Biscuits (S)
5o in a box
450
c. Clothing
Coat (men?s) (H)
Undershirt
(men ? s, f irst quality)
Undershirt
(men?s, medium quality)
Stockings
(men Is)
.Stockings (wool,, men's)
Hat (men?s)
Cap. (linen)
Sweat shirt
Undershirt (won, a n o s
Stockings (womenos) (CC)
.Stockings
(women's synthetic silk)
Cap (child is)
1 pair
1 pair
5,000
500
250
500
500
800
350
250
280
500
Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2
 Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2
25X1
Item2
Unit of
Measurement3
Price
Leather boots (C)
Canvas and rubber shoes
1 pair
1 pair
3, 030 N K won
700
Black rubber shoes (mends)
1 pair
.1, 700
Black rubber shoes
1 pair
1, 300
(won ends)
Rubber shoes (child's)
'1 pair
1,100
c. Dry Goods
Coat material (U)
1 meter
2,500
(cotton-wool)
Summer hemp cloth (U)
1 meter
700
Sheeting cloth
1 meter
700
Cotton cloth
200-foot bolt
2,870
Cotton towel
1
1,000
(first quality) (CC)
Cotton towel
1
700
(Second quality) (CC)
d. Writing Materials
Pencil (CC)
1
60
Pencil
1
Pen points (CC)
100
570
Pen holder
1
30
Pencil (color) (C)
1
100
Notebook
1
50
White paper
1 sheet
93
e. Cosmetics and Notions
Toilet soap
quality)
Laundry soap
(third
(third
1 bar
1 bar
200
quality)
Tooth brush (medium
1
120
quality) (CC)
SECRET
Approved For Release 2003/08/13 : CIA-RDP82-00457R016300320008-2
 Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2 25X1
SECRET
Tooth paste
(low quality)
(CC)
1 tube
110 NK won
Tooth powder
(low quality)
(CC)
1 bag
110
Cigarettes (S)
1 pack
200
Matches
15
25X1
25X1
25X1
25X1
25X1
25X1
Comment. In this easel did not indicate whether a
a~ or small mal was used in measurement but the small mal was
probably intended.
25X1 25X1 5. jomment. probably mistook a 200,000 unit bottle for a
, uini o t F.s ce.a check with medical authorities showed that
the smallest quantities of penicillin came in 50,000 unit bottles.
Comment. If these price 1n;-4s are authentic and no error
~
as 5ene meat. e
in units of mean.:: ; ment comparison with price
reports from the same general rea reveals a
sharp drop in the prices of food staples in a sort Deriod of
time. for a June 1952 reort from Ch tong jin
(129-J
, l- 7 EB-6826) ..J,r.: lfor a September
.
report from Son iin (129-- ..;.2, 0 EA-1701).
r 40
following (prices are in NK won per mal unless otherwise
stated);
reports men done above with those at Kilchu showed the
Co:zp>.rison of food prices from the two
Item
Kilchu Chtongjin
-
-
Songjin
952 June
Oct
o
September 1952
rice
1,800 5, 8oo
5,000
eggs
15 each 30
info.
not available
.bean oil
501 gallon 22725
to
it
It
beef
100 kilogram 300
It
It
It
millet
1,600 info. not available
3,600
potatoes
600 -t to It
.600
beans
800 tt it it
2
600.
sorghum
800 H It if
,
3,lL00
2. Comment. Letter symbols in -oarenthesesimmediately following
(S) USSR; (0) Czechoslovakia; (CC) Communist China; (US
United States; (J) Japan; (H) Hungary and (U) unknown. where
no letter symbol appears, the item was produced in North-Korea.
e items In cate the country in Aiich they originated. They are-.
3. 1 Comment. Western equivalents of the Korean units of measurement
`~
used
in this report areo large mal, a little less than 30 pounds of
rice or about one-half bus?,,el and for liquids, about 18 linters or
3.97 gallons; small mal, half of a large mal; kwan, 3.75 kilograms or
about eight pounds.
Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2
25X1
25X1
25X1
 Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2
6.omment. The contrast between the price of a tooth brush
importeedff from Communist China and one of North Korean manufacture
seems incredible. The following prices also seem unreasonable; 11,000
won for a packet of sewing needles- 3,700 won for four-inch spikes in
contrast with 6, 000 won for the same quantity of tvv -inch nails;
raw rubber at 13,000 won for about eight pounds with the price of
bicycle tires with tubes quoted at 900 won; one large mal of wine
on the free market at 900 won and in the consumers guild store at
1,170 won for 1.8 pounds (sic).
7. Comment. the raw rubber was produced
__J I in North orea< was pro a y imported from Communist China.
SECRET
25X1
Approved For Release 2003/08/13 : CIA-RDP82-00457RO16300320008-2