Jangmadang

Jangmadang (Chosŏn'gŭl: 장마당), Korean for market grounds, is a term usually used to refer to North Korean farmers' markets, local markets and black markets. Since the North Korean famine, they have formed a large informal economy. In recent years, the government has become more lenient on their existence, but however, merchants still face heavy regulations. Currently a majority of North Koreans are dependent on markets for their survival.

The North Korean government has tried to regulate growth of the market economy in North Korea with a variety of methods. Some of them such as regulating age of traders has caused some societal changes such as making women more responsible for earning money for their families. This has resulted in changing gender roles in North Korean society.

There have been speculations on the possible role of black market in causing reforms of North Korean government and economy, possibly in similar manner as in China.

After the collapse of the public distribution system in North Korea, the North Korean government allowed private markets. They originally sold essential items, rice and vegetables. Private markets evolved from local communities involving various organizations, workplaces, relatives and neighbors, that helped people to survive during the famine. Many of these mutual-help arrangements broke up later on, as markets developed.

Unlike in cities, the people use bartering instead of money to engage in trade.

China dominates both official and unofficial economy in North Korea. Some people received their start-up capital from relatives in China. Many of these relatives also became partners and advisers in business.

As of 2008^[update], an estimate of 70 percent of households living in cities engage in handicrafts, trade or transportation services related to trade. Without a working food distribution system, people need local markets to earn money and survive. While actual monthly salary was two U.S. dollars, an average North Korean earned a total of around 15 dollars a month in 2011. Successful black-market operators and actual capitalistic success stories are rare, however, even if a few former laborers and farmers have become very rich with income of hundreds and even thousands of dollars a month. Between a half and three-quarters of North Korean people's income come from various market activities. However, crackdowns by government lead to irregularities in business and bribing.

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