Now We Get to Choose: Why North Korea Holds the Upper Hand as Russia and China Compete

1. North Korean Female Workers Head to Russia... '8,000 Won per Hour'

Women dressed in matching red jackets and outfits step off an airplane in single file. Now, a group of women are gathered together, carrying large black bags commonly known as immigrant bags along with backpacks. These scenes were released through Russian media outlet Ostorozhno Novosti and social media accounts of Ukrainian figures. The media outlets reported that North Korean female workers are being sent to various regions across Russia through staffing agencies and deployed to assembly production, food manufacturing, and the garment industry. Each group reportedly consists of 40 people. The minimum rate proposed by the agencies is said to be 480 rubles per hour, which is about 8,000 won in Korean currency. Scenes presumed to show North Korean women heading to Russia or working there are frequently witnessed these days. Footage has even captured North Korean women arriving for work at the fulfillment center of a large e-commerce company often referred to as the Russian version of Coupang.

[The people here with us are workers from North Korea. They are replacing local human resources.]

2. China Was Once the Top Destination, But the Tides Are Changing?

They are not only working in the private sector. Last December, we reported that a drone factory in Tatarstan, located about 900 kilometers east of Moscow, was recruiting and actually employing North Korean female workers. Of course, this does not mean North Korean workers were entirely absent from Russia until now and are just beginning to go. However, the phenomenon of North Korean female workers noticeably increasing in Russia is distinctively different from the past, making it worthy of attention.

[Jeong Eun-i / Head of North Korea Research Division, Korea Institute for National Unification: Previously, 90 percent of North Korean workers going to Russia were male, whereas 90 percent of those going to China were female. This was because Russia had demand specifically for logging and construction workers, while China had demand for apparel and processing-on-commission. But recently, these distinctions seem to be breaking down. Russia previously wanted only males, but now it wants females too.]

While China and Russia previously brought in labor from non-overlapping sectors, the situation has now changed. Assessments suggest that their relationship has shifted from being mutually complementary to competing over North Korean labor. So, which side do North Korean workers prefer? Reports indicate a recent tendency to favor Russia over China, and the reason, once again, is money.

[Jeong Eun-i / Head of North Korea Research Division, Korea Institute for National Unification: When comparing China and Russia, Russia is a very cold region, making labor somewhat difficult. People say it is tough when you go there, but despite that, Russia pays about two to three times more in wages.]

A North Korean business operator in China shared that in the past, when China requested North Korean workers, they were sent immediately, but now there are cases where workers balk and refuse to go when told to head to China. While the monthly salary of a North Korean worker in Russia is about 1,200 dollars, it is at most 300 to 500 dollars in China, according to this operator. Even considering remittances to authorities, the absolute difference in amounts is substantial.

3. North Korea Grows Pickier... Chinese Businesses Left Pleads

Whether in China or Russia, the work ethic of North Korean workers generally receives favorable evaluations. Labor costs remain relatively low compared to local workers, and working hours are long. Additionally, because they live and move in groups, employers find them easier to manage as an advantage. As North Korean female labor gains considerable popularity in Russia, the demands and attitudes of North Korean workers have changed significantly compared to the past. Reports have surfaced of North Korean workers dispatched to Russian livestock facilities demanding nutritional supplements for hazardous tasks such as sewage treatment, and separate allowances for night shifts. This trend is not limited to Russia; similar changes are appearing within China as well.

[Jeong Eun-i / Head of North Korea Research Division, Korea Institute for National Unification: The person who recently hired North Korean workers—the boss, so to speak—was reportedly quite surprised. In the past, when working overtime, allowances were not calculated so strictly nor paid generously. But now, they want overtime allowances strictly calculated and demanded on an hourly basis.]

Chinese business operators explain that because workers are relatively reluctant to come to China, wages are gradually rising compared to before.

4. Will the Russian Exodus Continue?... Even Post-War Reconstruction 'Reserved'?

The key to whether North Korean workers can maintain their leverage is how long Russia's need for North Korean labor will last. Some might wonder why Russia bothers to take in North Korean personnel, but experts diagnose that Russia's internal labor situation is severely constrained.

[Doo Jin-ho / Director of Eurasia Center, Korea Research Institute for National Strategy: With the prolonged war and military mobilization overlapping with a declining population, Russia is facing a severe labor shortage. This year alone, a shortage of about 1.9 million workers is projected in the manufacturing sector, and labor shortages are particularly acute in the transportation and logistics sectors as well.]

This labor shortage will not be resolved immediately even if the war between Russia and Ukraine ends. Rather, additional demand will follow after the war concludes. Places devastated by the war must be rebuilt entirely, requiring post-war reconstruction. Conveniently, large-scale construction projects are among North Korea's areas of expertise. Therefore, possibilities are being raised that North Korea's experienced construction workforce could be deployed once post-war reconstruction projects get into full swing. In this scenario, the proportion of male workers or soldiers with experience in the construction sector would likely increase significantly. We have discussed the dispatch of North Korean overseas workers up to this point, but fundamentally, sending workers abroad is prohibited under United Nations Security Council resolutions on North Korea. However, both Russia and North Korea largely disregard these sanctions. Russia continuously needs labor, and North Korea needs foreign currency revenue sources. As the interests of both sides align, the exodus of North Korean workers to Russia and the off-court competition between China and Russia are likely to continue for the time being.

(Photo: Yonhap News) | Reported by Kim Ayeong | Produced by Shin Hee-suk | Video by Kim Hye-joo | Graphics by Yook Do-hyun | Produced by SBS Digital News

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