Jangmadang

Jangmadang (lit. 'market grounds'; Korean: 장마당; Hanja: 場마당; IPA: [t͡ɕa̠ŋma̠da̠ŋ]) are North Korean local markets, farmers' markets, black markets and bazaars. Since the North Korean famine in the 1990s, they have formed a large informal economy, and the government has become more lenient towards them. However, merchants still face heavy regulations. A majority of North Koreans have become dependent on jangmadang for their survival.

The North Korean government has tried to regulate the growth of the market economy in North Korea using a variety of methods. Some of them, such as regulating the age of traders, has resulted in societal changes such as making women more responsible for earning money for their families.

There have been speculations on the possible role of black markets in reforming the North Korean government and its economy, as has happened in China.

In 2019, the authorities moved to curb individual economic activity, followed by greater crackdowns in 2021, creating a decline in markets.

North Korea established a socialist welfare system in 1948, with the Constitution of the Democratic People's Republic of Korea. This system nationalized the means of production and the population received goods, food, and other necessities through a public distribution system. As a result of the 1994–1998 famine, also known as the Arduous March or the March of Suffering, the distribution of rations was reduced drastically. Citizens were forced to secure food and other necessities through different means. North Korean citizens farmed land deemed "unusable for agricultural purposes" by the government or even small kitchen gardens to provide for their families. These illegal private farms were able to produce crop yields larger than the public agriculture programs. Farmers sold off any surplus of goods or bartered for other necessities.

After the collapse of the public distribution system in North Korea, the North Korean government had no choice but to tolerate 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 the official and unofficial economies 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.