While a report from Daily NK last week said China’s crackdown on smuggled cigarettes from North Korea ground the illegal activities to a halt, a story yesterday (August 26) from Radio Free Asia (RFA) suggests otherwise. Smugglers and traders told the news outlet that the combination of surging demand and lenient penalties (compared to other contraband) makes the trade highly profitable.
Residents in North Korea’s Yanggang province told RFA that the cross-border trade, which began about two years ago, has expanded sharply in recent months. Smugglers move 20–50 boxes per trip, each containing 500 packs, earning around 50 yuan ($8) profit per box.
While legally imported North Korean brands such as Chosun are sold mainly as pricey tourist souvenirs, smuggled cigarettes are mostly in unmarked packaging and then rebranded by Chinese manufacturers in Jilin province and sold as domestic products. North Korean cigarettes cost as little as 2,500–3,500 won ($0.36–0.50) per pack, far cheaper than Chinese brands. According to RFA, factories such as Korea Sonbong General Corporation and Paeksan Cigarette Company supply the bulk of production near the border.
China, home to more than 300 million smokers, consumes about one-third of the world’s cigarettes, making the black market highly lucrative. Sources say the smuggling trade is expected to keep growing due to the low cost of North Korean tobacco and the relatively light punishments for offenders.