[Interview] North Korean defectors bear brunt of remittance scams

Seo Jae-pyeong, head of the Association for North Korean Defectors, speaks during an interview with The Korea Times on Monday at a library in Songpa District, Seoul. Korea Times photo by Kang Hyun-kyung

This is the third in a series of interviews with North Korean defectors and their assimilation into South Korea―ED.

Older North Korean defectors are predominantly conservative, yet some young people lean toward liberals, says activist

By Kang Hyun-kyung

"Finally, we are here."

That is what many North Korean defectors say when they arrive in Incheon International Airport after hiding in China for several years. Tasting freedom, they heave a sigh of relief because they no longer have to live in fear of getting caught by the Chinese security authorities and being sent back to the North.

But that sense of relief is short-lived as their days in the South unfold.

Most of them left behind impoverished family members back home. The defectors say they feel an overwhelming sense of sadness and guilt whenever they think of their parents, siblings and other loved ones who are struggling to make ends meet in the North.

The escapees work hard and try to save as much money as they can to send back home to help their family members escape hunger.

The pandemic, however, has complicated remittance transfers. Also, their acts of filial piety are abused by fraudulent brokers.

Cases of remittance fraud have increased as the pandemic created a loophole that allows brokers to cheat their clients, according to the leader of a Seoul-based non-profit group established to help the resettlement of North Korean defectors.

"Remittance transfers to the North Korean cities located along the border with China, such as Musan, Hoeryung and Hyesan, have gone smoothly as usual," Seo Jae-pyeong, the president of the Association for North Korean Defectors, said during a recent Korea Times interview. "But cases of fraud were reported by defectors who had sent money to their family living in inland cities and counties located far from the border regions."

He said various types of scams were reported. False receipts are one of the most common types of fraud that frustrate the defectors.

"Some brokers tell the defectors that the money was handed over to their family members without presenting hard evidence, while some fabricate receipts. The hardest part is that there is no way for the defectors in the South to make sure whether the money reached their family."

Seo posted a pop-up notice on his organization's website to warn fellow defectors of the remittance scams to help raise awareness of the newest types of fraud.

Sending money back home to North Korea is a high-risk business for everyone involved.

Since the pandemic, it has become almost impossible for defectors to make sure if the money was delivered to their families. Brokers and recipients in the North face grave consequences if they are caught by North Korean authorities.

Remittance transfers usually involve three brokers ― one living in South Korea, another in China and another in the North. Brokers used to take 30 percent of the money sent to the North as commission. But after the pandemic, Seo said the rate for brokers was raised to 50 percent, as money transfers have become even riskier and more daunting than ever before due to the North's lockdown.

Once the money is delivered, brokers arrange a video call between a defector in South Korea and their family in the North using a smuggled Chinese smartphone. The video chats are available only in the China-North Korea border regions as the phones can use international networks.

If a recipient lives in an inland area of North Korea, the broker in the North takes the family member all the way to the border region to arrange the phone call.

COVID-19, however, changed everything.

Due to North Korea's lockdown, family members living in inland areas are not allowed to travel all the way to the border regions for video confirmation on a smuggled Chinese cell phone.

"Some brokers take advantage of the loophole," said Seo. "They fabricate receipts. Some hand over a smaller amount of money than what was due and force them to sign a receipt."

An annual survey conducted by the Database Center for North Korean Human Rights, in collaboration with North Korea Social Research (NKSR), paints a rough picture of the scale of inter-Korean remittances. The 2022 survey, released on October 21, 2022, found that 17.8 percent of North Korean defectors sent remittances back home 1.5 times per year. The average amount of money sent each time is 4.09 million won ($3,075). A total of 208 million won ($160,000) was sent to the North by the defectors, an increase of 35 million won from the previous year.

A total of 399 North Korean defectors in the South were surveyed between September 19 and October 2, last year, and it has a margin of error of plus or minus 5 percentage points.

Seo Jae-pyeong, the president of Association for North Korean Defectors / Korea Times photo by Kang Hyun-kyung

Older defectors pitted against liberal politicians

Seo witnessed a lot of changes that took place in the North Korean defectors' community since he and his wife arrived in South Korea in 2001 with their son. One of the striking changes he has experienced so far is the diversification of the ideological spectrum of defectors.

"I feel that nearly 30 percent of younger North Korean defectors are liberal or liberal leaning," he said, mentioning his conversations with the younger defectors in their 20s, mostly university students or recent graduates, during an outreach program his organization had prepared several years ago. "It was the time when President Park Geun-hye was in office. They were very critical of the conservative Park government."

In a democratic society, Seo said it's natural for people to have different views and ideas about certain issues. But he added that he was surprised because they were so outspoken even though some of their views were based on factual errors.

He said politically liberal younger defectors are not the result of a generational shift, but a reflection of liberal college education in the South.

"I think they are influenced by education in South Korea. They go to college here and are affected by their classmates and faculty members who have diverse views about given political events," he said.

Most of the older North Korean defectors are stalwart conservatives. They risked their lives to escape from the communist country, as they are sick and tired of the North Korean regime's mismanagement of the economy, which led to chronic food shortages and consequently resulted in the suffering of the North Korean people.

The older generation's political orientation has been partially reinforced by the liberal South Korean government's stance on North Korea.

The North Korean defectors community was impacted by changes in political leadership, particularly when a liberal government replaces a conservative government.

In South Korea, liberal politicians have tried to engage the North to improve inter-Korean relations. They appear to believe that North Korean defectors and their criticism of the North Korean regime are an impediment to their endeavors to seek dialogue with Pyongyang.

Seo said his organization had to downsize programs during the Moon Jae-in government, because funding from the state was suspended during his five-year tenure.

He said his organization had to be self-sustained, adding that small donors, who offered 10,000 to 20,000 won per month, helped his organization survive during those years.

"During the Moon government, there was no budget cut or suspension of allowances for the defectors," he said. "But their policy for the minorities, like the North Korean defectors, failed because they didn't do anything to encourage society to become inclusive."