North Korea: North Korea taps into beer exports to boost foreign currency earnings

North Korea’s Kyonghung Unhasu Beverage Factory has begun aggressive efforts to earn foreign currency through exports as it ramps up beer production, Dailynk.com reported on August 30.

Speaking on condition of anonymity, a source in Pyongyang told Daily NK on August 26 that the factory “recently developed a variety of beer products, including bottled beer, canned beer and packaged draft beer, and started shipping them in late July.”

The factory significantly increased beer production by reassigning two work teams to the task. In August, the factory held a meeting at which workers were urged to move up the shipping date from the previously scheduled date “so that there are no obstacles to exports,” the source said.

The factory has recently been focusing on beer production because of a government order to expand foreign exchange earnings through beer exports. “In early June, the factory received a government order asking it to expand exports by diversifying beer products and increasing production,” the source said.

North Korean authorities ordered the factory to increase exports with two main goals. First, they wanted to promote the country’s beer industry internationally by making North Korean beer more accessible to foreigners, including those who had visited as tourists and those who were simply curious about the country. Second, they sought to increase foreign exchange earnings through these expanded beer exports.

North Korean authorities ordered that beer for export be priced lower than beer for domestic consumption.

In fact, beer produced at the Kyonghung Unhasu Beverage Factory costs 4,000 North Korean won per bottle in North Korea, while it costs about 2,000 won in China.

“The aim of exporting the beer is to create the impression among foreigners that North Korean beer is cheap and tastes good by offering it at low prices,” the source said. “The government plans to gradually increase foreign exchange earnings through these efforts.”

Meanwhile, North Korean authorities conducted a thorough evaluation of the Kyonghung Unhasu Beverage Factory’s products last month before the export drive. The authorities gave the beer rave reviews, claiming it was “as good in taste and quality as beer in any other country.”

They also urged the factory to “sharpen its technological edge in the future to prevent the quality of production from slipping.”

North Korean authorities severely restrict private beer production and tightly control and manage the market to prevent the circulation of imitations.

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