NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

North Korea learns to embrace its inner consumer

By Eric Talmadge
Other·
28 Sep, 2018 11:30 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Has North Korea discovered the art of product placement? Photo / AP

Has North Korea discovered the art of product placement? Photo / AP

In an instructional television program about table tennis on the state-run sports channel, every ball, paddle and shirt bear the logo of "Naegohyang," one of North Korea's most recognisable brands.

A documentary about the Pyongyang Maternity Hospital ends with new mothers being handed smartly packaged disposable diapers — with the local brand featured prominently.

Has North Korea discovered the art of product placement?

Subtle shifts like the quiet insertion of what looks a lot like advertising onto the North Korean airwaves exemplify how in the era of leader Kim Jong Un the North is learning to embrace its inner consumer.

Officials won't come right out and say so, but the rise of a consumer culture is a major feature of Kim's plans to strengthen the economy and lift the people's standard of living.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Entertaining and innovative aren't words often used to describe North Korean TV, which has just one channel available everyday throughout the country and just a few more a few days a week in the capital. Programming is relentlessly ideological and always on-message.

But examples like the Naegohyang-laden table tennis program suggest at least some officials within the regime have been given a green light to push the envelope.

And it's not just happening on TV.

Advertisement
Advertise with NZME.

While the rest of the world has been focused on its nuclear weapons and missile tests, North Korea watchers have remarked on the spread of market-style capitalism ever deeper into the country's officially socialist and centrally controlled economy in the past few years.

The evidence is unmistakable — from the haggling-friendly, bazaar-like atmosphere of Pyongyang's Tongil Street marketplace to street-food stalls and the prominence of brands like Naegohyang, seen on cigarettes, liquor and sporting goods including, of course, ping pong balls.

Exactly how the country has maintained domestic economic growth despite some of the toughest international sanctions it has ever faced is a topic of hot debate. Most experts agree China is a major factor.

But what is often overlooked is the role of the North Koreans themselves, especially those who developed an entrepreneurial spirit after the dark days of the 1990s, when the Soviet Union and its socialist satellites crumbled and natural disasters and bureaucratic inefficiency meant that survival literally often meant learning how to fend for oneself.

Discover more

Business

NZ dollar heads for weekly fall

28 Sep 05:27 AM
Business

Spark leads NZ shares gain

28 Sep 05:35 AM
Business

Super Fund prepares for volatility

28 Sep 05:00 PM
Business

Tesla faces a reckoning with Musk's job in jeopardy

28 Sep 11:55 PM

The rise of the North Korean consumer under Kim Jong Un is not limited to the affluent, politically privileged elite.

In Kim Jong Un's North Korea, you don't need to be the spoiled daughter of a senior official to be able to get a strawberry smoothie.

Still, the consumer sector remains warped, as it does in many developing countries with large disparities of wealth.

Millions of North Koreans still suffer from poor diets and a lack of clean water, struggling through the country's bitterly cold winters. Farmers out in rural collectives lack the time, energy and income to worry about what flavor ice cream they might fancy.

But there are plenty of people that might.

It is for that demographic the O-Il General Process Factory boasts 55 flavors of "Eskimo," the word used here for popsicles. That's in addition to full lines of ice cream cones, yogurt drinks, jellies, sports drinks, milk products and assorted juices — all of which are featured in a glossy new promotional brochure obtained by The Associated Press that is directed at potential foreign export partners. The factory is no Potemkin bluff — its products can be found in stores and restaurants all over Pyongyang.

Advertisement
Advertise with NZME.

Shops and department stores in other major cities, such as Wonsan, Hamhung and Chongjin on the east coast and even smaller stores in the provinces have shelves full of chips, sugary drinks, cigarettes and candies. The focus on variety is more akin to what's found in a capitalist consumer culture than in one that's more strictly socialist and utilitarian.

The trend has the leader's blessing.

Factory managers, restaurant operators and people in the service industries have all been quick to stress to AP over the past several months that the central government, and Kim himself, want the country to focus its collective energy on pushing out more and better consumer goods.

Beyond that, doctors say they are being urged to help to raise the standard of living, despite a chronic lack of supplies and equipment, by finding innovative ways to fight threats like tuberculosis, decrease infant mortality and increase life expectancy.

Many outside of North Korea assume that wanting to catch up with South Korea is the biggest factor behind Kim's campaign.

But the regime has its own reasons for tweaking its system. Kim has big plans for the country's economy. More business means more he'll have more money to fund those plans.

Advertisement
Advertise with NZME.

And big, state-owned companies like Naegohyang aren't disruptive outsiders but part of the North's status quo. They've been likened to the "Chaebol" conglomerates like Samsung and Hyundai that dominate the South Korean economy.

For now, advertising is still somewhat avant garde.

The capital has only a few billboards, all of them for Pyonghwa Motors, an automaker set up with help from South Korea. The few neon signs shining from the tops of buildings convey praises of Kim and his forefathers, or political slogans.

But the ground is clearly shifting.

TV viewers who tuned in a few minutes early for the nightly news broadcast recently were treated to what can only be seen as the next best thing to a true ad — an "educational" short featuring recipes that all included a kind of fermented apple vinegar, followed by testimonials from satisfied customers and a display of those very vinegar products as one might see them in the store.

Stay tuned. The next revolution may, indeed, be televised.

Advertisement
Advertise with NZME.

- AP

Save

    Share this article

Latest from Business

Premium
Shares

Market close: Fletchers down 3.6%

24 Jun 05:46 AM
Premium
Business

Danone's NZ profits surge, dividend doubles to $19.8m

24 Jun 05:00 AM
Retail

Ikea to hire 500 staff for NZ launch, 100 more than planned

24 Jun 04:53 AM

Audi offers a sporty spin on city driving with the A3 Sportback and S3 Sportback

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Premium
Market close: Fletchers down 3.6%

Market close: Fletchers down 3.6%

24 Jun 05:46 AM

Oil prices suffered one of their steepest single-day falls in five years on Tuesday.

Premium
Danone's NZ profits surge, dividend doubles to $19.8m

Danone's NZ profits surge, dividend doubles to $19.8m

24 Jun 05:00 AM
Ikea to hire 500 staff for NZ launch, 100 more than planned

Ikea to hire 500 staff for NZ launch, 100 more than planned

24 Jun 04:53 AM
Major supermarket apologises for humiliating woman with false shoplifting claim

Major supermarket apologises for humiliating woman with false shoplifting claim

24 Jun 04:36 AM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP