North Korea’s long holiday weekend sparks consumer spending surge

North Koreans experienced an unusual consumer spending surge during an extended holiday in mid-February, coinciding with Kim Jong Il's birthday and Lunar New Year. Bathhouses, markets, and karaoke rooms saw record crowds as residents took advantage of time off to purchase gifts, improve hygiene, and enjoy recreational activities, providing a rare boost to the country's domestic economy.

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North Korea’s long holiday weekend sparks consumer spending surge

North Koreans went on an unusual consumer spending spree over an extended holiday weekend in mid-February, when the conjunction of Kim Jong Il's birthday on Feb. 16 and the Lunar New Year on Feb. 17 gave residents of North Pyongan province more time and motivation to visit bathhouses, stock up on groceries, and book karaoke rooms.

According to a source in North Pyongan province recently, who requested anonymity for security reasons, the increased consumer spending over the extended holiday had been a boon for businesses.

Bathhouses and saunas were especially crowded during the holidays. Amid the crush of customers, bathhouses in Yomju county and other parts of North Pyongan province had to resort to unusual practices, limiting visits to 40 minutes or moving to a reservation system to avoid exceeding capacity.

"Getting squeaky clean on the New Year has become customary here, so bathhouses in particular saw a particularly large number of guests. Since people can't count on hot water at their homes nowadays, the extended holiday was viewed as a good time to concentrate on good hygiene," the source said.

Stores and marketplaces were also unusually crowded over the holidays. While it is typical for North Koreans to stock up on groceries before big holidays, demand was boosted by people purchasing modest gifts.

"The festive atmosphere led to more impulse purchases than usual," the source remarked.

Many North Koreans apparently took advantage of their time off to indulge in karaoke nights and other cultural and recreational activities. That was especially common among younger people, who have taken to chipping in for the cost of an activity, instead of letting the oldest person cover the bill.

"Karaoke rooms that cost $50 for three hours were very popular. That's not so expensive if you split the cost six or seven ways, so a lot of people had their hearts set on going out for karaoke over the holidays," the source said.

The surge in consumer spending over the holidays appears to have been driven by a combination of old customs and a pent-up urge to escape from North Korea's strictly controlled routine. But it remains to be seen how long this holiday extravagance will invigorate the country's sluggish domestic market.

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