N. Korea troubled by rising rice prices, currency depreciation

North Korea has been plagued by ising rice prices and the falling value of its currency since the inauguration of its young leader Kim Jong-un, a government source here said Thursday, an apparent reflection of the northerners' anxieties over the inexperienced son of former leader Kim Jong-il.

Prices of official market-traded rice, a staple for Koreans, have increased sharply, while the North Korean won has taken a dive since Kim Jong-il died suddenly last December, the source said.

Last September, one kilogram of rice cost an estimated 2,400-2,500 won, while one U.S. dollar changed hands for up to 3,000 North Korean won, according to the source.

The news of Kim's death in December, however, brought the price of rice as high as 4,500 won, while the value of the won against the U.S. dollar plunged to the 5,000 won level in late 2011, he said.

The prices normalized somewhat in February before shooting up again around June, he noted.

Experts said the price gains reflect North Koreans' unrelenting jitters over the untested Kim Jong-un regime, as well as unsatisfactory reforms in the ailing North Korean economy.

The widely-known failure of the North's currency reform attempts in 2009 only raised the appeal of foreign currency vis-a-vis the local note, experts indicated.

Further weighed down by severe damage from recent floods, the North may see a continuing rise in the price of rice, as well as falls in its currency value in the future, they said.

(Yonhap News)