Korea Democratic Republic of, Pyongyang

Overview

Korea Democratic Republic of, Pyongyang Pyongyang is the capital of North Korea. Pyongyang has been completely redesigned since the Korean War (1950–1953). It is designed with wide avenues, imposing monuments, and monolithic buildings. The city also has regular international train services to Beijing and Moscow. A journey to Beijing takes about 25 hours and 25 minutes; a journey to Moscow takes 6 days.

The Democratic Republic of Korea is in Eastern Asia, in the northern half of the Korean Peninsula bordering the Korea Bay and the Sea of Japan, between China and South Korea. The climate is temperate with rainfall concentrated in summer.

The official language is Korean. North and South Korea share the same language but there are differences in dialect. The main religions are atheist or non-religious and traditional beliefs.

The economy of North Korea is an industrialised, highly centralized command economy. The role of market allocation is sharply limited - mainly in the rural sector where peasants sell produce from small private plots. There are almost no small businesses.

In North Korea there are strict rules regulating the conduct of foreigners/expatriates as well as locals. North Korean society is hierarchical, placing most importance on seniority. Senior hosts will be introduced first. Expatriate business dress is conservative, comprising suits. Businesswomen are expected to dress conservatively.

The security risk for expatriates in North Korea is medium to high. Risks include inadequate travel permission and documentation, information security, enforced travel changes, and arbitrary interrogation or detention.

The currency of North Korea is the North Korean Won (KPW). Credit cards and travellers’ cheques are not accepted. Some hotels may insist on full payment in advance when checking in.

Medical facilities in North Korea are poor and limited.

The population of Pyongyang is 3.2 Million (2019 est.), while the inflation rate (CPI) is 55% for North Korea as at July 2013.

Xpatulator Hypothetical Tax for Democratic Republic of Korea is based on the current personal income tax rate of 0% as there is currently no personal income tax.

Cost Of Living

The cost of living for expatriates / professional migrants in Pyongyang as at 1 November 2019 is very high in comparison to other places in the world.

We have collected prices for the same items, world wide, based on Expat spending norms, in or closest to the location, and converted them to $USD so that we can compare the cost of 13 different baskets in 780 global locations. For each basket, compared to New York, the equivalent cost in Pyongyang is as follows:
1) Alcohol and/or Tobacco: for items such as beer, spirits, wine and tobacco related products such as cigarettes. A basket costing USD$1000 in New York costs USD$1260.
2) Clothing: for items such as business, casual and children's clothing and footwear. A basket costing USD$1000 in New York costs USD$690.
3) Communication: for various communication costs such as home telephone rental, internet subscription, mobile service provider tariff and data costs. A basket costing USD$200 in New York costs USD$190.
4) Education: for items such as creche / pre-school fees, primary school fees, high school fees and tertiary study fees. A basket costing USD$30000 in New York costs USD$31500.
5) Furniture & Appliances: for items such as dining table and chairs, home entertainment, kitchen appliances, and sofas. A basket costing USD$2500 in New York costs USD$2900.
6) Groceries: for items such as consumables, cleaning products, dairy, fresh fruit & vegetables, general food products, snacks, soft drinks. A basket costing USD$1000 in New York costs USD$1060
7) Healthcare: for general heath care, doctor visits, hospital stays, non-prescription medicine, and medical insurance. A basket costing USD$1000 in New York costs USD$760.
8) Household Accommodation: for items such as apartment rent, house rent, property purchase, mortgage rate, and utilities. A basket costing USD$5000 in New York costs USD$1350.
9) Miscellaneous: for items such as dry cleaning, linen, magazines, newspapers, office supplies, and postage stamps. A basket costing USD$500 in New York costs USD$1005.
10) Personal Care: for items such as cosmetics, hair care, and toiletries. A basket costing USD$500 in New York costs USD$505.
11) Recreation & Culture: for items such as books, cinema, sport and theatre tickets. A basket costing USD$500 in New York costs USD$715.
12) Restaurants Meals Out and Hotels: for items such as hotel daily room rates, meals and beverages in a restaurant, and take away food and beverages. A basket costing USD$1000 in New York costs USD$660.
13) Transport: for items such as fuel (petrol/gasoline), car hire, public transport, vehicle purchase and maintenance. A basket costing USD$1000 in New York costs USD$1200.

Pyongyang is 64.4% more expensive than Houston TX for groceries, -35.9% cheaper for household costs than Kuala Lumpur, and 102.8% more expensive for transport costs than Dubai.

Pyongyang is ranked as a extreme hardship location.

The hardship premium for Pyongyang for an expat from Perth, is for example 30%, i.e. host location (Pyongyang) premium of 40% minus home (Perth) location premium of 10%.

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The cost of living for expatriates / professional migrants in Pyongyang as at 1 November 2019 is very high in comparison to other places in the world.

Pyongyang is ranked as a extreme hardship location.