How does a resident open and use a bank account with banks in North Korea?

A resident generally uses a state or local bank, identity registration, a passbook or account and a wage or card channel. The bank may require a third-party guarantee when identity is unclear, and transfers identify both sender and recipient; a suspicious transfer can be stopped or reported.

Which banks in North Korea handle foreign trade and foreign-exchange transactions?

The Foreign Trade Bank, commonly called FTB, is the primary bank for foreign-exchange services, trade settlements, payments, guarantees, trade credit and foreign-exchange control. Enterprises may also use a responsible functional bank, while foreign-invested banks require investment-management approval and remain subject to domestic approval and international sanctions.

What protection applies to deposits held with banks in North Korea?

No reliable national deposit-insurance scheme, universal state guarantee or transparent compensation mechanism has been evidenced. Withdrawal conditions, fees, interest rates and foreign-exchange spreads are not systematically public, and practical access to savings can be difficult, so a bank account does not guarantee convenient liquidity or strong privacy.

Banks in North Korea

Q: How do banks in North Korea provide cards and electronic payments?

Banks issue domestic electronic, prepaid or debit-like cards, including Narae, Koryo and Jŏngsŏng cards. The Electronic Payment Law covers bank and non-bank electronic payment services using cards, terminals, mobile phones, computers and ATMs; enrolment decisions should take no more than two business days under the listed law.

North Korea has a state-controlled banking system centered on the Choson Central Bank, which manages North Korean won circulation, monetary control, budget receipts and much wage and payment activity. Specialized banks such as the Foreign Trade Bank handle foreign-exchange and trade functions, while ordinary retail access varies by place and purpose. Accounts, domestic cards and electronic payments exist, but cash, foreign currency and informal brokers remain significant because liquidity, reliability, privacy, deposit protection and international access are limited or uneven.

Tip

Treat a North Korean bank account as a purpose-specific payment tool, not as a dependable savings or international-banking solution. Choose the formal bank and payment channel according to whether you need wages, domestic purchases, trade settlement or approved humanitarian or diplomatic transfers, and keep a backup for cash, power, connectivity and withdrawal problems.

byOk&Yong

North Korea's banking system is formally developing a two-tier structure, but control remains centered on the Choson Central Bank. The bank issues the North Korean won, manages monetary circulation, receives budget payments, controls parts of wage and payment flows, and provides financial guidance and supervision. The Cabinet provides unified direction, including through its Non-Standing Financial and Banking Commission. Other banks are linked to state, Cabinet, Party or military functions. Examples include Daesong Bank, Koryo Bank, Tanchon Bank, Ilsim Bank, Golden Triangle Bank and Joseon Tongil Development Bank, although their status and practical scope can vary or remain unclear. Formal separation between the central bank and specialized banks has become more visible in legal and institutional analysis, but this has not created an open private retail-bank market or independent bank choice for ordinary customers. A personal account, called 돈자리, normally depends on identity registration with a state or local bank. Residents may use a passbook, a registered account, a wage channel or a bank card. When identity documents are unclear, the bank may request a third-party guarantee. A transfer identifies the sender and recipient, and a bank can stop or report a transaction that appears suspicious. Branch availability is uneven, with Pyongyang and major cities generally better equipped than other areas. Historical reporting described Daesong Bank as having about 50 outlets, but that figure does not establish current nationwide coverage. Enterprises usually work through a responsible bank, the Foreign Trade Bank or another functional bank according to their activity. The Foreign Trade Bank, also known as FTB or 조선무역은행, is the main institution for foreign-exchange services, trade settlements, payments, guarantees, trade credit and foreign-exchange control. A framework for foreign-invested and joint-venture banks exists. Foreign-invested banks require investment-management approval, and their formal rules address property protection, lawful profit transfers, tax and payment duties, and disputes. These protections remain subject to domestic approval, changing enforcement and international sanctions. Personal deposits and savings are accepted by state banks, including North Korean won savings and selected foreign-currency, fixed-term or trust-type products reported for some banks. No reliable national table of interest rates or fees is publicly available. No transparent national deposit-insurance scheme, universal guarantee or consistent compensation mechanism has been evidenced. Withdrawals can reportedly be difficult at the time and place a customer needs them. Low trust reflects earlier currency reforms and confiscatory experiences, while merchants often keep cash or use informal lending, transfer and foreign-exchange brokers as substitutes for commercial intermediation. These practices can provide access where formal banking is weak, but they do not provide the same legal status, records or protection as a bank transaction. The formal currency is the North Korean won, while United States dollars and Chinese yuan are materially used in market practice. Banks support domestic cash payments, account transfers, trade settlement, letters of credit, guarantees and remittances. The term 무현금류통 refers to cashless circulation and covers the policy direction toward more recorded electronic and account-based payments. Ordinary cross-border banking is largely unavailable. Humanitarian and diplomatic transactions generally require a sanctions exemption, national licensing and an approved channel. United Nations banking-channel guidance treats such exemptions as case-specific and generally limits their validity to up to nine months, while the timing of international settlement remains unpredictable. Domestic cards are electronic, prepaid or debit-like instruments issued by banks. Narae and Foreign Trade Bank cards are mainly associated with foreign currency, Koryo cards are linked to Koryo Bank, and Jŏngsŏng cards are linked to the Choson Central Bank and North Korean won payments. More than 20 domestic cards were reported by 2018, and 2024 field reporting described wider use for wages, state shops, markets and household payments. Card readers, ATMs, electricity, network reliability and public trust limit practical use. Foreign Visa or Mastercard issuance and broad acceptance have not been evidenced. The Electronic Payment Law was adopted on October 29, 2021, with July 13, 2023 listed as the latest version in the available research. It covers bank and non-bank electronic payment services using computers, financial cards, card terminals, mobile phones and ATMs. The Choson Central Bank is responsible for building an interbank system, while banks build systems for enterprises and individuals. The law sets a maximum of two business days for an enrolment decision. Domestic mobile payments, electronic wallets and QR payments are expanding, and Hwawon Electronic Bank reportedly had ATMs at 15 locations in late 2024, with at least 40 locations indicated in material referring to 2026. Nationwide rollout has been claimed, but independent coverage data is unavailable. Power and connectivity remain practical barriers, and payment data can support state monitoring of prices, taxes and liquidity while increasing surveillance risks. Bank services are mainly branch- and counter-based. Formal contracts and laws describe duties and complaint or dispute procedures, especially for foreign-invested banks, but no independent retail ombudsman, transparent consumer-protection authority or clearly evidenced deposit-insurance backstop has been identified. Fees and withdrawal conditions are not systematically public, and foreign-exchange spreads or transaction fees can depend on the bank and channel and may be opaque. Banks apply customer identification, beneficial-recipient identification, internal controls, suspicious-transaction reporting and financial-technology safeguards under anti-money-laundering and counter-terrorist-financing rules. Records must generally be retained for five or ten years depending on the record type. Financial institutions are expected to reject suspected ghost banks and criminal counterparties. State access to transaction data is high, while independent privacy and data-protection safeguards are weakly evidenced. FATF high-risk measures, United Nations Security Council resolution 1718 restrictions and United States designations affecting institutions such as the Foreign Trade Bank, Korea Kwangson Banking Corporation and the Agricultural Development Bank create severe correspondent-banking, settlement and asset-freeze risks. The restrictions include ending or limiting correspondent relationships and preventing new foreign branches or subsidiaries, so a domestic account does not provide normal access to global banking.