It has become more or less commonplace to say that over the last two decades North Korea has undergone a dramatic transformation. This transformation is often described by observers as “marketization from below.” Indeed, the old Leninist command economy dies a slow, if unheralded, death and a new market or semi-market economy has emerged to replace it.

However, markets can hardly function without financial services. By their very nature, businesses need to exchange currencies, as well as borrow and transfer money. Without a banking system, markets are hopelessly hamstrung. As yet, though, the North Korean “official” state-run banking system has