Today the DPRK accelerates on a large scale establish the economic development zones in each province suit to its actual conditions and develop in a peculiar way in keeping with the dynamic general offensive to build a socialist thriving nation under the wise leadership of the respected Comrade Kim Jong Un.
A Law on Economic Development Zone was adopted as a decree of the presidium of the Supreme People’s Assembly of the DPRK on May 29, 2013, which resulted in the creation of a new legal environment for Economic Development Zone in the DPRK. The DPRK established 13 Economic Development Zones on November 21, 2013 and 6 on July 23, 2014 through the preparations made in accordance with the adoption of the law. As a result, it established the economic development zones of different kinds and functions including industrial development zone, agricultural development zone, export and processing zone, tourist development zone, advanced technology development zone, etc. that suit to the actual conditions in each province.
Economic development zone is a special economic zone in which a preference is ensured in economic activities. As it is the zone whose main purpose is to induce foreign capital, the foreign investment enterprises are provided more preferential conditions for their economic activities than in other local regions in the field of land utility, labor borrowing, payment and so on.
The DPRK declared Rason Economic Trade Zone as a special economic zone for the first time in the early 1990s and has directed efforts to the strengthening of regional economic cooperation while consistently improving the investment environment. In addition, it has established and operated special economic zones including Kaesong Industrial Zone and Kumgangsan International Special Tourist Zone in consideration of the natural and geographical features and the advantages of regional economic cooperation.
In this process, it has accumulated certain experience in establishing, managing and operating special economic zones and, on its basis, taken measures to establis
Establishing economic development zones in each province is to hasten the development of local industries.
The DPRK is now making efforts to bring about a turn in improving the people’s livelihood and building an economic giant by giving fullest play to the already-built foundations of independent national economy and every potentiality.
Local industry holds very important position and role in giving fullest play to the already-built foundations of independent economy and every potentiality. In particular, development of local industry is of weighty importance in improving the people’s livelihood as the local industry holds big share in the production of light industry.
The DPRK is to distinctively establish and operate the economic development zones in each province in keeping with its features in order to hasten the technical renovation of local industry and actively increase its production, thus making it contribute to the further improvement of the people’s living as a whole.
For this end, the DPRK has newly formulated the law on economic development zone to take measures for establishing economic development zones in keeping with the actual conditions in each province, aside from the previous special economic zone.
According to the state strategy for economic development, it considers it as a principle to establish as the economic development zone in each province the ones that are favorable for the external economic cooperation and exchange, the ones that can contribute to the development of economy, science and technology of the country, the ones that have certain distance with residential districts and the ones that do not violate the state reservations.
They are divided into the central economic development zone and the local one according to management belongs, and the central special economic zone guidance organ is in charge of the practical works to establish the economic zone. The local economic development zone guidance organs are managed under the guidance and assistance of the central special economic zone guidance organ and relevant provincial(municipality) people’s committees.
Legal guarantee is ensured in the economic development zones to protect legally the investors’ rights and interest enabling them to conduct free economic activities. Article 7 of the DPRK Law on Economic Development Zone stipulates that “The state does not nationalize nor confiscate the investors’ properties but gives notice in advance when the state confiscates or utilizes them for public interest in case of need or for a while and compensates their value in time and fully.”
Investors can establis
Preference is given in levy, labor borrowing and utility of land in the economic development zones to be newly established like other special economic zones. In particular, developing enterprise will have a preferential right in gaining the right to management such as tourism and hotel business in the economic development zone and is preferentially free from the tax payment in its property and infrastructure facilities and in the operation of public facilities.
The materials for building economic development zone and the materials that are imported for processing trade, transit trade and barter trade, the materials for production and management of enterprise, the goods for export, the daily commodities for investors and other materials agreed by the state can be freely imported and exported free of duty as the preferential tariff system is applied in the economic development zone.
Foreign currency can be freely imported and exported and a legal benefit and other incomes can be remitted out of the economic development zone without any limitations.
Foreign business that invest for the economic development zone can independently and freely conduct their management activities under the legal protection and guarantee for the invested properties, personal safety and intellectual property rights and are provided with conveniences for such procedures as application, deliberation, approval, registration, etc. that are related with the establis
The DPRK can develop external economic relations in a many-sided way and further expand the investment relations with other countries in the world thanks to the establis
The DPRK, in the future, too, will continuously expand the many-sided economic cooperation with other countries in the world.
