Promising Projects for Economic Development Zones

At present the DPRK pursues a policy of building Korean-style economic development zones across the country.

Many development projects are flourishing under the auspices of the government.

The Rason Economic Trade Zone has already been designated as a special economic zone and turned into a hub for international transit transport, trade, investment, banking, tourism and service industry. Development of the Kaesong Industrial Park, Mt. Kumgang International Tourism Special Zone and Hwanggumphyong-Wihwa Islet Economic Zone is gaining in scope.

Recently the government adopted a resolution that in conformity with the ever-changing external environment and realities, 21 special economic zones would be set up in provinces to promote international economic cooperation and exchanges, and they would be developed into regional bases that render a contribution to developing the economy of the country and improving its people’s living standards.

It has taken appropriate legal and administrative measures to implement the above policy in line with the requirements of the developing realities.

Setting up economic development zones helps towards concentrating excellent productive forces that are available at home and abroad; they are certain to bring huge benefits to foreign as well as domestic investors.

The country has an environment and conditions favourable for accelerating these development projects.

Its geopolitical position is ideal; as a key link between China, Russia and other countries in Northeast Asia and those in the Pacific, it can play a pivotal role in speeding up international cargo transportation and distribution of strategic energy resources. For this reason its international prestige is increasing with each passing day.

The government has put in place a system of preferential treatment in tax, real estate transactions, business establishment, trade and other fields, and provides an environment favourable for investors in many aspects such as free entry of personnel, delivery of materials, provision of labour, sale of products, sci-tech services, banking and insurance.

It has ensured that economic development zones are set up in suitable locations and that all kinds of procedures and land lease terms, including fees and periods, are optimized for the convenience of foreign-invested businesses.

As part of a measure to attract investment in land and infrastructure development, it encourages international tender and other separate and joint development modes by investors in and out of the country, and demands that they adhere to the principle of complete equality and mutual benefit.

Most appealing to the foreign investors are the great spiritual strength of the local workers, their general knowledge and high technical skills, their admirable sense of organization and discipline at work.

In accordance with the fundamental principle of international investment relations the government has taken adequate measures to ensure absolute investment safety, including the most-favoured-nation treatment for all the foreign investors, legal guarantee for the property they have invested, personal safety and dispute settlement.

According to its positive investment policy, many other projects are going full steam ahead, which include the Hungnam industrial development zone, Chongjin economic development zone, Jindo exports-processing zone, Orang agricultural development zone, Sinuiju international economic zone, Chongsu tourism development zone and Wonsan-Mt. Kumgang International Tourism Special Zone.

An increasing number of businesses in Asia and Europe are greatly interested in these economic development zones and are poised to invest in them.

The government will, in the future, too, take a series of necessary measures for the benefit of the investors from the countries that respect the sovereignty of the DPRK and are friendly to it.

Prof. & Dr. Jo Chang Jun

of the Trade and Economics Department at the University of National Economy