The DPRK is paying close concern to providing favourable legal environment in line with the positive development of Wonsan-Mt Kumgang International Tourist Zone and the growing enthusiasm among investors.
Full text of the law is available here.
1. Favourable Legal Environment for Investment
The DPRK fully provides legal guarantee for foreign investment and business activities. Firm guarantee is provided by the Constitution, the major law of the state, for the equity and contractual joint ventures with foreign investors and for the establishment and operation of various types of enterprises in special economic zones including Wonsan-Mt Kumgang International Tourist Zone.
The Socialist Constitution of the DPRK stipulates in its Article 37, Chapter 2:
“The state shall encourage institutions, enterprises and organizations in our country to conduct equity or contractual joint ventures with foreign corporate bodies and individuals, and to establish and operate enterprises of various kinds in special economic zones.”
Scores of laws and regulations related with foreign investment including the Law on Foreign Investment, the Law on Equity Joint Venture, the Law on Contractual Joint Venture, the Law on Wholly Foreign-owned Enterprises, the Law on Foreign-invested Bank, the Law on Foreign-invested Enterprises and Foreign Individual Tax and the Labour Law on Foreign-invested Enterprises were enacted in the DPRK
Having started the development of special economic zone with the Rason Economic and Trade Zone in 1991, the DPRK has so far instituted over 20 special economic zones, and in this regard have enacted relevant laws and regulations including the Law on the Rason Economic and Trade Zone, the Law on the Kumgangsan Special Zone for International tourism and the Law on Economic Development Parks.
With the conclusion of bilateral agreements on encouraging and protecting investment and agreements on preventing double taxation with scores of other countries, the DPRK provides international legal environment worldwide.
2. Legal Measures to Develop the Wonsan-Mt Kumgang International Tourist Zone into a World Tourist Zone
The Law on Economic Development Parks, the major law applied to special economic zones in the DPRK including the Wonsan-Mt Kumgang International Tourist Zone, has been adopted. And for its enforcement various regulations were enacted, including those on operating management organs in the economic development parks, on the establishment and management of businesses, on labour and on real estate, etc.
The law on Kumgangsan Special Zone for International Tourism was adopted and regulations and rules were enacted for its enforcement.