Suggested citations
AGLC4 | 중앙은행법 2015 [Central Bank Law of the Democratic People's Republic of Korea (2015)] [tr Daye Gang].
Bluebook | Jungangeunhaengbeob 2015 [Central Bank Law of the Democratic People's Republic of Korea (2015)] translated in Law and North Korea by Daye Gang, https://www.lawandnorthkorea.com/.
Adopted on September 29, Juche 93 (2004), as Directive No. 686 of the Presidium of the Supreme People’s Assembly
Amended and supplemented on July 22, Juche 104 (2015), as Directive No. 576 of the Presidium of the Supreme People’s Assembly
CHAPTER I. BASICS OF CENTRAL BANK LAW
Article 1 (Objectives of Central Bank Law)
The Central Bank Law of the Democratic People’s Republic of Korea shall strictly adopt systems and order in the work of the Central Bank to correctly implement the designated currency policy of the State and shall serve to improve and strengthen finance work.
Article 2 (Issuing bank)
The Central Bank is the issuing bank of the Democratic People’s Republic of Korea. The State shall raise the ability and role of the Central Bank to strengthen centralist discipline in finance work.
Article 3 (Central Bank notes and principle of distributing designated currency)
The designated currency of the Democratic People’s Republic of Korea is the Central Bank note. The State shall rationally do currency adjustment and currency distribution organization work to stabilize the value of the currency and the exchange rate.
Article 4 (Principle of finance work)
Finance work in the Democratic People’s Republic of Korea shall be done according to what the Central Bank has determined. The State shall improve and strengthen finance work in conformity with the requirements of actual development.
Article 5 (Principle of guidance and control for finance work)
The State shall correctly adopt a guidance system for finance work and must strengthen control over it.
Article 6 (Principle of strengthening the material and technical foundations of the finance sector)
The State shall strengthen scientific research to develop finance work and shall put great strength in strongly managing its material and technical foundations.
Article 7 (Exchange and cooperation in the finance field)
The State shall develop exchange and cooperation in the finance field with other countries and international organizations.
Article 8 (Finance work in special economic zones)
Finance work in special economic zones shall follow given regulations.
CHAPTER II. ORGANIZATION OF THE CENTRAL BANK
Article 9 (Composition of the Central Bank)
The Central Bank shall be composed of the President and a few Vice-Presidents. The President represents the Central Bank and shall guide the overall affairs of the Central Bank. The Vice-President shall assist the work of the President and shall legally represent his or her work in cases where the President is not present. The required divisions shall operate in the Central Bank.
Article 10 (Organization of the Bank Board of Directors)
The State shall strengthen collective consultation in finance work and shall organize and operate a non-standing Bank Board of Directors to adopt the required measures. The Bank Board of Directors shall be composed of the Chair, Directors, and required members of the relevant institutions. The administrative affairs of the Bank Board of Directors shall be done by the Central Bank.
Article 11 (Bank Board of Directors Chair)
The Chair of the Bank Board of Directors shall be held by the President of the Central Bank. The Chair shall take responsibility for his or her work before the Cabinet.
Article 12 (Location of Central Bank)
The location of the Central Bank shall be Pyongyang.
Article 13 (Branches, duties, authority of the Central Bank)
The Central Bank shall organize branches in required areas. Branches shall organize the currency adjustment and designated currency distribution in the area concerned and shall supervise finance work. Branches shall regularly report updates on their work to the Central Bank.
Article 14 (Training of bank worker)
Only a person who has the relevant qualifications may become a Central Bank worker.. The Central Bank shall strongly manage the bank worker training base and must grow competent workers in a planned way.
CHAPTER III. CENTRAL BANK NOTES
Article 15 (Basic units of Central Bank note)
The basic unit of the Central Bank note is the “won”. The work of determining the type and form of Central Bank notes shall be done by the Cabinet.
Article 16 (Manufacture of Central Bank notes)
The scale of manufacture of Central Bank notes shall be determined by the State. The Central Bank must organize the manufacturing work of Central Bank notes within the designated scale.
Article 17 (Issue of coinage or commemorative currency)
The Central Bank may issue coinage or commemorative currency as necessary. The form, type, and scale of issue of coinage or commemorative currency shall be determined by Cabinet.
Article 18 (Exchange of Central Bank notes)
Institutions, enterprises, organizations and citizens must securely handle Central Bank notes. The Central Bank shall recover in time Central Bank notes that have become unable to be distributed and must exchange them with new Central Bank notes.
Article 19 (Transportation process and method of Central Bank notes)
The transportation process and method of Central Bank notes shall be determined by the Central Bank. The relevant authorities must abide strictly by the designated transportation process and method of Central Bank notes.
Article 20 (Incineration of Central Bank notes)
The incineration of Central Bank notes shall be done by the Central Bank under the supervision of the designated currency incineration committee. In these cases, the approval of the Cabinet shall be received.
Article 21 (Storage of Central Bank notes)
The storage of Central Bank notes may only be done in vaults where safety is guaranteed. Management of the vault may only be done by a designated worker.
Article 22 (Prohibition on counterfeiting or falsification of Central Bank notes)
Central Bank notes may not be counterfeited or falsified. Institutions, enterprises, organizations and citizens must not possess or use counterfeited or falsified Central Bank notes, and must be presented to the Central Bank in time.
Article 23 (Prohibition on transferring Central Bank notes out of the country)
Central Bank notes may not be taken out to other countries. However, things such as samples of Central Bank notes or Central Bank notes whose distribution has been suspended may be transferred out to other countries by receiving the approval of the Central Bank.
CHAPTER IV. ORGANIZATION OF CURRENCY DISTRIBUTION
Article 24 (Drafting of designated currency issuing plan)
The Central Bank must correctly adopt a designated currency issuing plan in conformity with the requirements of the economic development. The designated currency issuing plan must receive the approval of the State.
Article 25 (Issuing designated currency)
The Central Bank must issue designated currency within the scope of approval of the State. Issued currency shall be sent out to distribution or recovered from the distribution process using methods such as borrowing from a finance institution, or buying and selling foreign currency, precious minerals, or securities.
Article 26 (Currency adjustment)
Currency adjustment is important work to reduce or extend the volume of currency in circulation to harmoniously assure currency distribution. The Central Bank must organize currency adjustment work by period and by area.
Article 27 (Organization of settlement)
The Central Bank must speedily and correctly organize settlements to expedite currency distribution. The work of determining the settlement method shall be done by the Central Bank.
Article 28 (Borrowing by finance institutions)
The Central Bank shall lend to finance institutions that are deficient in currency funds. A finance institution seeking to receive a loan must submit a loan application document to the Central Bank.
Article 29 (Buying and selling designated currency)
The Central Bank may buy and sell currency with finance institutions to adjust currency distribution and stabilize the value of currency. Finance institutions may also buy and sell currency with the Central Bank as necessary.
Article 30 (Institution and conciliation of standard exchange rate and interest rate)
The work of instituting and conciliating a standard exchange rate and interest rate shall be done by the Central Bank. Finance institutions must apply exchange rates and interest rates in conformity with the reality within the scope of the standard exchange rate and interest rate determined by the Central Bank.
Article 31 (Management of precious minerals)
The management of precious minerals shall be done by the Central Bank. The Central Bank must organize and conduct the work of commanding, storing, using, and selling precious minerals such as gold and silver. Foreign sales of precious minerals may also be done by finance institutions authorized by the Central Bank.
Article 32 (Opening a deposit account)
Finance institutions must open a deposit account at the Central Bank. Deposits made to the Central Bank must be used for settlements between finance institutions or for accumulating reserve funds for payment.
Article 33 (Registration and manage of issued bonds)
The Central Bank shall register and manage issues of bonds approved by the State. Institutions that have received the approval of issued bonds must submit a bond issue registration report to the Central Bank. Bonds that have been issued may be traded at finance institutions.
Article 34 (Commanding fixed assets)
The Central Bank shall comprehensively command the fixed assets of the State and must rationally use them in institutions, enterprises and organizations. The command of fixed assets must be done by sector, by the type of goods, and by the sum of money.
Article 35 (Exchange of financial information)
The Central Bank must normally do information exchanges related to financial or money laundering and preventing terrorism financing with finance institutions or relevant authorities. Finance institutions and relevant authorities should acquire materials required for the work of preventing financial and money laundering and terrorism financing and analyse them, and must notify in time the Central Bank or relevant authorities.
Article 36 (Institution of finance accounting items and calculation methods)
A Central Bank must correctly designate finance accounting items and calculations and settlement methods for finance institutions. Finance institutions must report comprehensive finance accounting materials to the Central Bank in the designated period.
Article 38 (Synthesis of currency distribution materials)
The Central Bank must correctly do statistical synthesis, investigation, analysis, and forecasting about the true state of currency distribution. Synthesised materials must be reported to the Cabinet.
Article 38 (Responsibility for state coffers)
The Central Bank shall perform the work of taking responsibility for the state coffers. The Central Bank shall take in the State budget income under the connection of the central financial guidance institution, and must only make expenditures within the scope of income.
Article 39 (Other finance work)
The Central Bank can do finance work within the scope approved by the Cabinet.
CHAPTER V. GUIDANCE AND CONTROL OVER FINANCE WORK
Article 40 (Guidance for finance work)
Guidance over finance work shall be done by the Central Bank under the guidance of the Cabinet. The Central Bank shall normally investigate the work activities of the finance institutions and must guide them to do them correctly. Finance institutions and the relevant authorities must assure in time the materials required by the Central Bank.
Article 41 (Approval of establishment of finance institution)
An institution seeking to establish a finance institution must submit an establishment application document to the Central Bank. The Central Bank shall review the application document and must approve or reject the establishment. Finance institutions where the establishment has been approved must have an operating permit issued.
Article 42 (Dissolution and merger of finance institutions)
Finance institutions that are sought to be dissolved or merged must submit a dissolution or merger application document to the Central Bank. The Central Bank shall review the application document, recover the operating permit, and must guide the settlement work.
Article 43 (Supervision and control for finance work)
Supervision and control work for finance work shall be done by the Central Bank and the relevant supervision and control institution. The Central Bank and the relevant supervision and control institutions shall strictly supervise and control the work of finance institutions.
Article 44 (Damage compensation)
In cases where the interests of institutions, enterprises, organizations and citizens have been damaged by organizing finance work in a disordered way, the relevant damage shall be compensated.
Article 45 (Penalties)
In cases where finance work has been conducted without the approval of the State and caused interference to currency distribution, the work will be suspended or a penalty shall be imposed.
Article 46 (Forfeit of qualifications grades)
In cases where relevant documents have not been submitted to the Central Bank in the determined period, or if they have been drafted and submitted without being in accordance with the facts, the qualifications grades of the given worker shall be lowered or forfeited.
Article 47 (Administrative or criminal responsibility)
Responsible workers of institutions, enterprises and organizations and individual citizens who cause grave consequences in finance work shall have administrative or criminal responsibility imposed depending on the gravity.
Last updated 15 September 2020