Damage Compensation Law of the Democratic People’s Republic of Korea (2005)

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손해보상법 2005 [Damage Compensation Law of the Democratic People's Republic of Korea (2005)] [tr Daye Gang].
Bluebook | Sonhaebosangbeob 2005 [Damage Compensation Law of the Democratic People's Republic of Korea (2005)] translated in Law and North Korea by Daye Gang, https://www.lawandnorthkorea.com/. 


Adopted on August 22, Juche 90 (2001), as Directive No. 2513 of the Presidium of the Supreme People’s Assembly

Amended and supplemented on April 19, Juche 94 (2005), as Directive No. 1083 of the Presidium of the Supreme People’s Assembly

CHAPTER I. BASICS OF DAMAGE COMPENSATION LAW

Article 1 (Objectives of Damage Compensation Law)

The Damage Compensation Law of the Democratic People’s Republic of Korea shall strictly adopt systems and order in the compensation of damage that has occurred by violating property or the person, to serve to protect the civil affairs rights and interests of institutions, enterprises, organizations and citizens.

Article 2 (Principle of damage compensation by party at fault)

The State shall cause relevant damage to be compensated to persons at fault for violating the property or person of institutions, enterprises, organizations and citizens. 

Article 3 (Principle of full compensation of damage)

The State shall fully compensate damage that has decreased or unable to be increased caused by violating the property or person of institutions, enterprises, organizations and citizens.

Article 4 (Principle of preventing increasing damage)

Preventing increasing damage that has occurred by violating property or the person under the possible conditions is the duty of the victim. The right to claim compensation by victims shall be restricted to the extent that damage has been increased by violating this duty. Expenses arising for the victim in preventing increasing damage may be added to the damage compensation sum.

Article 5 (Principle of damage compensation by storage manager)

The person with the duty to store and manage it shall have responsibility for compensation imposed for damage caused to subjects that should be stored and managed with high caution, such as wild beasts or explosive, flammable, or radioactive materials, even if he or she is not at fault. For damage that has occurred for reasons of the victim’s wilfulness, gross negligence, or unavoidable reason, the responsibility for compensation shall not be imposed on the person who has the duty to store and manage those subjects.

Article 6 (Principle of claiming property held as collateral)

A person whose property or person has been violated may make a claim to a court to be guaranteed damage compensation by holding the property of the person who did the violating as collateral. If it is finalized that holding the property as collateral had no basis, the person who claimed it shall provide compensation for damage incurred by holding it as collateral.

Article 7 (Principle of claim for damage compensation against a person with administrative or criminal responsibility imposed)

Even if a person who has caused damage by violating property or the person and has administrative or criminal responsibility imposed, the victim may claim damage compensation.

Article 8 (Subjects of regulation of law)

The Damage Compensation Law of the Democratic People’s Republic of Korea shall regulate the principles and order of the compensation of damage occurred by illegally violating the property or person of institutions, enterprises, organizations and citizens. The compensation of damage occurring in civil trade founded in contract shall follow the given regulations.

CHAPTER II. PARTIES TO DAMAGE COMPENSATION RELATIONSHIP

Article 9 (Qualifications for parties to damage compensation relationship)

Parties to a damage compensation relationship include the person with a right of claim for damage compensation whose property or person has been violated, and the person who has the duty to compensate damage. People with the right to claim for damage compensation are institutions, enterprises, organizations and citizens who have incurred damage and the successor to those rights, and the person with the duty to compensate damage are the institutions, enterprises, organizations and citizens who have caused damage or the successor to that duty.

Article 10 (People with the right to claim for damage compensation for dissolution, merger, division)

People with the right to claim for damage compensation against institutions, enterprises and organizations being dissolved shall be the liquidator; people with the right to claim for damage compensation against institutions, enterprises and organizations being merged or divided shall be the institutions, enterprises and organizations who take over those rights. The rights to a claim for damage compensation for deceased or missing citizens shall be given to his or her heir or property manager.

Article 11 (Rights to claim for damage compensation of legal representatives)

People with the right to claim for damage compensation may exercise their right of claim through their legal representative. The right to claim for damage compensation for a person who is incompetent to act shall be exercised by his or her parent or guardian.

Article 12 (Rights to abandon or transfer a claim for damage compensation, offsetting debt)

People with the right to claim for damage compensation may abandon or transfer a right of claim, reduce the claim amount, or may offset it with their debt. In cases where people with the right to claim for damage compensation is an institution, enterprise or organization, the foregoing paragraph shall not be applied.

Article 13 (Damage compensation by person who is incompetent to act)

The duty to compensate damage that has occurred by a person who is incompetent to act violating property or the person shall be imposed by a parent or guardian. In these cases, a guardian shall compensate with his or her property or with the property of the person who is incompetent to act that the guardian is managing. The duty to compensate damage by a person who is incompetent to act who has left the control of a parent or guardian shall be borne by the institutions, enterprises and organizations that control him or her.

Article 14 (Damage compensation by a person who is partially competent to act)

A person who is partially competent to act who has violated property or person has the duty to compensate damage that has occurred. However, the duty to compensate damage that has left the scope of his or her ability to pay shall be borne by the parent or the guardian.

Article 15 (Damage compensation by missing persons and deceased)

The duty to compensate damage of a missing person or deceased person shall be borne by his or her property manager or heir. In these cases, the damage shall be compensated within the scope of the property he or she is managing or that has been received as inheritance.

Article 16 (Damage compensation by responsible persons)

The duty to compensate damage that has occurred by violating the property or person in the process of performing the job taken on by a member of an institution, enterprise, or organization on a fixed or temporary basis, shall be borne by the institution, enterprise, or organization he or she is affiliated with. Institutions, enterprises and organizations shall compensate damage, then may require damage compensation according to the degree of fault from their member.

Article 17 (Duty of damage compensation for damage by domestic animals)

The duty to compensate damage for domestic animals violating property or the person shall be borne by the owner or manager. However in cases where the victim is at fault, the compensation may be reduced or not provided.

Article 18 (Damage compensation in cases where the portion of damage compensation cannot be separated)

In cases where the portion of damage compensation cannot be divided due to the related acts of many perpetrators, people with the right to claim for damage compensation may require the full compensation of damage from any perpetrator. A person who has compensated damage may require compensation of a given portion against a different perpetrator.

CHAPTER III. RESPONSIBILITY FOR COMPENSATION FOR PROPERTY VIOLATION

Article 19 (Basic requirements for responsibility for compensation for property violation)

Responsibility for compensation for property violation shall only be imposed for property damage that can be calculated by a sum of money. For subjects that cannot be calculated with a sum of money, the determination of a court shall be followed.

Article 20 (Compensation of land violation)

A person who has violated land like farmland shall restore it and shall provide compensation for damage that has occurred because of it. The calculation of the scope of restoration of violated land or of damage compensation shall be done by the land supervision institution or agricultural guidance institution.

Article 21 (Compensation for violation of forest)

A person who has recklessly deforested or secretly felled trees, or caused a forest fire, in a forest shall compensate the price of the forest resources and the expenses required in afforesting new forest resources. The price of forest resources and the expenses required for afforesting new forest resources shall be determined by the forest business administration guidance institution.

Article 22 (Compensation of violation of prohibited subjects)

A person who has hunted, gathered, or caused the decrease of animals and plants of prohibited subjects in a prohibited period or district, shall compensate the relevant damage. The damage compensation sum shall be determined by the land supervision institution.

Article 23 (Compensation of violation of crops)

A person who has violated crops shall compensate the expenses spent in cultivating them. The damage compensation sum shall be determined by the agricultural guidance institution.

Article 24 (Compensation of damage to scenic places, natural monuments)

A person who has caused damage to scenic places or natural monuments shall compensate the relevant damage. The damage compensation sum shall be determined by the scenic places, natural monuments protection guidance institution.

Article 25 (Compensation of violation of underground resources)

A person who has illegally gathered underground resources shall compensate that price. The price of underground resources shall be determined by the extraction industry guidance institution.

Article 26 (Compensation of violation of marine resources)

A person who has violated marine resources in fish farming shall compensate the expenses spent on the fish farming. A person who has fished in prohibited waters or who has violated designated species of fish, volume of the catch, period of fishing, or fishing methods, shall compensate the relevant damage. The damage compensation sum shall be determined by the marine products guidance institution or the land supervision institution.

Article 27 (Compensation of environmental pollution)

A person who sends out things like waste rock, wastewater, or harmful gases, or who has polluted the air, water, or soil by spilling oil, by exceeding designated environmental protection standards, shall compensate the relevant damage. The person with a duty to compensate damage and the damage compensation sum shall be determined by the environmental protection supervision institution.

Article 28 (Compensation for damage to buildings, facilities)

A person who has caused damage to buildings or facilities, or who has interfered with their use, shall compensate the expenses required in restoration and the damage caused to third parties by their violation. The damage compensation sum shall be determined by the supervisory institution concerned.

Article 29 (Compensation of damage to power transmission equipment machine equipment)

A person who has damaged property such as power transmission equipment, machine equipment, or transportation methods shall compensate the expenses required for the restoration and the damage caused to third parties by its violation. The damage compensation sum shall be determined by the supervisory institution concerned.

Article 30 (Compensation of damage to cultural artefacts)

A person who has damaged cultural artefacts or robbed a grave, trafficked, or stolen, the relevant damage shall be compensated. The damage compensation sum shall be determined by the cultural artefacts preservation guidance institution.

Article 31 (Compensation for violation of raw materials and resources)

A person who has made unusable, misused, or stolen things such as raw materials, resources, or semi-finished products, shall compensate the price of the property and the business administration losses occurring because of the violation. The damage compensation sum shall be determined by the price determining institution.

Article 32 (Compensation for violation of property such as products, fertilizer)

A person who violates property such as products, equipment, books, agricultural produce, or domestic animals, shall compensate for the given damage. Damage compensation shall be done at the retail or purchase price before the property was violated, or the price where the realization of sales was possible.

Article 33 (Compensation of violation of insurance property)

A person who has violated insured property may require compensation from the perpetrator for damage that is not made up by insurance compensation. An insuring institution who has paid insurance compensation may receive the relevant sum of money as compensation from the perpetrator.

Article 34 (Ownership of leftover compensated property)

A perpetrator who has wholly compensated the price of the violated property shall have ownership over the leftover portion of value of that property.

Article 35 (Compensation for violation of bond securities and credit settlement securities)

A person who has violated the trade of bond securities such as savings or insurance, and credit settlement securities such as cheques and promissory notes, or counterfeited them, shall compensate the relevant damage. In cases where there is fault in the victim for the damage that has occurred, among the damage that has occurred because of the violation of the securities, the rights to a claim for damage compensation shall be restricted to that extent.

Article 36 (Compensate for copyright violation)

A person who has caused property loss by violating copyright shall compensate the relevant damage. In cases where it is proved that content that comes to a person’s knowledge in the deliberation or editing of literary writings was presented or emulated under his or her name, the relevant damage shall also be compensated. The damage compensation sum shall be determined by the copyright guidance institution.

Article 37 (Compensation of violation for inventions and patents)

A person who has caused property loss by violating inventions and patents shall compensate the relevant damage. In cases where it is proved that a person has stolen scientific technique invention materials from other people and presented them under his or her name, or handed them over to a third party to receive an invention or patent, that damage shall also be compensated. The damage compensation sum shall be determined by the invention guidance institution.

Article 38 (Compensation for violation of trademark rights and industrial design rights)

A person who has caused damage by violating rights related to things such as logos, industrial designs, or enterprise names, the relevant damage shall be compensated. In these cases, things such as logos, industrial designs, and enterprise names must be things that have been registered with the relevant institutions.

Article 39 (Compensation for unavoidable property violation)

In cases where property has been unavoidably violated to save the property of institutions, enterprises, organizations and citizens, their owners shall compensate the damage according to the portions of the property saved. In these cases, the volume of saved property must be greater than the volume of the property that has been violated.

CHAPTER IV. RESPONSIBILITY FOR COMPENSATION FOR VIOLATION TO THE PERSON

Article 40 (Basic requirements of responsibility for compensation for violation to the person)

Responsibility for compensation for violation to the person shall be imposed for damage caused by violating the health or life of people. In cases of detaining the freedom or violating the character or honour of people and causing them mental pain, responsibility for damage compensation shall also be imposed.

Article 41 (Compensation of health violation)

A person who has violated the health of people shall compensate their treatment expenses and the income loss sum caused by them not being able to participate in labour. The treatment expenses for treatment for health recovery received without cost from a medical institution shall be received by the relevant authorities and paid into the State coffers.

Article 42 (Compensation of labour capacity loss)

A person who has lost the part or whole of his or her ability to work shall compensate treatment expenses for health recovery, income loss sum, and the support fee for people who were receiving support from the victim.

Article 43 (Compensation of income loss sum, support fee)

Damage compensation for income loss sums shall be done until the ability to work of the victim has recovered. Compensation for a support fee shall be done until the ability to work is obtained in cases of minors, and for a person who requires continued support, it shall be done until death.

Article 44 (Compensation of death)

In cases where the death of a victim is caused because of a violation to the person, things such as his or her treatment expenses during life, funeral expenses, or support fees shall be compensated.

Article 45 (Rights to a claim for damage compensation that cannot be transferred)

Rights to a claim for damage compensation that have occurred because of a violation to the person may not be transferred.

Article 46 (Damage to the person that shall not be compensated)

Damage shall not be compensated for damage done to a trespasser to protect the health or life of the self or of a third party. In these cases, it must have been to directly prevent a violation to the person of the self or of a third party, and must have happened within the scope of defence.

CHAPTER V. FINALIZATION AND COMPENSATION METHOD FOR DAMAGE COMPENSATION SUM

Article 47 (Finalization of damage compensation sum and basic requirements of compensation method)

In cases where institutions, enterprises, organizations and citizens have had their property or person violated, the damage must be secured in time. Securing damage shall be done by getting the perpetrator to orally confirm it or drafting a confirmation document. In cases where a confirmation document draft is rejected or delayed, it shall be raised with the people’s safety institutions or a third party shall be caused to attend, and a confirmation document shall be drafted.

Article 48 (Finalization of damage compensation sum according to agreement)

The damage compensation sum for property violation of a citizen shall be determined by agreement of the parties. In cases where the parties cannot agree between each other, the damage compensation sum shall be determined by the court based on things such as the retail or purchase price of the violated property.

Article 49 (Calculation of damage compensation sum)

The calculation of a damage compensation sum for property of institutions, enterprises and organizations that have not been able to increase because of property violation shall be the average of the profits obtained every year for the last three years before the violation. In these cases, the calculation of a damage compensation sum may be requested of specialist institutions including financial banking institutions.

Article 50 (Calculation of compensation sums where the volume of damage is not proved)

In cases where the damage is lost growth because of the property violation and the volume of damage cannot be proven, the calculation of the damage compensation sum shall be 5% of the price of the property that has been violated.

Article 51 (Calculations of damage compensation sum for violation to the person)

The calculation of a damage compensation sum for violation to the person shall be based on the confirmation documents of related institutions, including public health institutions. The calculation of income loss sum for a person whose health has been violated may be done as an average of the living expenses over 6 months of ordinary employment before the damage was received.

Article 52 (Raising re-evaluation of damage compensation sum)

In cases where the degree of loss of ability to work changes after the damage compensation sum related to the violation to the person has been determined, the parties to a damage compensation relationship may apply to the court to re-evaluate the damage compensation sum.

Article 53 (Legal limitations of claim for damage compensation)

A person who has had his or her property or person violated must make a claim for damage compensation within the legal limitations period. However, in cases where property or the person has been gravely violated, damage compensation may be claimed regardless of legal limitations.

Article 54 (Duty of damage compensation)

A person with a duty to compensate damage must compensate damage in time. In cases where there is no compensation ability, it must be compensated at times when it comes possible. People with the right to claim for damage compensation may claim damage compensation again to the court according to the availability of the ability to compensate by the person with a duty to compensate damage.

Article 55 (Form of damage compensation sum)

Damage compensation may be done with a sum of money. Violated property may be restored to its original state according to the relevant law or the agreement of the parties, or it may also be compensated with property of the same type or a different type.

Article 56 (Methods to resolve differences in opinion)

Differences in opinion related to damage compensation for violation to property or the person shall be resolved by method of agreement. In cases where it cannot be resolved by method of agreement, it shall be resolved by application to the court.

Last updated 9 November 2020

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