Suggested citations
AGLC4 | 화폐유통법 2009 [Monetary Circulation Law of the Democratic People's Republic of Korea (2009)] [tr Daye Gang].
Bluebook | Hwapye Yutongbeob 2009 [Monetary Circulation Law of the Democratic People's Republic of Korea (2009)] translated in Law and North Korea by Daye Gang, https://www.lawandnorthkorea.com/.
Adopted on November 26, Juche 87 (1998), as Directive No. 285 of the Presidium of the Supreme People’s Assembly
Amended and supplemented on June 5, Juche 92 (2003), as Directive No. 3789 of the Presidium of the Supreme People’s Assembly
Amended and supplemented on November 3, Juche 98 (2009), as Directive No. 392 of the Presidium of the Supreme People’s Assembly
CHAPTER I. BASICS OF MONETARY CIRCULATION LAW
SECTION 1. ETC
Article 1 (Objective of Monetary Circulation Law)
The Monetary Circulation Law of the Democratic People’s Republic of Korea shall consolidate monetary circulation by strictly adopting systems and order in cash and cashless circulation, shall rationally conduct economic administration, and shall serve to improve people’s standard of living.
Article 2 (Official Currency)
The official currency of the Democratic People’s Republic of Korea is the Central Bank note. The standard unit of the Central Bank note is the <won> and the supplementary unit is the <jon>. The State shall promote the function and role of the currency to strengthen the independent currency system.
Article 3 (Principle of Organizing Monetary Circulation)
Monetary circulation in the Democratic People’s Republic of Korea consists of cash circulation and cashless circulation. The State shall organize cash circulation and cashless circulation according to their nature and shall cause them to be combined properly.
Article 4 (Principle of Monetary Circulation)
Smoothly conducting cash circulation is the fundamental way to guarantee the stability of currency. The State shall strengthen centralist regulation in cash circulation and shall cause .. the cash circulation accountability system to be thoroughly executed by region.
Article 5 (Principle of Cashless Circulation)
Organizing cashless circulation correctly is a compulsory requirement for guaranteeing the circulation of goods between institutions, enterprises and organizations in a planned way. The State shall cause the scope of cashless payment to be expanded according to the scale of the economy growing and the connections between sectors and areas in the national economy growing closer.
Article 6 (Principle of Circulation of Currency)
Guaranteeing products is the basic guarantee to consolidate currency circulation. The State shall increase the production of products to increase the purchasing power of currency and shall promote its circulation.
Article 7 (Principle of Prohibition on Circulation of the Currency of Other Countries)
The currency of other countries may not be circulated in the area of the Democratic People’s Republic of Korea. The State shall determine the exchange rate of the Central Bank note and the currencies of other countries.
Article 8 (Principle of Administration of Central Bank Notes)
The State shall properly administer Central Bank notes and shall strengthen control over them. Central Bank notes may not be taken out to other countries. However, things such as samples of Central Bank notes or Central Bank notes which circulation has been suspended may be taken out to other countries, in accordance with an arrangement concluded with a bank of another country.
Article 9 (Exchange and Co-operation in the Monetary Circulation Field)
The State shall develop exchange and co-operation in the monetary circulation field with other countries and with international organizations.
Article 10 (Monetary Circulation in Special Economic Zones)
Monetary circulation in Special Economic Zones shall follow the relevant regulations.
CHAPTER II. CASH CIRCULATION
Article 11 (Organization of Cash Circulation)
Cash circulation is a form of monetary circulation applied in places like trade in products between institutions, enterprises, organizations and citizens. The Central Bank must organize monetary circulation in a planned way.
Article 12 (Drafting Cash Plan)
Cash plans shall be adopted by area and by item, based on the national economic plan and the financial plan every year. The Central Bank shall adopt the cash plan and receive the approval of the Cabinet.
Article 13 (Implementation of Cash Plan)
The Central Bank institution and institutions, enterprises and organizations must correctly implement cash plans. The Central Bank must properly command the implementation progress of the cash plan.
Article 14 (Adjustment of Cash Circulation)
The Central Bank must adjust cash circulation in a planned way to guarantee an appropriate amount of cash circulation. The adjustment of cash circulation must be done within the scope of the cash plan and using adjustment currency. In cases where it is sought to adjust cash circulation because the cash plan has been exceeded, the approval of the Cabinet must be received.
Article 15 (Issue of Marketable Securities)
A Central Bank may issue marketable securities to adjust cash circulation. In this case, the approval of the relevant institution must be received.
Article 16 (Guarantee of Cash Income)
Institutions, enterprises and organizations shall staunchly increase income from things such as product sales, public food distribution and community service. The people’s consumer goods production plan and the product circulation amount plan must be implemented without fail.
Article 17 (Income of Cash Required for Regional Living)
Local political institutions and the Central Bank institution must mobilize their income sources without exception to guarantee cash necessary for regional living with their own income.
Article 18 (Deposit of Cash)
Institutions, enterprises and organizations must cause imported cash to be deposited in time at the Central Bank institution. The Central Bank institution shall determine the period for deposit of cash of institutions, enterprises and organizations and shall accept cash.
Article 19 (Payment in Cash)
Institutions, enterprises and organizations that wish to use cash must submit an application to pay in cash to the Central Bank institution. The Central Bank institution must correctly review the application to pay in cash and must pay the cash. Cash received must be used according to the determined purpose and standards.
Article 20 (Cash Payment Date)
The Central Bank institution must determine a payment date for each institution, enterprise and organization so it can guarantee the uniformity of cash payments by period. The payment date of labour remuneration funds for large-scale enterprises may also be decided by workplace.
Article 21 (Storage of Cash)
Institutions, enterprises and organizations must correctly register progress on income and expenditure of cash and must store the cash in a vault which guarantees safety. Management of the vault shall be done only by designated workers.
Article 22 (Regulations on Cash Retention Limit)
The cash retention limit of the Central Bank institution shall be determined by the Central Bank. However, the cash retention limit of an institution, enterprise or organization shall be determined by the relevant Central Bank institution.
Article 23 (Adherence to Cash Retention Limit)
Institutions, enterprises and organizations shall strictly abide by the cash retention limit. Cash which exceeds the retention limit must be deposited into the Central Bank institution or must be saved.
Article 24 (Mobilization of Idle Money)
Local political institutions and Central Bank institutions shall organize savings and insurance work for the masses to staunchly mobilize idle money.
Article 25 (Guarantee of Confidentiality and Reliability of Saving)
Citizens must consciously participate in saving. The Central Bank institution must guarantee the confidentiality and reliability of saving.
Article 26 (Transportation of Cash)
Central Bank institutions, institutions, enterprises and organizations must safely transport cash. A traffic conveyance institution that has received a request for transportation of cash must transport cash in time. In necessary cases, the transportation of cash may be done with the escort of armed security members.
Article 27 (Exchange and Recovery of Money)
The Central Bank must exchange and recover old money and money that has become unusable in time. Citizens must handle money surely.
CHAPTER III. CASHLESS CIRCULATION
Article 28 (Organization of Cashless Circulation)
Cashless circulation is a form of currency circulation applied to things like trade in means of production between institutions, enterprises and organizations. The Central Bank must have absolute control over monetary funds in a standardized way and must rationally organize cashless circulation
Article 29 (Cashless Payment)
Cashless circulation shall be realized through cashless payment. Cashless payment shall be done by the Central Bank institution.
Article 30 (Opening an Account)
Institutions, enterprises and organizations must keep a bank account (account) with the Central Bank institution. A supplementary account may also be kept as necessary.
Article 31 (Approval of Account)
An institution, enterprise or organization that wishes to keep a bank account must submit an application for account approval to the Central Bank institution. The Central Bank institution must review the application for account approval and must approve the account.
Article 32 (Payment for Goods Following Plans and Contracts)
The Central Bank institution shall properly administer payments for goods being circulated according to the national economic plan and to contracts. Payments may not be made for goods that are not in the national economic plan or in contracts.
Article 33 (Payment and Demand for Monetary Funds)
Institutions, enterprises and organizations that wish to pay or demand monetary funds must make a payment document and submit it to the Central Bank institution. The Central Bank institution shall review the payment document and must make the payment only in cases where the account has those monetary funds.
Article 34 (Exchange Payments)
The Central Bank shall organize exchange payments between branches to promote the circulation of monetary funds. Central Bank institutions must do payments in time.
Article 35 (Payments for State Budget)
The Central Bank institution must correctly do payments related to implementing the State budget. Payments for income and expenditure for the State budget shall be done according to budgetary affiliation and expenditure must only be done within the scope of income.
Article 36 (Improvement of Payment Methods)
The Central Bank institution must reduce changes in payment so that the circulation of funds approaches the circulation of goods. The Central Bank must improve payment methods in conformity with the requirements of actual development.
CHAPTER IV: GUIDANCE AND CONTROL OVER MONETARY CIRCULATION WORK
Article 37 (Fundamental Requirements of Guidance and Control for Monetary Circulation Work)
Correctly doing guidance and control for monetary circulation work is an important way to smoothly guarantee monetary circulation. The State shall adopt a guidance system for monetary circulation work and shall strengthen control.
Article 38 (Guidance Institution for Monetary Circulation Work)
Guidance for monetary circulation work shall be done by the Central Bank under the standardized guidance of the Cabinet. The Central Bank must properly command the real conditions of monetary circulation and must guide to smoothly guarantee the circulation of goods using little funds.
Article 39 (Guidance on Payment and Use of Funds)
The Central Bank institution shall guide institutions, enterprises and organizations to pay labour remuneration funds including living expenses funds in conformity with the requirements of the principle of socialist distribution, and that they correctly use monetary funds.
Article 40 (Supervision and Control for Monetary Circulation Work)
The supervision and control of monetary circulation work shall be done by the Central Bank institution and the supervision and control institution concerned. The Central Bank institution and the supervision and control institution concerned must strictly supervise and control the progress of monetary circulation work.
Article 41 (Recovery and Damage Compensation for Sum of Money)
In cases where monetary funds have been misused, wasted or lost, the relevant sum of money shall be recovered or the damage shall be compensated.
Article 42 (Payment into State Coffers and Suspension of Bank Trade of Sums of Money)
The relevant sum of money shall be paid into State coffers or the bank trade shall be suspended in the following cases:
1. In cases where the retention limit has been exceeded and cash is being held;
2. In cases where trade in goods has been done in violation of the national economic plan and contracts;
3. In cases where construction has been expanded to beyond the plan;
4. In cases where funds have been unfairly received by falsely lodging construction performance.
Article 43 (Administrative or Criminal Liability)
Responsible workers of institutions, enterprises and organizations and individual citizens who have caused grave consequences to monetary circulation by violating this law shall have administrative or criminal liability imposed according to gravity.
Last updated 2 July 2020