Suggested citations
AGLC4 | 금강산관광특구법 2011 [Mt. Geumgang International Tourism Law of the Democratic People's Republic of Korea (2011)] [tr Daye Gang].
Bluebook | Geumgangsangwangwangteukgubeob 2011 [Mt. Geumgang International Tourism Law of the Democratic People's Republic of Korea (2011)] translated in Law and North Korea by Daye Gang, https://www.lawandnorthkorea.com/.
Adopted on May 31 (2011), as Directive No. 1673 of the Presidium of the Supreme People’s Assembly
CHAPTER I. BASICS OF MOUNT GEUMGANG TOURIST SPECIAL REGION LAW
Article 1 (Objectives of Mount Geumgang International Tourist Special Region Law)
The Mount Geumgang International Tourist Special Region Law of the Democratic People’s Republic of Korea shall correctly adopt systems and orders in the development, administration and operation of the Mount Geumgang International Tourist Special Region (from now international tourist special region) and serve to develop Mount Geumgang as a global tourist special region.
Article 2 (Status and location of international tourist special region)
International tourist special regions is a special tourism complex of the Democratic People’s Republic of Korea where tourism and related economic activities may be freely done. Included in the international tourist special region is Kangwon Province Kosong County Kosong Town, partial areas of Onjeong Town, Samilpo, the Haegeumgang area, the Naegeumgang area of Kumgang County, and partial areas of Tongchon County.
Article 3 (Principle of development of international tourist special regions)
Managing Mount Geumgang, one of the celebrated mountains of the world, into an international tourist special region is the policy of the State. The State shall manage Mount Geumgang into a comprehensive tourist site able to perform different tourist purposes and abilities, and must actively develop tourism.
Article 4 (Encouragement of investment and principle of guaranteeing conditions for economic activities)
Corporations, individuals, and economic organizations of other countries may invest in international tourist special regions. Southern and overseas Koreans and relevant institutions and organizations of the Republic, may also invest. The State shall actively encourage investment in international tourist special regions and must guarantee conditions for preferential economic activities to investors.
Article 5 (Principle of protecting property)
The State shall protect capital invested by investors, income obtained by law, and rights given to them by law.
Article 6 (Entity of charge of international tourist special region management)
The management of international tourist special regions shall be done by the Mount Geumgang international tourist special region management committee (from now the international tourist special region management committee) under the standardized guidance of the central Mount Geumgang international tourist special region guidance institution (from now the international tourist special region guidance institution).
Article 7 (International exchange and co-operation)
The State shall strengthen exchange and co-operation with international tourism organizations and the tourism organizations of other countries related to the work of the international tourist special regions.
Article 8 (Application of regulations)
Development and management of international tourist special regions, tourism and the tourism industry, and other economic activities shall be done according to this law and the regulations for implementation of this law.
CHAPTER II. MANAGEMENT OF INTERNATIONAL TOURIST SPECIAL REGIONS
Article 9 (Status of international tourist special region guidance institution)
International tourist special region guidance institutions are the central guidance institutions that guide the development, administration and operation of the international tourist special region in a standardized way.
Article 10 (Duties and authority of international tourist special region guidance institution)
The international tourist special region guidance institutions will do the following work:
1. Guidance over the work of the international tourist special region management committee
2. Drafting enforcement regulations of international tourist special region rules
3. Deliberation and approval of overarching international tourist special region development plan
4. Receipt and storage of copies of subject construct design documents
5. Tax administration of international tourist special regions
6. Other work authorized by the State
Article 11 (Status of international tourist special region management committee)
The international tourist special region management committee is the field implementation institution that manages the international tourist special region. The person responsible for the international tourist special region management committee is the Chair.
Article 12 (Duties and authority of international tourist special region management committee)
International tourist special region management committees shall do the following work.
1. Drafting and executing overarching international tourist special region development plan
2. Investigation, development, management of tourism resources
3. Publicity for tourism, recruitment of tourists, organization of tourism
4. Maintenance of order and personal and property protection in the international tourist special region
5. Lease of land and buildings
6. Investment attraction and approval to establish, registration, and permission to operate enterprise
7. Registration of land use rights, buildings, and wheeled vehicles
8. Guarantee of labour required for business activities
9. Construction licenses and pre-delivery inspections
10. Management of international tourist special region infrastructure facilities
11. Environmental protection and firefighting measures of the international tourist special region
12. Entry of people and transportation methods, and cooperation for entry and exit of supplies
13. Other work authorized by the international tourist special region guidance institution
Article 13 (Organization and operation of joint consultative body)
A thing like a joint consultative body composed of representatives of the international tourist special region management committee, investors, and enterprises may be set up in the international tourist special region. The joint consultative body shall consult on and conciliate important issues raised in the development, management, and operation of enterprises in the international tourist special region.
Article 14 (Entry management into international tourist special region)
A visa waiver system shall be executed in the international tourist special region. People and transportation methods entering into the international tourist special region from outside the territory of the Republic may enter without a visa through a designated passage with a passport or a certificate of entry as a substitute. The order of entering into an international tourist special region by going through a different area of the Republic, and the order of entering into a different area of the Republic from the international tourist special region shall be separately determined.
Article 15 (Inspections and quarantine)
People, animals and plants, and transportation methods entering the international tourist special region must receive traffic inspections, customs inspections, and hygiene and quarantine for animals and plants. Inspection and quarantine institutions must speedily do inspection and quarantine work using scientific techniques and methods so that there is no interference with the safety of and entry into the international tourist special region.
Article 16 (Environmental management)
In the international tourist special region, forests of scenic beauty may not be cut down; natural scenic beauty including scenic places and pine groves of coastlines, bathing resorts, rugged precipices with rocks of fantastic shape, elegant and peculiar geographical features of mountains, and islands of scenic beauty, natural monuments such as caves, waterfalls and ruins of ancient castles, and scenic spots and places of historic interest must not be damaged; buildings that cause inconvenience to environmental protection must not be constructed; and environmental protection standards such as emission standards for designated pollutants, noise and vibration standards must be assured.
Article 17 (Use of communication means)
Communication means such as post, telephone, fax, and internet can freely be used in the international tourist special region.
CHAPTER III. TOURISM AND TOURIST LABOUR
Article 18 (Parties to tourism)
Tourism in the international tourist special region shall be done by foreigners. Citizens of the Republic and southern and overseas Koreans may also do tourism.
Article 19 (Form and method of tourism)
Tourism shall be done in various forms and methods such as hiking, sightseeing, sea bathing, rest, experiences, entertainment, sport, or treatment. Tourists may freely do tourism inside the international tourist special region.
Article 20 (Tourism environment and guarantee of condition)
The international tourist special region management committee shall sufficiently ensure the tourism environment and conditions so that tourism can be conducted at a high level.
Article 21 (Labour for tourist)
Investors may manage different tourism labour facilities in the international tourist special region such as accommodation, restaurants, shops, casinos, golf, nightclubs, treatment, and entertainment, and may do various labour for tourists.
Article 22 (Conduct of international events)
Diverse events may be held in the international tourist special region such as international meetings, expositions, exhibitions, debates, art performances, and sports matches.
Article 23 (Guarantee of traffic)
The international tourist special region guidance institution and the international tourist special region management committee shall construct international airports, ports, tourist railways, and tourist roads to smoothly assure comfortable traffic for tourists.
CHAPTER IV. ESTABLISHMENT, REGISTRATION AND OPERATION OF ENTERPRISES
Article 24 (Establishing enterprises)
Investors may solely or jointly invest in the infrastructure construction sector, and tourist industries such as the travel industry, the accommodation industry, the restaurant industry, the casino industry, the golf course industry, and the entertainment and amenities industry for the development of the international tourist special region to establish different forms of enterprises.
Article 25 (Adherence to the overarching international tourist special region development plan)
The development of the international tourist special region shall be done according to the overarching development plan. Investors who seek to construct infrastructure or establish an enterprise in the international tourist special region must abide by the requirements of the overarching international tourist special region development plan.
Article 26 (Approval and registration for enterprise establishment)
Investors who seek to establish or operate an enterprise in the international tourist special region must receive enterprise establishment approval from the international tourist special region management committee. An investor who has received approval to establish an enterprise must do enterprise registration, tax registration, and customs registration within the period determined.
Article 27 (Approval of infrastructure construction)
The development of the international tourist special region and the approval of infrastructure construction such as airports, railways, roads, ports, and power plants for administration and operation shall be done by the international tourist special region guidance institution. Investment in the infrastructure construction sector such as in airports, railways, roads, ports, and power plants shall be especially encouraged.
Article 28 (Establishment of branch offices, agencies, local offices)
Things such as branch offices, agencies, and local offices may be set up in international tourist special regions. In these cases, the approval of the international tourist special region management committee must be received.
Article 29 (Opening an account)
Enterprises and individuals may open and use an account in a bank of the Republic or a bank of another country established in the international tourist special region.
Article 30 (Trade in marketable securities in foreign currency)
Enterprises and individuals may trade in marketable securities in foreign currency in designated places in the international tourist special region.
Article 31 (Purchase of insurance)
Enterprises and individuals may purchase insurance from insurance companies of the Republic or of other countries established in the international tourist special region.
Article 32 (Treatment of wastewater)
Enterprises shall have environmental protection facilities and hygiene facilities such as modern purification facilities, settling ponds, garbage treatment facilities, and must purify or treat wastewater so that there is no interference with tourism and environmental protection.
CHAPTER V. GUARANTEE OF CONDITIONS OF ECONOMIC ACTIVITIES
Article 33 (Recruitment)
Enterprises in the international tourist special region may recruit labourers of the Republic and labour from other countries or southern and overseas Koreans.
Article 34 (Currency in circulation)
Currency in circulation in the international tourist special region shall be convertible foreign currency. The type and base currency of convertible foreign currency shall be determined by agreement between the international tourist special region guidance institution and the relevant institution.
Article 35 (Entry and exit of foreign currency, transfer out of remittance and property)
Foreign currency may be freely entered and exited in the international tourist special region, and legally obtained profits, income, and monies may be remitted. When the business administration period ends, investors may take out of the territory of the Republic property brought into the international tourist special region from other countries, and property acquired by law in the international tourist special region.
Article 36 (Tax)
Enterprises and individuals must pay the tax determined under the relevant regulations in the international tourist special region. Enterprises in especially encouraged sectors such as the construction of airports, railways, roads, ports, and power plants shall have tax exemptions or reductions.
Article 37 (Entry and exit of supplies)
With the exception of designated prohibited goods, supplies related to business administration may freely be brought in or taken out of the international tourist special region.
Article 38 (Exemption from customs duty and subjects of levy)
A preferential customs duty system shall be executed in the international tourist special region. Supplies required for the development of the international tourist special region and for the business administration of enterprises, and office supplies and daily necessities at a determined scale required by investors, shall not have customs duty applied. In cases where supplies that are the subject of customs duty exemptions are sold outside of the international tourist special region, or supplies restricted by the State are brought into the international tourist special region, customs duty shall be levied.
Article 39 (Guarantee of conditions of entry of people and transportation methods, entry and exit of supplies)
The international tourist special region management committee and relevant authorities must smoothly assure the entry of people and transportations, and the entry and exit conditions of supplies, so that there is no interference with the development and business activities of the international tourist special region. In cases where they enter the international tourist special region through designated airports, an airport transit tax shall not be levied.
CHAPTER VI. SANCTIONS AND DISPUTE RESOLUTION
Article 40 (Sanctions)
A person who has caused interference with the administration and operation of the international tourist special region by violating this law or has damaged enterprises or individuals shall be caused to restore the damage, give damage compensation, or have a penalty levied, depending on the gravity. In cases where the safety of the Republic has been violated or societal order has been gravely violated, administrative or criminal responsibility shall be imposed according to the given law.
Article 41 (Dispute resolution)
Differences in opinion occurring related to the development, administration and operation of the international tourist special region or the business activities of enterprises shall be resolved by the method of consultation between the parties. In cases where they cannot be resolved using the method of consultation, they shall be resolved using the arbitration process agreed by the Parties or by a judicial process of the Republic.
Last updated 4 June 2021