Suggested citations
AGLC4 | 북남경제협력법 2005 [North-South Economic Co-operation Law of the Democratic People's Republic of Korea (2005)] [tr Daye Gang].
Bluebook | Buknam Gyeongjaehyeoblyeokbeob 2005 [North-South Economic Co-operation 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 July 6, 2005, as Directive No. 1182 of the Presidium of the Supreme People’s Assembly
Article 1 (Objective of the North-South Economic Co-operation Law)
The North-South Economic Co-operation Law of the Democratic People’s Republic of Korea shall strictly adopt systems and orders in economic co-operation with the south and serve to develop the national economy.
Article 2 (Definition)
In north-south economic co-operation are included construction, tourism, enterprise operation, toll processing, technology exchange and exchange of banks, insurance, communications, transportations, work responsibilities, and goods conducted between the north and the south.
Article 3 (Subject of Application)
This law shall apply to institutions, enterprises and organizations that conduct economic co-operation with the south. This law shall also be applied to corporations and individuals of the south that conduct economic co-operation with the north.
Article 4 (Principles of North-South Economic Co-operation)
North-south economic co-operation shall be conducted by prioritising the interests of all the people, guaranteeing the balanced development of the national economy, and using the principles of mutual respect, trust, and exchange according to need.
Article 5 (Guidance Institution)
Standardized guidance for north-south economic co-operation shall be done by the central national economic co-operation guidance institution.
Article 6 (Duties of Central National Economic Co-operation Guidance Institution)
The duties of the central national economic co-operation guidance institution are the following:
1. Drafting the north-south economic co-operation schedule;
2. Receipt and approval of north-south economic co-operation applications;
3. Review of agreements and contracts related to north-south economic co-operation;
4. Guarantee of labour required for north-south economic co-operation;
5. Work with southern parties in northern areas;
6. Assistance with entry of southern parties to northern areas;
7. Approval of entry and exit of goods for north-south economic co-operation;
8. Guarantee of connection between parties of the north and south;
9. Issue of certificates of origin of products produced in northern areas;
10. Other work authorized by the government.
Article 7 (Foundation and Means of Co-operation Work)
North-south economic co-operation shall be founded on the agreement and relevant regulations between the countries concerned, and the contract between the parties of the north and south according to them, and shall be done by means of direct dealings.
Article 8 (Subjects of Prohibition on Co-operation)
North-south economic co-operation shall be prohibited for subjects that may hinder the safety of society, the sound development of the national economy, the health of residents and environmental protection, and the public morals of the people.
Article 9 (Place of Co-operation)
North-south economic co-operation shall be done in the northern or southern areas. By agreement, north-south economic co-operation may also be done in a third country.
Article 10 (Approval of North-South Economic Co-operation)
Approval for north-south economic co-operation shall be done by the central national economy economic co-operation guidance institution. North-south economic co-operation may not be done without approval.
Article 11 (Submission of Co-operation Application)
Northern or southern parties who wish to do north-south economic co-operation must submit the relevant application to the central national economy co-operation guidance institution. IN this case, a southern party must submit it together with a credit guarantee document issued by a public notary office. The form of the application shall be determined by the central national economy co-operation guidance institution.
Article 12 (Review and Treatment of Application)
A central national economy co-operation guidance institution shall review it within 20 days of the day the relevant application was received, and approve or reject it. In cases where the application is approved, a written acknowledgement shall be sent to the applicant, and in cases where it is rejected, a notice of rejection that states the reasons shall be sent.
Article 13 (Bearing Certificate of Entry)
In cases where parties to north-south economic co-operation enter southern or northern areas, he or she must hold a certificate according to agreement between the northern and southern countries concerned. Transportation methods must also have the designated certificate.
Article 14 (Inspection and Quarantine)
The parties to north-south economic co-operation or the transportation methods concerned must receive inspection and quarantine such as traffic inspection, customs inspection, and hygiene quarantine at the point of entry or exit or at a designated location. In cases where there is agreement between the northern and southern countries concerned, inspection or quarantine may not be done.
Article 15 (Stay and Residence of Southern Party)
A southern party who is doing north-south economic cooperation may stay in a northern area after receiving the approval of the entry and exit institution. Stay or residence in the industrial complex or tourism complex shall follow the relevant regulations.
Article 16 (Use and Protection of Property)
The northern and southern parties may use things such as the monetary property, property in goods, or intellectual property of economic co-operation. Investment assets shall be protected in accordance with the Agreement on North-South Investment Protection.
Article 17 (Recruitment)
A southern party managing a business in the northern area must recruit necessary labour with labour of the north. In cases where labour of the south or of a third country is sought to be recruited, the approval of the central national economy co-operation guidance institution must be received.
Article 18 (Approval of Entry and Exit)
Approval of entry and exit of goods for north-south economic co-operation shall be done by the central national economy co-operation guidance institution. The entry and exit of goods from industrial complexes and tourism complexes shall be done following a designated process.
Article 19 (Customs)
A customs duty shall not be levied on goods for north-south economic co-operation. However, in cases where goods brought into industrial complexes and tourism complexes from another country are sold as they are to another area in the north, a customs duty may be levied.
Article 20 (Payment of Tax, Use of Movable Assets and Real Estate, Purchase of Insurance)
A southern party’s payment of tax, use of movable assets and real estate, and purchase of insurance in the northern area shall follow the relevant regulations. In cases where there is an agreement of the northern and southern countries concerned, it shall be followed.
Article 21 (Settlement Bank and Payment Method)
Payment work related to north-south economic co-operation shall be done by a designated bank. The payment method shall follow the agreement of the northern and southern countries concerned.
Article 22 (Rescue for Accidents)
In cases where an accident has occurred in the northern area to a southern party or their transportation method, institutions, enterprises, organizations and citizens shall rescue in time and notify the institution concerned.
Article 23 (Confidentiality of Content of North-South Economic Co-operation)
The institutions, enterprises and organizations concerned must maintain the confidentiality of secrets related to north-south economic co-operation. Business content related to north-south economic co-operation may not be made public without the agreement of the other party.
Article 24 (Guarantee of Business Conditions)
The institutions concerned must staunchly guarantee the business conditions of the central national economy co-operation guidance institution related to north-south economic co-operation.
Article 25 (Supervision and Control)
The supervision and control of north-south economic co-operation shall be done by the central national economy co-operation guidance institution and the supervision and control institution concerned. The central national economy co-operation guidance institution and the supervision and control institution concerned shall supervise and control institutions, enterprises, organizations and citizens correctly so that they correctly abide by the order of north-south economic co-operation.
Article 26 (Sanctions)
In cases where this law has been violated, depending on the gravity. Administrative liability such as business shutdown or fines shall be imposed. In grave cases, criminal liability may be imposed.
Article 27 (Dispute Resolution)
Differences in opinion related to north-south economic co-operation work shall be resolved by means of agreement. In cases where they cannot be resolved by means of agreement, they may also be resolved by a commercial dispute resolution process agreed between north and south.
Last updated 4 June 2021