Suggested citations
AGLC4 | 재산관리법 1998 [Property Management Law of the Democratic People's Republic of Korea (1998)] [tr Daye Gang].
Bluebook | Jaesangwanlibeob 1998 [Property Management Law of the Democratic People's Republic of Korea (1998)] translated in Law and North Korea by Daye Gang, https://www.lawandnorthkorea.com/.
Adopted on March 21, 1996, as Decision No. 70 of the Standing Committee of the Supreme People’s Assembly
Amended on December 10, 1998, as Directive No. 251 of the Presidium of the Supreme People’s Assembly
CHAPTER I. BASICS OF SOCIALIST PROPERTY MANAGEMENT LAW
Article 1
The socialist property management law of the Democratic People’s Republic of Korea shall adopt systems and order in property management to consolidate and develop socialist property, and shall serve to foster economic construction to raise the material and cultural standards of the people.
Article 2
Socialist property is noble gains accomplished through the arduous struggle and creative labour of our people and the material foundation for the development of wealth and power of the country. The State shall firmly consolidate the established socialist property management system, and shall attain collectivist requirements in property management.
Article 3
Socialist property management is the management of property of the State and property of social, cooperative organizations. Property management for property of the State shall be done by institutions, enterprises and organizations authorized to do the management by the State, and property management for property of social, cooperative organizations shall be done by the given social, cooperative organizations.
Article 4
Guiding socialist property management work so that it is goal-oriented is a resolute guarantee of socialist economic development. The State shall raise the creative power of institutions, enterprises and organizations on the foundation of strengthening standardized guidance on property management, and must do property management in a planned way.
Article 5
The owners of socialist property management are the people and the public. The State shall accurately embody the requirements and interests of the people and public property management, and shall manage property based on their conscious fervour and creative wisdom.
Article 6
Doing socialist property management scientifically and rationally is an important requirement of property management. The State shall embody the Taean Work System to correctly adopt a property management system and shall ceaselessly improve property management methods.
Article 7
Socialist property management shall be based on calculations and statistics. The State shall assure the objectivity and timeliness of calculations and statistics in property management to correctly discover and command its true state, and must do property management with predictive utility.
Article 8
The State shall systematically increase investment to improve socialist property management to raise property management work to a high level and must modernize means of property management.
Article 9
The State shall strengthen scientific research in the socialist property management sector, and shall actively accept advanced scientific and technical results in property management.
Article 10
Valuing and loving socialist property is important work for the prosperity of the country and future generations of people and the sacred duty of citizens. The State shall strengthen socialist patriotic education within the people so that they consider precious and increase the property of the country, and must preserve and manage it.
Article 11
The Socialist Property Management Law of the Democratic People’s Republic of Korea shall regulate the principles, processes, and methods of property management. Management of property that cannot be registered, evaluated, or inspected shall follow given regulations.
CHAPTER II. CLASSIFICATION OF SOCIALIST PROPERTY
Article 12
Classifying socialist property is a prerequisite condition for doing property management well. The State shall correctly classify property so that it can correctly limit and divide the management of property.
Article 13
Socialist property shall be divided into property of the State and property of social, cooperative organizations according to the form of ownership. Property of the State includes things like nationalized property, property arising through State investment, property arising through an enterprise’s own investment, or property for which an organization or citizen has handed over ownership to an institution or enterprise. Property of social, cooperative organizations include property for which an institution, enterprise, or citizen has handed over ownership to an organization, and property arising through an organization’s investment.
Article 14
Socialist property shall be divided into natural resources capable of generating wealth, fixed assets, and liquid property according to the nature of the subject. Natural resources capable of generating wealth includes things such as land, forest, underground resources, and marine resources; fixed assets includes things such as buildings including homes, structures, power transmission equipment, facilities, transportation methods, tool and equipment, breeding stock, work stock, equipment, design blueprints, books, literary works, ornamental plants and animals, natural monuments, and cultural artefacts; and liquid property includes things such as raw material, resources, unfinished articles, semi-finished products, finished products, merchandise, precious minerals, and currency.
Article 15
Socialist property may be divided into things such as real estate or movable assets depending on the case.
CHAPTER III. REGISTRATION, EVALUATION, INSPECTION OF SOCIALIST PROPERTY
Article 16
Registration, evaluation, and inspection of socialist property is work to command and record property without exception, regulate their value, and investigate the state of property. Institutions, enterprises and organizations must correctly register, evaluate, and inspect all property in time.
Article 17
Registration of socialist property shall be own registration and State registration. Own registration shall be done by institutions, enterprises and organizations and State registration shall be done by the given property supervision institution.
Article 18
In cases where socialist property is created or evaluated, or its value has changed or re-evaluated, institutions, enterprises and organizations must do their own registration, and must do State registration according to what has been decided. Registration shall be done in goods or in monetary value. Property that cannot be registered in monetary value shall only be registered in goods.
Article 19
Evaluation of socialist property shall be done according to the value of the property. Property evaluation shall be done by the authorities concerned, including the price determining institution and the central banking institution.
Article 20
Re-evaluation of socialist property shall be done in cases where the wholesale price of the property has changed or where another reason has arisen. Property re-evaluation shall be done by the financial banking institutions and the authorities concerned.
Article 21
Institutions, enterprises and organizations must do inspections for socialist property within a designated period. Property inspections shall be done by the method of registering the amount of goods and true state of the given natural resources capable of generating wealth, fixed assets, or liquid property, and comparing and confirming them with the given technical documents.
Article 22
Property inspection of socialist property shall be divided into regular inspections, temporary inspections, and overall inspections. Regular inspections shall be done by periods of month, quarter, and year, temporary inspections shall be done in cases where the responsible worker or property supervisor changes or control over the property is transferred. Overall inspections shall be done in cases where the state of the property of the country is universally investigated and commanded.
Article 23
Institutions, enterprises and organizations shall organize a socialist property inspection committee and must do inspections as designated. Property inspections shall have a property supervision institution worker attend according to the subject. Institutions, enterprises and organizations must report the state of property inspection to the higher level institutions and authorities concerned in time.
CHAPTER IV. PROTECTION OF SOCIALIST PROPERTY
Article 24
Protecting socialist property is an important requirement to prevent damage to property, preserve it well, and increase it. Institutions, enterprises and organizations must do property protection work in conformity with the nature of the property in a planned way so that it has good prospects.
Article 25
Institutions, enterprises and organizations must have material and technical means such as buildings, structures, facilities, resources, and equipment to prevent damage to socialist property. In these cases, the requirements of the technical indicators predicted in the given plan or design must be abided by.
Article 26
Institutions, enterprises and organizations must make a historical record about given fixed assets, must normally discover and command their technical and engineering requirements and state of technical management, and must abide by the requirements of the standard operation manual in the protection and management of fixed assets.
Article 27
Institutions, enterprises and organizations must apply the protective methods applicable to the physical, chemical, and biological specifics of socialist property to prevent damage such as loss, fire, damage, oxidation, pollution, decomposition or spoiling, damages by blight and harmful insects, and must preserve its volume and quality.
Article 28
Institutions, enterprises and organizations shall store socialist property in places that have the technical conditions and safety conditions, and must bring it in or let it out as designated. In cases where the property of another institution, enterprise, or organization is being held for reasons such as transportation, repair, or borrowing, it shall be managed together with one’s own property.
Article 29
Institutions, enterprises and organizations must not let out or throw away harmful substances that can cause damage to socialist property. Harmful substances can be purified or removed and must be thrown away or buried in designated places.
Article 30
In cases where a thing that could cause damage to socialist property such as unfavorable weather or earthquakes is predicted, weather and floodgate institutions and given scientific research institutions must notify the given property management institution. Institutions who have received a notification must take measures to protect property in time.
Article 31
Institutions, enterprises and organizations must adopt a planned preventive maintenance system for fixed assets to keep to a designated form of maintenance and maintenance cycle, and must assure a maintenance time limit and quality.
Article 32
The structure or form of fixed assets may not be changed at will. In cases where institutions, enterprises and organizations seek to change the structure or form of fixed assets, it must agree with the property supervision institution and the approval of a higher level institution or the Cabinet must be received, depending on the subject.
Article 33
Institutions, enterprises and organizations must normally operate an equipment inspection and review day to protect socialist property. The work of deciding an equipment inspection and review day shall be done by the Cabinet.
Article 34
Institutions, enterprises and organizations shall clearly decide the limits and division of protection of socialist property, and must choose a property manager. Property managers must raise their responsibility in the property management they have been allocated.
Article 35
Property protection areas shall be determined according to subject, to protect socialist property well. The work of deciding property protection areas shall be done by the authorities concerned or by Cabinet.
Article 36
In cases where an institution, enterprise, organization or citizen has discovered socialist property that has the value of a national treasure or economic value, it must notify the authorities concerned. An institution that has received a notification must investigate and confirm the property in time and must take protective measures.
Article 37
The State shall determine a monthly socialist property preservation period to responsibly manage socialist property. The work of determining a monthly socialist property preservation period shall be done by the Cabinet. Institutions, enterprises and organizations must intensively open up organization and mobilization work to frugally manage property during the monthly socialist property preservation period, and citizens must participate in property preservation work as if they are the owners.
CHAPTER V. USE OF SOCIALIST PROPERTY
Article 38
The use of socialist property is the work of using and operating property according to its uses. Institutions, enterprises and organizations must use property rationally and effectively in conformity with the uses of the property.
Article 39
Institutions, enterprises and organizations must do technical and economic calculations property, and accept advanced techniques and methods to raise to the utmost the rate of usage of socialist property.
Article 40
State planning institutions and authorities concerned must scientifically decide the technical and economic standards related to socialist property use and must ceaselessly update them in conformity with the requirements of actual development. Institutions, enterprises and organizations must correctly abide by the designated technical and economic standards.
Article 41
Institutions, enterprises and organizations must remodel fixed assets into more effective things in conformity with the requirements of the modernization and scientization of the national economy, and must update them in a planned way. The work of determining the service life of fixed assets shall be done by the authorities concerned or the Cabinet.
Article 42
Newly created or maintained fixed assets may only be used after receiving an inspection. The inspection of newly created or maintained fixed assets shall be done by the given property supervision institution according to the subject.
Article 43
The use of fixed assets may not be changed at will. In cases where institutions, enterprises and organizations seek to change the use of fixed assets, they must agree with the given property supervision institution according to the subject and the approval of a higher level institution must be received.
Article 44
Institutions, enterprises and organizations must do calculations correctly in socialist property management and must correctly apply economic concepts such as price, cost, labour remuneration, and cancellation charges to stimulate and drive property management.
Article 45
The State shall execute a credit guarantee system for property to use socialist property which quality has been guaranteed. The work of determining subjects and institutions for credibility warranty shall be done by the given central property management guidance institution or the Cabinet.
Article 46
Institutions, enterprises and organizations must determine the scope of use of the socialist property under their management, and must divide and place it so it can be used effectively. In required cases, the placement of property may be adjusted. The work of adjusting the placement of property shall be done by the given property management guidance institution, the property supervision institution, or the Cabinet according to the subject.
Article 47
Institutions, enterprises and organizations must mobilize and use socialist property under their management to the maximum. Property may not be left idle or unused without approval.
Article 48
Socialist property may be lent to other institutions, enterprises and organizations with the approval of a higher level institution. In these cases, a contract shall be concluded with the borrowing unit, and a lease fee shall be received according to the subject.
Article 49
Institutions, enterprises and organizations shall correctly give to lower units, such as workplaces and labour units, and employees conservation assignments and cost reduction plans related to socialist property use, and must command and evaluate the state of their performance in time.
Article 50
Institutions, enterprises and organizations must recover and use things like by-products, discarded waste, and old materials as much as possible.
Article 51
The State shall maintain the ability of fixed assets, shall arrange the funds required to update fixed assets in a planned way, and shall apply a depreciation system for productive fixed assets to stimulate the rational use of productive fixed assets.
CHAPTER VI. TREATMENT OF SOCIALIST PROPERTY
Article 52
The treatment of socialist property is work to sell, transfer control, or discard property. Institutions, enterprises and organizations must handle property according to State planning, contracts, the Decision or direction of a given State organ, or a Decision of an organization.
Article 53
Institutions, enterprises and organizations must supply, sell, or purchase produced goods through resources trading companies, sales trading companies, or commerce and food policy institutions or enterprises. However, some produced goods may be treated according to what has been separately determined.
Article 54
Institutions, enterprises and organizations may transfer control of leftover or idle fixed assets to other institutions, enterprises and organizations according to their ability. In these cases, they must agree with the given property supervision institution according to the size of the subject and its value, and the approval of a higher level institution or the Cabinet must be received. The property management guidance institution must regularly command property that is able to have its control transferred to take measures to transfer control over to a given unit.
Article 55
In cases where fixed assets are transferred between institutions and enterprises, a price shall not be received as a general rule. However, in cases where it has been separately decided, a price may be received. In cases where an institution or enterprise hands over fixed assets to an organization or an organization hands it over to an institution, enterprise, or another organization, a price shall be received.
Article 56
Institutions, enterprises and organizations may send socialist property out to other countries. In these cases, it shall be agreed with the given property supervision institution according to the size of the subject and its value, and the approval of a higher level institution or Cabinet must be received.
Article 57
Property without an owner and confiscated property shall be handed over to the authorities concerned to be handled. The authorities concerned shall handle property as designated, and in cases where a price has been received, must pay it into the State budget.
Article 58
In cases where a fixed asset has lost its use, institutions, enterprises and organizations must discard the property and delete it from registration. In these cases, it shall be agreed with the given property supervision institution according to the size of the subject and its value, and the approval of a higher level institution or Cabinet must be received.
CHAPTER VII. GUIDANCE AND CONTROL FOR SOCIALIST PROPERTY MANAGEMENT WORK
Article 59
Strengthening guidance and control for socialist property management work is an important guarantee to raise the responsibility and role of property management and prevent damage to property to normalize property management at a high level. The State shall strengthen guidance and control for property management work.
Article 60
Standardized guidance for socialist property management work shall be done by the Cabinet. The Cabinet must correctly adopt a guidance system for property management to normally command and guide property management work.
Article 61
The property management guidance institution must guide institutions, enterprises and organizations to frugally manage socialist property.
Article 62
State planning institutions, labour administration institutions, resources supply institutions, and financial banking institutions must assure in time the labour, facilities, resources, and funds required for socialist property management.
Article 63
Supervision and control for socialist property management work shall be done by the property management guidance institution and the given supervision and control institution. Property management guidance institutions and given supervision and control institutions must strengthen supervision and control work to adopt property management order.
Article 64
In cases where socialist property has been destroyed, damaged, wasted, or lost, it shall be restored or the given damage must be compensated.
Article 65
Responsible workers of institutions, enterprises and organizations and individual citizens who have caused grave consequences by violating socialist property management order shall have administrative or criminal responsibility imposed depending on the gravity.
Last updated 28 March 2021