North Korean Legal Systems Regarding Foreign Investment

This article reviews up-to-date North Korean laws regarding foreign investment. The legislative intricacy of North Korea has been largely influenced by China. North Korea has enacted significant economic legislation to attract foreign investors, which mirrors similar Chinese laws. Since 2011, North Korea made significant amendments to laws on foreign investment and noticeable revisions on special economic zones. The Foreign Investment Act, the Wholly Foreign-Owned Enterprise Act and the Land Lease Act were revised in 2011. With respect to special economic zones, the Rason Economic and Trade Zone Act, as well as the Kumgang International Tourism Zone Act and the Hwanggumpyong-Wihwado Economic Zone Act, were revised in 2011. In 2014, the Equity Joint Venture Act, the Contractual Joint Venture Act and the Foreign Economic Arbitration Act was revised. In 2015, the Foreign-Invested Company and Foreign Person Tax Act was revised. The North Korean Socialist Constitution revised in 2019 emphasized the importance of credit in foreign trade and the principle of equality and reciprocity. It is essential and demanded for North Korea to join the New York Convention (Convention on the Recognition and Enforcement of Foreign Arbitral Awards) and the ICSID Convention (Convention on the settlement of investment disputes between States and nationals of other States) to protect foreign investors’ legal rights