Choson Central News Agency (KCNA) announced on the 30th that North Korean authorities had enacted revisions regarding its Law on Registration of Foreign-invested Enterprise.
KCNA states “Chapter 8 Article 51 of the Law on Registration of Foreign-invested Enterprises protects the signing of labor contracts, labor and repose, labor protection, as well as the right of social insurance and social security.”
In addition, Chapter 10 Article 72 of the Foreign Investment Law and Chapter 4 Article 59 calls for the revision of foreign investment enterprise accounting, KCNA said. Specific changes, however, were not revealed.
North Korea’s Law on Registration of Foreign-invested Enterprise was established in May 1992 and has faced revision in 1999 and 2004. Laws applicable to foreign investment enterprises under the Law on Registration of Foreign-invested Enterprise are subject to change and amendment is scheduled in eight years.
This revision seems to be based on North Korea’s intent to secure foreign currency and foreign investment.
Such measures are expected to attract foreign exchange through assurance. Recently enacted laws have been introduced in the development of special economic zones. The Academy of Social Sciences at the North Korea National Research Institute stressed that an occasional audit of foreign companies may be reasonable.
In response, a representative of the Samsung Economic Research Institute stated in a phone call with Daily NK “At this time, Chinese companies seem to be primarily subject to revisions of the law.” He continued, “The intent seems to be to vanguard special economic zones.”
Following “sanctions on North Korea due to its nuclear policy and pattern of international relations, attraction of foreign investment may not be solved through a framework of law. Much remains unresolved.”