The respected Comrade
"A favorable climate and good conditions for investment should be created in our economic development zones in order to revitalize their operation, and wide-scale tourism should be encouraged."
It is the consistent external economic policy of the Party and the government of the Democratic People's Republic of Korea to expand and develop economic cooperation and exchange with other countries on the principle of complete equality and mutual benefits.
Today, the DPR Korea, which has favorable natural and geographical conditions and where working people possess high cultural attainments, is enjoying the most stable political environment and displaying its might as a military power under the outstanding and sophisticated leadership of the respected Comrade
The DPRK Government has provided legal environment favorable for foreign investors to set up various types of businesses such as cooperative or joint-venture enterprises and conduct economic activities, including production, sale, transport, etc and authorized the power to control economic and trade activities in Economic Development Zones (EDZs) to the managing organs of EDZs.
The rationale behind the authorization of such power to managing organs is to ensure that the management of EDZs is carried out in accordance with their mission and the objective of their establishment.
An EDZ is a sort of Special Economic Zone (SEZ), where economic and trade activities are carried out in accordance with orders and rules fixed differently from other domestic areas. Therefore, it is very important in successfully developing EDZs to establish managing organs to be in charge of economic and trade activities in these areas.
It is the managing organ concerned that is in charge of the managing affairs in the given zones.
Therefore, the government of the Republic has laid a solid legal foundation for the managing organ to fulfil its missions and duties in management, stipulating the laws governing the status and duties of it in the EDZs.
The managing organ has the status as a local executive organ in charge of the work in the zones. The managing organ is directly responsible for the work in the EDZs on the spot under the guidance and with the assistance of departments or organs concerned from the central organs guiding the SEZs and the people's committee of the given province (municipality directly under central authority). Here an "organ concerned" refers to committees, ministries, central organs or organs performing the same functions as these organs in case of an EDZ at the state level. Organs concerned organize managing organs to suit to the objective of the establishment of EDZs and guides and assists the managing organs to successfully perform their functions.
The managing organ has jurisdiction over the given area.
The given area is one under the authority of the managing organ in dealing with the affairs arising in the building and management of EDZs.
The given area is one the jurisdiction over which is devolved to the managing organ by the people's committee of the given province (municipality directly under central authority) or the organs concerned according to the general development programme of the economic development zones concerned. "The organ concerned" mentioned above is one that transfers the power to the managing organ. For example, in case that the given area is farm land, it refers to organs of agricultural guidance and cooperative farms or enterprises, organs, and organisations using the given land. In case of water area, it refers to organs of state land administration or organs of agricultural guidance. The managing organ is supposed to be given the power over the given area by such organs and to exercise its authority over the given area.
A managing organ is autonomous in managing the given area. It means that it is independent in managing the building, administration and economic trade activities in EDZs. As the managing organ is autonomous in managing the given economic development zones, other organs are not allowed to interfere into its work in the zones except the organs concerned. In order to participate in its work, the organs at the central level have to be allowed by the central organs of the SEZs, and other organs by the departments concerned from the people's committee of the given province.
The managing organ is qualified as a corporation. It means that it has the right to draw a contract in its name and can be the party to the relations of duty and obligation in the transactions concerned. For example, under the authority given by the organ of state land administration of the given province (municipality directly under central authority), the managing organ is allowed to sign a contract with an investor from abroad aimed at transferring the right to utilize a certain area of land.
In conformity with the conditions in the given area, a managing organ can be set up in the names such as the managing committee or managing office. The organ consists of a chairman (a director), vice-chairman (vice-director), secretary and other necessary members. Citizens of the DPRK or foreigners who have rich work experience and expertise in the relevant field are eligible for membership of a managing organ.
The above-seen contents are explicitly regulated by the Law of the Democratic People's Republic of Korea on Economic Development Zone and the Regulation of Administration of a Managing Organ.
The legal definition of the status of a managing organ of an EDZ in accordance with the objective of the establishment of EDZs in DPR Korea and the world trend of EDZ management enabled managing organs to have sure legal guarantee to successfully manage and operate EDZs.
