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abstract Recent Development in the Law of DPRK on the Rason Economic and Trade Zone Choi, Woo-Jin For the South Korean government a peaceful cooperation within Northeast Asia and extension of cooperation within Eurasia is a major assignment, in relation to which the Rason Trade and Economic Zone within the DPRK has regained public attention recently. With its geographical and topographical advantages, the Rason Economic and Trade Zone is an area appropriate for development. Since its designation as a special economic zone 20 years ago, however, the Rason Economic and Trade Zone has not shown much progress. Meanwhile, with the recent execution of the Cooperation Agreement between DPRK and China regarding developing and managing the Rason Economic and Trade Zone and Hwanggumphyong and Wihwa Islands Economic Zone came a turning point in the development of Rason Economic and Trade Zone. Since the execution of the Cooperation Agreement between DPRK and China in 2010, the Law of DPRK on the Rason Economic and Trade Zone was extensively amended in 2011 to implement the agreements between DPRK and China, and its subordinate regulations were introduced in an effort to materialize the amended Law of DPRK on the Rason Economic and Trade Zone. Regulations on Establishment and Operation of Management Organ cover the organization and business contents, etc. of the management committee which oversees the area managed jointly by DPRK and China within the Rason Economic and 180
Trade Zone. Development Regulations contain specific provisions with respect to the establishment of development projects, comprehensive development of land, permission for special business, and subcontract for production management, etc, within the Rason Economic and Trade Zone. Regulations on Establishment and Operation of Enterprises contain specific provisions with respect to the establishment operation and financial accounting, etc. of a company. Labor Regulations contain specific provisions on recruitment and termination of employees as well as wages and labor protection. The above regulations are regarded as both an advancement from previous foreign investment related regulations and a differentiation from regulations related to the Kaesong Industrial Zone. Compared with DPRK s previous foreign investment related laws, the Law of DPRK on the Rason Economic and Trade Zone and its subordinate regulations seem like a progress on the outset. Nevertheless, to attract foreign investments, it needs additional provisions on specific methods and procedures for foreign investment protection related matters as well as provisions that would establish dispute resolution mechanisms that are transparent and trustworthy. Also, DPRK s criminal law needs to be applied more flexibly within the Rason Economic and Trade Zone considering DPRK's particular political and legal environment. Further, the above regulations contain various provisions relating to regulatory sanctions, however they need to be accompanied by specific provisions on the investigation procedure and methods for challenging such regulatory sanctions. 181
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