The Newly Created Economic Development Zones in the Democratic People's Republic of Korea: In relation to the new economic policy under the Kim Jong Un government

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On March 31, 2013, at the March 2013 plenary meeting of the Central Committee of the Workers' Party of Korea (WPK), Kim Jong Un, the first secretary, stated in a report that economic development zones were to be set up and promoted having the local character of each province. The Presidium of the Supreme People's Assembly of the DPRK promulgated a decree on the DPRK Law on Economic Development Zones on May 29, 2013. It also issued a decree to set up thirteen economic development zones in various provinces on November 21, 2013. Six more economic development zones were added through a decree on July 22, 2014. This rapid expansion of economic development zones in the DPRK signifies that the country is seeking ways to attract foreign investment not only at the central government level but also at the local government (provincial) level. One of the key factors for the establishment of provincial economic development zones might be to set up 'incubators' for foreign investors. At least within the zones the laws on foreign investment are in force. For middle- to large-scale investment, however, many of these provincial economic development zones are too small, too little populated or too far from the major cities. Therefore establishment of these zones does not mean that the DPRK has a mature investment climate, but rather that they have just started to seek ways to be more attractive to foreign investors.

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