라선경제무역지대 부동산제도 현황과 개선방안

North Korea, after entering into the co-operation agreement with People's Republic of China for co-management and co-development of Rason Economic Trade Zone (hereinafter "RETZ"), has actively engaged in development of the RETZ. In 2011, North Korea has made major amendments to the Law of the Democratic People's Republic of Korea on the Rason Economic and Trade Zone, and has enacted Regulations on Real Estate in the Rason Economic Trade Zone (hereinafter "Real Estate Regulations") in 2014. Real Estate Regulations, building upon the existing Law of the Democratic People's Republic of Korea on the Leasing of Land (hereinafter "Land Lease Law"), is a progress in several aspects in, inter alia, the following: it reinforces the land usage rights, provides for more in-depth regulations on real estate registration, allows for more freedom in real estate mortgage, and provides for implementation of mortgage through court. It appears that its experience in developing and operating Kaesong Industrial Complex has taught North Korea lessons in improvement of real estate systems, and co-development and cooperation with China has made North Korea more susceptible to influence of China's real estate system. On the other hand, Real Estate Regulations are still found to be lacking in terms of autonomy of transactions and protection of property rights. It is believed that North Korea is consulting with China for modification of its regulations, but the Real Estate Regulation's open-door policy for the RETZ has not reached the level of that of China. We believe the reasons for this are manifold. The fact that numerous North Korean companies and people are residing within the RETZ may be a factor in pulling back from a more drastic open-door policy. Also, RETZ is open to not only China but other nations, and North Korea is careful of the risk that may arise if RETZ, a strategic region for North Korea, becomes too dependent upon China for development and management. However, it would be very difficult for the current real estate regulatory regime to successfully culminate in diversification of investment in RETZ, contrary to North Korea's expectations. The Real Estate Regulations would need to be amended in several aspects, including relaxation of regulations for acquiring land usage rights, and reinforcement of autonomy of transactions. Also, arbitrary cancellation of usage rights and other draconian regulations would need to be amended, thereby providing better protection for land user's rights. RETZ is a doorway for China to East Sea, and as such a key strategic region for China. As Rason borders on Korea, China and Russia, it is expected that the demands for the development of the region will continue to grow. North Korea needs to improve its real estate regulations to meet these demands, and South Korea will need to take a leading role in the RETZ investment in cooperation with North Korea, thereby working together towards progress of Real Estate Regulations as well as North Korea's general real estate policy.