Accession by the Democratic People’s Republic of Korea to the United Nations Convention on Contracts for the International Sale of Goods and its Legal implications

On 27 March 2019, the Democratic People’s Republic of Korea (DPRK) acceded to the United Nations Convention on Contracts for the International Sale of Goods (CISG). Prepared by the United Nations Commission on International Trade Law (UNCITRAL), the CISG facilitates international commerce by providing a default regime to govern international contracts involving sale of goods. As of April 2020, the CISG will act as the default regime governing international sale of goods contracts involving a party whose place of business is in the DPRK. This article discusses the background and legal implications of the DPRK’s accession. First, the DPRK’s accession is consistent with the CISG’s international origins. The CISG can be distinguished from prior attempts to draft a uniform law on contracts for the international sale of goods, because it secured broad-based participation including countries with different social, economic and legal systems. Second, the DPRK’s accession is significant, because the CISG is the first UNCITRAL instrument that the country has embraced. By completing the process, the DPRK has demonstrated that it is interested in and capable of participating in international private law. Third, the DPRK’s accession has consequences for the commercial legal regime of the country. In addition to making the CISG a relevant factor in resolving disputes connected to international sale of goods involving businesses in the DPRK, the country’s accession to the Convention raises questions about the country’s stance on other international commercial conventions and general contract law. Fourth, two potential areas in which the CISG can play a role in inter-Korean relations as the result of the DPRK’s accession are the resolution of North-South commercial disputes and the legal obligations of a unified Korea.