North Designates Shinuijoo Special Economic Zone Empowered with Independent Three Branches Government

It is reported that North Korea has recently designated Shinuijoo a special economic zone and enacted a law named "Act for Special District of Shinuijoo (ASDS)." Under the new law, the new district will be empowered to have its independent three branches government: the executive, the judiciary and the legislative. In addition, the district will be empowered to develop land projects with other foreign entities.

In fact, North statutorily has guaranteed autonomy to Shinuijoo Special District in all respects except in areas of foreign affairs and national security, and thus has allowed the district to independently plan and develop projects with other countries. Therefore, Shinuijoo Special District will serve as a testing ground for the future of capitalism in North.

It is reported on September 22, 2002, that the North Korean government, starting this year, has begun to construct a 3m high fence around the special district. Last year, the North Korean government moved residents living on the southern part of Shinuijoo into the special zone.

Experts analyzed, "North seems to be pursuing a model, which is somewhere between China and Hong Kong."

According to the Sep. 21 report by the Central Broadcasting of North Korea, the ASDS, which has 6 chapters and 101 sections, is not allowed to be amended for the next 50 years to come. Moreover, under the ASDS, the central government of North Korea and its agencies are not allowed to interfere in the administration and any business of the special district unless the matter is related to foreign affairs.

The ASDS is especially intended to help Shinuijoo Special District to secure itself as one of the major international city of finance, trade, commerce, engineering, cutting-edge technology and entertainment business. It also expressly guarantees, by December 31 of 2052, to Shinuijoo Special District the privilege of independently developing and managing its land, and thus provide the environment necessary for investment and business activities.

In addition, the ASDS provides, "Within the special zone, foreigners, even without permanent residency, are bestowed rights and duties enjoyed by North Korean citizens."

The government of Shinuijoo Special Zone will develop its own project with foreign governmental entities within the power relegated to it by the central government, and can issue its own passports.

Furthermore, the legislative of the district will be set up, and its members can be selected from North Korean residents as well as foreigners with permanent residency.

The Central Broadcasting also reported that the administrative head of the district "Minister" is empowered to pronounce decisions made by the legislative and issue special orders; and to appoint and fire members of the district`s executive body and prosecutors.

All of these provisions indicate that the ASDS is prepared, keeping North Korean government`s failure with Najin and Sunbong special zones in mind, since all of them strongly provide the autonomy to Shinuijoo District.

It was also reported that the ASDS also allows the government of the special district can use its own emblem and flag in addition to the national flag of North Korea.

Young-Sik Kim Dong-Ki Sung spear@donga.com esprit@donga.com