1. Land lease and mortgage of land Univ.-Prof. Dr. Horst Hammen
in the DPRK
Univ.-Prof. Dr. Horst Hammen
Professor of Civil Law, Commercial
and Corporate Law, German and
European banking and capital markets law
Justus-Liebig-University, Giessen
Repetitorium Handelsrecht | Christian Horz

4. North Korea has a socialist planned economy.
I. Economic conditions
North Korea has a socialist planned economy.
The GDP is probably between 25 and 30 billion USD.
The infrastructure is acceptable in the Pyongyang-Nampho area.
Land lease and mortgage of land in the DPRK | Prof. Dr. Horst Hammen

5. Repetitorium Handelsrecht | Christian Horz

6. North Korea has a socialist planned economy.
I. Economic conditions
North Korea has a socialist planned economy.
The GDP is probably between 25 and 30 billion USD.
The infrastructure is acceptable in the Pyongyang-Nampho area.
The school education is relatively good. In foreign language high school, English is taught as a first foreign language and German as a second in the future.
Land lease and mortgage of land in the DPRK | Prof. Dr. Horst Hammen

7. II. Foreign Investment Policy of the DPRK
Promotion of foreign investments in the DPRK in the areas of industry, agriculture, construction, transport, communication, science, technology, tourism, commerce, financial services
Incentives: Reduction of income tax, profit repatriation guarantee
Settling in Special Developement Zones [SDZs]
Land lease and mortgage of land in the DPRK | Prof. Dr. Horst Hammen

9. II. Foreign Investment Policy of the DPRK
Promotion of foreign investments in the DPRK in the areas of industry, agriculture, construction, transport, communication, science, technology, tourism, commerce, financial services
Incentives: Reduction of income tax, profit repatriation guarantee
Settling in Special Developement Zones [SDZs]
Types of Business:
Contractual Joint Venture
Equity Joint Venture
Wholly Foreign-owned Enterprises (only in some SDZs)
Land lease and mortgage of land in the DPRK | Prof. Dr. Horst Hammen

10. III. Example: Jindo export processing zone
- Location: Ryongnam-ri, Wando District, Nampho
Land lease and mortgage of land in the DPRK | Prof. Dr. Horst Hammen

12. III. Example: Jindo export processing zone
- Location: Ryongnam-ri, Wando District, Nampho
Area of Development: 1.8 km²
Importing raw materials for the production of light industry and chemical goods and exporting them
- Joint development or solely a foreign enterprise
Land lease and mortgage of land in the DPRK | Prof. Dr. Horst Hammen

13. IV. Legal framework for foreign investments
Land lease and mortgage of land in the DPRK | Prof. Dr. Horst Hammen

14. IV. Legal framework for foreign investments
- Art. 37 Constitution of the DPRK
- Law on foreign investments
- Law on wholly foreign-owned enterprises
- Taxation Law for foreign-invested businesses
- Labour law for foreign-invested businesses
- Law on land lease
Land lease and mortgage of land in the DPRK | Prof. Dr. Horst Hammen

15. V. Law of the DPRK on land lease
- Art. 21, 22 Constitution of the DPRK
- Personal ownership of land is not allowed
- Land lease to foreign investors
- Contract of land lease
- Limit of 50 years
- Rental charge plus cost of land developement
- Annual fee for use of the land
- Transfer the right to use land
- Return of land use right
Land lease and mortgage of land in the DPRK | Prof. Dr. Horst Hammen

16. VI. Mortgage of the right to use land
- Art. 21 of the land lease law
- Applicable only to foreign private dealings
- Object of land mortgage is the right to use land
- Structures on the land shall also be mortgaged
Land lease and mortgage of land in the DPRK | Prof. Dr. Horst Hammen