Kaesong regulatory environment set

From Chongryun:

On December 11, 2004, the DPRK finalized management, entry and residency regulations, and customs regulations for the Kaesong Industrial Zone.

Set up under a de facto constitution, the “Kaesong Industrial Zone Management Institution” consist of 21 articles.

The Management Institution is a corporation in charge of administrating the region.  People who have experience in these kinds of managemnt fields can work for the Institution, but employees of firm that operate in the zone are no allowed to serve.

The Institution will make annual plans for the development of the zone on its own and carry out the plans and will discuss with the central leading organ of the zone in case an important problem arises in the course of its work.

Entry and residence articles: 30

The regulations apply to South Koreans, overseas Koreans and foreigners who come to the zone from the South or do so by transportation means using the same route. According to the regulations, persons can enter the zone by showing their passports or certificates issued by the management institution.

They can stay in the zone for a long or short term. A short term stay is within 90 days and a long term stay is over 91 days. The extension of their stay is permitted if they applied for it at the immigration office of the industrial zone. Excluded from extended stay are those who are expected to leave the zone within 7 days from their arrival, as well as members of international organizations and foreign missions in South Korea, tourists and those who are not required to register themselves for their stay.

The regulations also clarify the issue of certificates related to entry into the zone, procedures for issuing the certificates of stay and residence registration cards and the extension of their term of validity, orders of deportation from zone, etc.


According to the regulations, goods, postal matter and persons engaged in transport service who stay in the zone for a certain length of time, can pass through the customs clearance house.

The goods that are sent by organizations and enterprises in the DPRK to the zone are exempt from customs procedures. But customs should be imposed on the goods from other countries which are to be sold in the DPRK as they are, without being processed.

Also clarified in the regulations are the rules of customs registration, the rules of customs exemption and payment, presentation of applications for permits to carry goods into and out from the zone, declaration of postal matter and personal belongings, customs inspection and supervisory institutions, the inspection method of goods to be carried into or carried out from the zone, standard customs rates and calculation methods, etc.

The goods prohibited to be carried into the zone include weapons, bullets, explosives and other materials for military use, narcotics, radioactive material, toxic chemical agents, printed matter that may adversely affect public order and good manners and customs of the nation and listed goods coming from contagious disease-afflicted areas.

Those goods banned to be taken out from the zone include weapons, bullets, explosives, materials for military use, lethal weapons, wireless apparatuses and their accessories, poisonous substances, powerful medicines, narcotics, radioactive material, toxic chemical agents, historical relics, secret documents, printed matter (copies included) and their manuscripts, films, photos, cassettes and video tapes, records, compact disks and other goods which are banned from being carried out under related agreement.


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