The respected Comrade
"A favourable climate and good conditions for investment should be created in our economic development zones in order to revitalize their operation, and wide-scale tourism should be encouraged."
The Democratic People's Republic of Korea set up economic development zones in all provinces with a view to further expanding the external economic transactions and accelerating the overall economic development of the country and the growth of the local economy.
The provincial economic development zones were promulgated five times until Juche104(2015).
According to the decree of the Standing Committee of the Supreme People's Assembly on November 21, Juche102(2013), 14 economic development zones were established for the first time, and on June 11, Juche103(2014), one economic development zone (Wonsan-Mt. Kumgang International Tourism Zone) was established, on July 23, Juche 103(2014), six economic development zones, and on April 22 and October 8, Juche 104(2015), respectively, one economic development zone (Mubong International Tourism Special Zone, Kyongwon economic development zone of North Hamgyong Province).
The provincial economic development zones of the Democratic People's Republic of Korea are divided into various kinds in terms of function and sector management.
First of all, in terms of function, the provincial economic development zones are divided into comprehensive economic development zone and specialized economic development zone.
The comprehensive economic development zone performs several functions simultaneously and the specialized economic development zone performs one or two functions. They are both special economic zones.
The meaning of a special economic zone is that it is a zone where the economic activities such as investment, production, trade and services are provided with preferential benefits according to the laws and regulations specified by the state. In a word, it is a special economic zone where the laws and regulations specified by the state are applied in the DPRK and preferential benefits are provided in economic activities.
Economic development zones are classified in terms of function into specialized economic development zones and comprehensive economic development zones, whereas most of them are specialized economic development zones.
In addition, the economic development zones are divided into economic and sci-tech zones such as industrial development zone, agricultural development zone, tourist development zone, export processing zone and advanced technology development zone.
An industrial development zone is an economic development zone in which factories and production service facilities producing various kinds of products in heavy and light industries are concentrated and industrial production is conducted in a comprehensive way. The industrial development zones established in the provinces are the Wiwon Industrial Development Zone in Jagang Province, the Hyondong Industrial Development Zone in Kangwon Province, the Hungnam Industrial Development Zone in South Hamgyong Province and the Chongnam Industrial Development Zone in South Phyongan Province.
An agricultural development zone is an economic development zone which is equipped with high-productivity cyclic production system of modern agriculture, stock raising and fishery including seed selection, crop cultivation, livestock breeding and fish farming together with agricultural scientific research base and food processing and packaging bases.
And the zone serves as a model base in the fields of research and introduction of biotechnology, protection of natural ecological environment, land and water conservation and production of high-yielding seeds, all of which are important in modern agricultural development.
The provincial agricultural development zones established are Pukchong agricultural development zones in South Hamgyong Province, Orang agricultural development zone in North Hamgyong Province and Sukchon agricultural development zone in South Phyongan Province.
A tourist development zone is an economic development zone where they build special tourist souvenir production base and tourist service facilities and provide tourist services to attract a large number of tourists. And it performs the function of widely publicizing the country's level of development and civilization, scenic spots and the superior national culture.
The tourist development zones established in provinces include Wonsan-Mt Kumgang International Tourist Zone, Sinphyong Tourist Development Zone in North Hwanghae Province, Onsong Island Tourist Development Zone in North Hamgyong Province, Chongsu Tourist Development Zone in North Phyongan Province and Mubong International Tourist Special Zone.
An export-processing zone is a combination of free-trade district and processing-manufacturing district, an economic development zone which deals mainly with the production of exports.
Export-processing zones established in provinces are Songrim Export Processing Zone in North Hwanghae Province, Waudo Export Processing Zone in Nampho City, and Jindo Export Processing Zone.
An advanced technology development zone is an economic development zone where scientific research, education and industrialization are combined on a high level and scientific and technological exchange is promoted, and it plays the role of promoting the development of science and technology, the introduction of advanced technology, the development of technical trade and the training of economic officials befitting to the era of knowledge-based economy.
All the activities in the advanced technology development zone, where research, development and production consist a solid organism and are closely related to each other, are characterized by the activities of creating intellectual productions of high-level, different from activities in other types of economic development zones, which are carried out according to land, labor, and other common preferential measures. And new and innovative work to make advance in the high-tech field constitutes as the main stream. Typical example of an advanced technology development zone is the Unjong advanced technology development zone.
An economic development zone can be developed by combining several industrial sectors, called the complex economic development zone. The complex economic development zones established in provinces are Amnokgang economic development zone in North Phyongan Province, Manpho economic development zone in Jagang Province, Chongjin economic development zone in North Hamgyong Province, Hyesan economic development zone in Ryanggang Province, Kangryong international green demonstration area and Sinuiju international economic zone.
Also, from the viewpoint of managerial affiliation, economic development zones can be divided into local economic development zones and central economic development zones.
An economic development zone supervised by a relevant central agency is called a central economic development zone and an economic development zone controlled by a provincial (municipal) People's Committee is called a local economic development zone.
The provincial economic development zones would develop in an export-oriented way, unlike other regions in the country.
In order to increase exports in economic development zones, the state particularly encourages the production of highly competitive products in the international market, and the preferential tariff system and tax reduction policy are also applied broadly to investment enterprises.
The preferential export promotion policy and financial management rule in the economic development zones will allow the economy of the region to develop into an export-oriented economic zone with the foreign market as the main focus rather than domestic demand.