1. Reasons for Amendment

With the enactment of the Act on the Designation and Operation of the Special Peace Economy Zone (Act No. 19432; promulgated on June 13, 2023; to be enforced on December 14, 2023), this Enforcement Decree aims to define matters delegated from the Act and other matters required for its enforcement.

2. Major Provisions 

A. Scope of “the region adjacent to North Korea” (Article 2)

 - Specify “the region adjacent to North Korea” for which the Special Peace Economy Zone can be designated and operated

B. Establish a plan to designate and develop the Special Peace Economy Zone (Article 3 to Article 11)

 - Specify comments to be suggested if requested from the Mayor/Do Governor for the designation of the special zone, and require the head of a relevant administrative agency to provide a response within 20 days upon request for consultation from the Minister of Unification and the Minister of Land, Infrastructure, and Transport

C. Designate the development project implementor (Article 13)

 - Require the Mayor/Do Governor to designate government-owned companies, such as Korea Land and Housing Corporation, the Korea SMEs and Startups Agency, and others meeting certain qualification requirements as the development project implementor.

D. Prepare and approve the implementation plan (Article 16 to Article 20)

 - Define details including how to prepare the implementation plan, which is to be prepared by the development project implementor, an application for approval, matters for consultation, and a notice of approval E. Define the criteria and scope of occupant enterprises (Article 24)

 - Define the criteria and scope of enterprises allowed to occupy the Special Peace Economy Zone as trade enterprises under the Inter-Korean Exchange and Cooperation Act, enterprises approved for inter-Korean economic cooperation projects, and enterprises doing related upstream and downstream business and interdisciplinary advanced business 

F. Provide financial support for infrastructure (Article 26)

 - Define the eligibility and scope of support by review and resolution by the committee when the state provides financial support for infrastructure in the special zone

G. Establish and operate the committee (Article 27 to Article 34) - Define the establishment and operation of the committee and the exclusion, avoidance, evasion and dismissal of members of the committee

H. Delegate and entrust authority (Article 41)

 - Allow the Minister of Unification to entrust project performance evaluation and statistics preparation and management in the Special Peace Economy Zone to an entity or organization, and the Mayor/Do Governor to entrust the head of Si/Gun to inspect construction completion, permit restrictions on actions, receive reports, and enforce on their behalf

I. Impose administrative fines (Article 42)

 - Specify 5 million won for 1 violation, 7 million won for 2 violations, and 10 million won for 3 violations depending on the type and number of violations