The understanding of real estate of North and South Korea contains the most fundamental heterogeneity amongst the political-economic terms that differentiate each side. Especially, the differentiation is very clear regarding the structural foundation ...
The understanding of real estate of North and South Korea contains the most fundamental heterogeneity amongst the political-economic terms that differentiate each side. Especially, the differentiation is very clear regarding the structural foundation paths the both side took in theland reforms. North Korea analyzes the finalization of the land reform as a moment on which the socialist system is stabilized, and therefore instituted the land ownership based on unconditional confiscation and redistribution. Specifically, all lands officially belong to the state and the labor unions. Nevertheless, South Korea acknowledged the notion of understanding land as an assent, and therefore maintained the traditional feudal ownership of land. The difference in the concept of land and its ownership is the biggest difference between socialism and capitalism.
Around the year 2000, as the North and South Korean economic collaboration increased, the problems regarding real estate are becoming a sensitive issue. On August 2004, by issuing the ‘Real Estate Regulation in Kaesong,’ North Korea is showing changed notion on the use and the ownership of landand building in specific areas. Moreover in 2007, as North and South summits, through the October 4th declaration 5tharticle, proposed the ‘West Sea Peace and Collaboration Area,’ interests on North Korean real estate regulations are increasing. The ‘Real Estate Regulation in Kaesong,’ deals with the overall real estate related issues including: extension and ownership of the right to use land and ownership of a building, length of lease on land, selling and renting real estate, change of ownership of land, a fee on using land, extending the use of land, and inheritance of land. According to the standards provided by Kornai, the change of the real estate related land ownership regulations in North Korea can be criteria forforeseeing the reform within the established system.
Despite the existence of various causes for conflict, in order to invest and collaborate economically with North Korea before unification, the research on the perception and the change of real estate in North Korea has its importance. This paper, in order to examine the land policy of North Korea, specifically regulations on real estate, and the perception on these matters, investigates the change of definition of notions clarified by the important North Korean official documents.
By examining outcomes of research in South Korea on North Korean real estate, I was able to find out that the application of the North Korean documents was minimal andthe internal changing procedure in North Korea was not described accordingly. Therefore, this paper developsits argument through the examination of the North Korean perspective on the concept such as land ownership and the right to use. Specifically, in North Korea the personal ownership of land is defined as a legacy of hackneyed society and the evil practice of capitalist society and has been used as a part of propaganda. Moreover, even after the introduction of the concept of ‘real estate,’North Korea is not reversing its definition, and is passively acknowledging the concept regarding the Kaesong industrialized zone. I would like to investigate the real estate related regulations that has been defined and institutionalized since 2000, specificallythe regulations regarding the Kaesong industrialized zone, and I would also like to examine and perceive the real estate regulation as a continuation and a reformation of North Korea. Finally, based on these examinations, I would like to point out a possible cause of a crisis ahead of the South and North economic collaboration.
In order to do this, I would like to discuss the change of perception on real estate, by examining the concept of real estate in dictionaries that are published from 1970 to 2000, and related articles in the North Korean economic journal called ‘The Economic Research.’ Especially, a process of accepting the concept of ‘real estate’ as a normal economic term from expelling it as a remnant of capitalism and hackneyed society appears between the end of the 1990s and the beginning of the 2000s. One of the reasons why North Korea changed its position can be attributed to the confidence in efficiency by improved relationship between the North and the South. However, the real estate rental regulations are not actively created in North Korea. In addition, these regulations are applied to foreigners or the restricted area open to foreigners.
However, despite these North Korean authorities’ intentions, the personal real estate exchanges, which appeared around the economic reforms policy on July 1st, 2002, seem to grow vigorously. These activities are spreading around the border areasand big cities.
Eventually, North Korean authority is likely to assimilate the real estate regulations attained through the Kaesong industrialized zone to create new regulations on the capitalistic phenomena created internally. If North Korea relaxes the interpretation of the public ownership and the use of land, which is the most important characteristicof the socialist system; it has the biggest possibility of becoming the beginning of the vortex of change.