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Date : November 30, 2020
Recent revision of Enterprise Act appears aimed at increasing trade
   https://www.dailynk.com/english/north-korea-recent-revision-enterprise… [107]
N. Korea’s recent revision of Enterprise Act appears aimed at increasing trade

North Korea’s recent revision of the Enterprise Act may have aimed to strengthen state control while reinvigorating trade conducted by small-scale work units and the earning of foreign exchange.

According to a Daily NK source in Pyongyang, the bill to revise and supplement the Enterprise Act includes provisions that reduce what private “kiji” pay to the state and encourage foreign exchange earning and trading activities.

A kiji is a small private business organization of about seven people that is nominally attached to a trading company.

The act has permitted payments to the state (in cash or kind) to be cut by a third and private business operators are now allowed to take a greater share. The relevant cadres have been ordered to encourage the establishment of enterprises by telling prospective entrepreneurs that they “may pay just 10% of their profits.” It remains unconfirmed, however, whether this has been clearly included in the legislation.

“Since the (individual’s) take has been increased, it could also be read as an instruction to do more private business or earn more foreign currency,” the source said, speaking on condition of anonymity.   ......

[Source: Daily NK]


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