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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¡¦ [88]
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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