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초록·키워드
This paper suggests ways to prepare reunification of Korean peninsula by understanding the flow of the changes in North Korean real estate market by resolving the three concerns regarding the right to housing.
Firstly, there is a change in the housing policy from the North Korean authorities. North Korean government used to focus on the assurance and regulation of the right to housing, but since 2009, it has been paying keen attention to the housing fees by enacting the housing act and the real estate control law.
North Korea has been assigning the housing to its people since implementation of the ground rules for the right to housing in ‘North Korea Constitution of 1972’ and ‘North Korea Civil Law of 1990’. However, the housing transactions has become more vitalized despite of its efforts to control the order of utilization of housing and buildings through establishment of various regulations after observing the dramatic increase in covert transactions on housing rights in 1990s.
In addition, there is a direct correlation between the collapse of the national rationing system and vitalization of the real estate construction market triggered by active housing transactions. The collapse of rationing system in North Korea was due to the purchase, transportation and distribution system failing to operate normally after the death of Kim, Ilsung in July 1994. Having its successors fail to control the chaos in rationing system led to the North Korean government’s economic ruling function to follow the market principle.
North Korean residents, who could not be supplied by the government for their food and the daily necessities, obtained what they need from the farmers market which eventually invigorated the market system. The government attempted to control the farmers market, but as they still could not normalize the national distribution system, it officially converted the farmers market to general market, and since then, the market has become the mainstay of North Korean economy system.
Meanwhile, the housing transactions have only gotten more dynamic as the demand for the housing near terminal or markets increases. However, note that housing transaction in North Korea is illegal, and therefore subject to punishment. As such, real estate brokers colluding with the authorities started resolving the administrative procedures for housing transactions which led to individual capitalists conspiring with government officials and authorities to enable development of the real estate market by constructing, rebuilding and redeveloping the private houses and apartments.
Lastly, there is a shift in social perception and economic change in North Korea sprang from the speculative investment market in real estates combined with private capitals which is all initiated by transacting the right to housing. Also, there are alternatives to stabilize the housing market sought by considering the perception of people in North Korea in case of the sudden reunification.
The development of real estate market formed the newly rich in North Korea and the new class with power protecting them. This forewarns of the possibility of change in social structure where the social status based on the capital strength replaces the status traditionally given by loyalty and ancestry.
Private accumulation of capital is allowed in North Korea as much as the private property is legal. Although the title to personal housing (mostly in form of apartment) does not receive legal recognition yet, the private ownership is accepted as market economy develops. The ownership of private houses acquired from the existing real estate market cannot be denied by the mere logic laid on the concept of housing fees. In the same manner, this paper is concluded with the suggestion of the current legal character of home ownership in North Korea to be immediately converted from the right to housing to the ownership.
Firstly, there is a change in the housing policy from the North Korean authorities. North Korean government used to focus on the assurance and regulation of the right to housing, but since 2009, it has been paying keen attention to the housing fees by enacting the housing act and the real estate control law.
North Korea has been assigning the housing to its people since implementation of the ground rules for the right to housing in ‘North Korea Constitution of 1972’ and ‘North Korea Civil Law of 1990’. However, the housing transactions has become more vitalized despite of its efforts to control the order of utilization of housing and buildings through establishment of various regulations after observing the dramatic increase in covert transactions on housing rights in 1990s.
In addition, there is a direct correlation between the collapse of the national rationing system and vitalization of the real estate construction market triggered by active housing transactions. The collapse of rationing system in North Korea was due to the purchase, transportation and distribution system failing to operate normally after the death of Kim, Ilsung in July 1994. Having its successors fail to control the chaos in rationing system led to the North Korean government’s economic ruling function to follow the market principle.
North Korean residents, who could not be supplied by the government for their food and the daily necessities, obtained what they need from the farmers market which eventually invigorated the market system. The government attempted to control the farmers market, but as they still could not normalize the national distribution system, it officially converted the farmers market to general market, and since then, the market has become the mainstay of North Korean economy system.
Meanwhile, the housing transactions have only gotten more dynamic as the demand for the housing near terminal or markets increases. However, note that housing transaction in North Korea is illegal, and therefore subject to punishment. As such, real estate brokers colluding with the authorities started resolving the administrative procedures for housing transactions which led to individual capitalists conspiring with government officials and authorities to enable development of the real estate market by constructing, rebuilding and redeveloping the private houses and apartments.
Lastly, there is a shift in social perception and economic change in North Korea sprang from the speculative investment market in real estates combined with private capitals which is all initiated by transacting the right to housing. Also, there are alternatives to stabilize the housing market sought by considering the perception of people in North Korea in case of the sudden reunification.
The development of real estate market formed the newly rich in North Korea and the new class with power protecting them. This forewarns of the possibility of change in social structure where the social status based on the capital strength replaces the status traditionally given by loyalty and ancestry.
Private accumulation of capital is allowed in North Korea as much as the private property is legal. Although the title to personal housing (mostly in form of apartment) does not receive legal recognition yet, the private ownership is accepted as market economy develops. The ownership of private houses acquired from the existing real estate market cannot be denied by the mere logic laid on the concept of housing fees. In the same manner, this paper is concluded with the suggestion of the current legal character of home ownership in North Korea to be immediately converted from the right to housing to the ownership.
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