Abstract

This paper examines the change of North Korea’s real estate contract laws, predicts their future transition, and considers the possibility and limitation of mutual approach in real estate contract laws between South and North Koreas. North Korea used to not use the legal term of ‘real estate’ previously, but set forth ‘real estate’ and ‘real estate contracts’ as legal terms when instituting the 1990 Civil Act (Article 94). As opposed to reality, however, the Civil Act (Articles 148 and 179) and Real Estate Control Act (Article 28(6) and Article 30) of North Korea still prohibit the contracts of real estate, including sale and lease. The Civil Act (Article 94) of North Korea does not specifiy the specific contents of ‘real estate contracts,’ but they may be understood as claim contracts by the media of real estate and agreements on real right. On the other hand, North Korea received the legal system of China, and allows real estate contracts such as sale, exchange, lease, and mortgage in special zones and to foreigners in accordance with the Land Lease Act, RERKIZ (Real Estate Regulations for Kaesong Industrial Zone), and real estate regulations. To predict the future transition of North Korea’s real estate contract laws, the civil act shows the possibility of restrictively granting the loan for use of housing, and it is forecast that sale and the contract of exchange will be gradually accepted. In addition, it is expected that RERKIZ will be revitalized according to the reopening of South-North economic cooperation and be enhanced as a real estate contract law in special zones, and that the current system of China’s real estate contract laws will possibly be received with respect to land usufruct.

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