Fair and Equitable Treatment in the International Investment Regime of the Democratic People’s Republic of Korea

Abstract

Based on an overview of the laws of the Democratic People's Republic of Korea (DPRK) related to foreign investments, the treaty language employed in its fora of 24 bilateral investment treaties (BITs) and anecdotal evidence, this paper explores the state of fair and equitable treatment (FET) in the DPRK and attempts to assess potential risks. It does this by alluding to interpretations of international investment law provided in past decisions by international tribunals concerning investor-state disputes (ISDs). Doing so further permits the reader to understand the current position of the DPRK in the wider universe of international investment law. This in turn can act as a compass in the DPRK’s potential navigation towards harmonizing with wider regulatory norms in investment. In concluding, this paper argues that fostering a functional, rules-based investment regime in North Korea not only corroborates, but also facilitates other improvements in governance.