Nowadays there are some changes in international status of North Korea since they are removed from a list of state sponsors of terrorism. Many rumors about the health of Kim, Jung Il indicates that these changes might bring an opportunity for North and South to be unified. However, people in South Korea are very worried about the 60-year-gap especially in economy. This economic burden in unification might result in unrest in the society even after the unification. In order to achieve the peaceful unification and preservation of peace after the unification, South Korea must know and understand the current economic situation and the relating problem in North Korea. Therefore, we can minimize the economic burden in case of unification by utilizing its system with some modification. In North Korea, there were many attempts of economic reform influenced by the outer factor such as fall of Soviet Union. However, none of them was in fact successful. Let us examine the Sinuiju Special Administrative region as an example. Although North was desperately copying the economic special zone in Hong Kong establishing separate legislative, executive, and judiciary branch, they were not free from the central government. Therefore, it failed to attract foreign investors. Of course, there was fundamental and profound reason for its failure such as the North Korea's reform was not to intend the pure economic growth for its people but to strengthen the current ruling power such as Kim, Jung Il. In order to achieve the peaceful unification and preservation the peaceful status, we need to further the study on North Korea's economic reform and its problem.
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Abstract Introduction Change of Circumstance (Current Situation of North Korea) Kim Jung Il's sickness History of Foreign Investment Law(Legislation and Modification) From 1945 to 1960 During 1970's During 1980's During 1990's Rajin-Sunbong Free Trade Zone Sinuiju Special Administrative Region Gaesung Industrial Zone Characteristics and problems of Special Economic Zone Sinuiju SAR Law Gaesung Industrial Complex Law Mt. Kumgang Tourist Zone Law Reform Economic Reform Background of the Economic Reform48 Example of the Economic Reform - Price Reform54 Conclusion References