National Economic Planning Law of the Democratic People’s Republic of Korea (2015)
AGLC4 | 인민경제계획법 2015 [National Economic Planning Law of the Democratic People's Republic of Korea (2015)] [tr Daye Gang].
Bluebook | Inmingyeongjegyehoegbeob 2015 [National Economic Planning Law of the Democratic People's Republic of Korea (2015)] translated in Law and North Korea by Daye Gang, https://www.lawandnorthkorea.com/.
Adopted on April 9, Juche 88 (1999), as Law No. 2 of the Supreme People’s Assembly
Amended and supplemented on May 17, Juche 90 (2001), as Directive No. 2314 of the Presidium of the Supreme People’s Assembly
Amended and supplemented on August 4, Juche 98 (2009), as Directive No. 206 of the Presidium of the Supreme People’s Assembly
Amended and supplemented on April 6, Juche 99 (2010), as Directive No. 748 of the Presidium of the Supreme People’s Assembly
Amended and supplemented on June 25, Juche 104 (2015), as Directive No. 553 of the Presidium of the Supreme People’s Assembly
CHAPTER I. BASICS OF NATIONAL ECONOMIC PLANNING LAW
Article 1 (Objectives of National Economic Planning Law)
National economic plans are the command of the State that scientifically predict economic development. The National Economic Planning Law of the Democratic People’s Republic of Korea shall strictly adopt systems and order in the draft and ratification of the national economic plan, its instruction and execution, and in review meetings, to serve to develop the national economy in a planned way.
Article 2 (Principle of planned development of the national economy)
The economy of the Democratic People’s Republic of Korea is a planned economy founded in the socialist ownership of means of production. The State shall strengthen the foundations of the independent national economy and shall develop the national economy in a planned way to ceaselessly raise people’s standard of living.
Article 3 (Principle of centralist guidance for national economic management)
Administering and operating the national economy under the centralist standardized guidance of the State is the consistent policy of the Democratic People’s Republic of Korea. The State shall command the national economy in a standardized way and shall manage and operate it according to a sole plan.
Article 4 (Principle of guaranteeing high growth speed of the national economy)
The national economic plan is a foundational means to realize the planned management of a socialist economy. The State shall assure the high growth speed of the national economy in conformity with the requirements of actual development, and must rationally attain balance.
Article 5 (Principle of attainment of mass line in drafting national economic plan)
Adopting the national economic plan through discussions with the producer masses, and making the drafted plan the thing of the producer masses, is an important principle of national economic planning work. The State shall thoroughly attain the mass line in national economic planning work to elevate the fervour and creative power of the producer masses.
Article 6 (Fundamental principle for drafting national economic plan)
Correctly adopting and correctly executing a national economic plan is a fundamental condition to develop the national economy in a planned and balanced way. The State shall correctly calculate socialist economic laws and realistic conditions to adopt a national economic plan that guarantees scientificity, practicality, and mobilisability, shall strengthen strict discipline in plan execution, and shall create benefits in economy work.
Article 7 (Principle of unifying and detailing national economic plan)
Unifying and detailing the national economic plan is a socialist planned work system and method. The State shall realize the unification and detailing of the national economic plan to assure the exclusiveness of planning work, and make sure that plans are interconnected in detail.
Article 8 (Principle of modernizing, scientizing national economic planning work)
The State shall strongly manage the material and technical foundations of planning institution to modernize and scientize national economic planning work.
Article 9 (Principle of training national economic plan workers)
The State shall correctly adopt a national economic plan worker training system to systematically grow competent plan workers.
CHAPTER II. DRAFTING NATIONAL ECONOMIC PLAN
Article 10 (Organizing national economic plan drafting work)
Drafting a national economic plan is the first process of economy work. State planning institutions, institutions, enterprises, and organizations shall make an organizational plan for drafting the national economic plan and must organize plan drafting work upon it.
Article 11 (National economic plan drafting standards)
The policies of the State are the standards for drafting the national economic plan. State planning institutions, institutions, enterprises, and organizations must draft a national economic plan based on the policies of the State.
Article 12 (Foundational materials for drafting a national economic plan)
State planning institutions, institutions, enterprises, and organizations must prepare foundational materials required for drafting a national economic plan, such as labour, standard of usage on facilities, resources, and funds, the state of business administration statistics, scientific techniques and economic development trends, the state of natural resources capable of generating wealth, and population. A national economic plan may not be drafted without preparing foundational materials.
Article 13 (Division of national economic plan indicators)
State planning institutions must divide national economic plan indicators among institutions, enterprises and organizations. In these cases, indicators that have strategic significance and important indicators that must be held by the State without fail shall be central indicators, and other indicators must be divided into local indicators and enterprise indicators, from the principle of correctly combining the creative power of State requirements with institutions, enterprises and organizations.
Article 14 (Classification of national economic plan)
A national economic plan shall be drafted by dividing it into a forecasting plan and a current plan. The current plan shall be drafted based on the forecasting plan.
Article 15 (Drafting national economic forecasting plan)
State planning institutions, institutions, enterprises, and organizations shall calculate the main causes of economic development such as the update and expansion of productive fixed assets, the development of natural resources capable of generating wealth, and scientific and technical development according to the national economic development direction, to adopt a national economic forecasting plan.
Article 16 (Drafting reserve numbers)
Drafting the national economic plan shall start with summing up reserve numbers. Institutions, enterprises and organizations shall sum up reserve numbers by calculating the possibilities of growth in production. Reserve numbers shall be submitted to higher level institutions and state planning institutions.
Article 17 (Drafting controlled numbers)
State planning institutions shall review the reserve numbers and sum up controlled numbers according to the national economic development direction to receive the ratification of the authorities concerned. Controlled numbers that have been ratified must be sent down to the institutions, enterprises and organizations.
Article 18 (Interconnection, drafting, and review of national economic plan)
The national economic plan must be adopted by the method of interconnecting the demands and sources of indicators divided for institutions, enterprises and organizations. In these cases, interconnection with the national economic plan may also be done by the method of an order contract. Institutions, enterprises and organizations shall conduct mass consideration from the principle of assuring the controlled numbers and make a draft national economic plan to submit to the higher level institutions and state planning institutions. State planning institutions shall correctly review the raised draft national economic plan and must make a State draft national economic plan to raise with the Cabinet.
Article 19 (Registration of national economic plan indicators)
The national economic plan shall be adopted according to indicators registered with the state planning institutions. Institutions, enterprises and organizations seeking to plan new indicators must register them with the state planning institutions.
Article 20 (Indicators that cannot be reflected in the national economic plan)
Labour, facilities, resources, and funds that cannot be interconnected, indicators for which scientific and technical deliberation has not been received, and indicators for which there is no ratified design document may not be reflected in the national economic plan.
CHAPTER III. RATIFICATION AND INSTRUCTION OF NATIONAL ECONOMIC PLAN
Article 21 (Basic requirements for ratification and instruction of national economic plan)
The ratification and instruction of the national economic plan is important work to deliberate on and approve a drafted national economic plan and send it down to the unit that will implement it. The Cabinet, state planning institutions, and local political institutions must deliberate on and approve the national economic plan in time and send it down to the unit to implement it.
Article 22 (Raising national economic plan for deliberation)
The Cabinet and local political institutions must raise the drafted national economic plan for the deliberation of the Supreme People’s Assembly or the local People's Assembly. In these cases, the Cabinet and the relevant People’s Assembly must deliberate upon it.
Article 23 (Deliberation and approval of the State and regional national economic plans)
The national economic plan of the State shall be deliberated upon and approved by the Supreme People’s Assembly. The State national economic plan and plans for its adjustment that are raised during a period when the Supreme People’s Assembly is not in session due to unavoidable circumstances shall be deliberated on and approved by the Presidium of the Supreme People’s Assembly. The national economic plan of a region shall be deliberated upon and approved at the given People's Assembly.
Article 24 (Instruction of national economic plan)
The Cabinet, State planning institutions, and local political institutions shall detail the ratified national economic plan by period and by indicator and must hand it down to institutions, enterprises and organizations by the end of October. Institutions, enterprises and organizations must actualize the national economic plan for which they have received instructions until they reach sufficient detail.
Article 25 (Registration of national economic plan)
Institutions, enterprises and organizations must register the national economic plan in time with the authorities concerned. Labour, facilities, resources, and funds may not be received without registering the national economic plan.
Article 26 (Balancing national economic plan)
State planning institutions and institutions, enterprises and organizations must do the work of balancing the work of the national economic plan. In these cases, they shall discover the state of instruction of the national economic plan and must take measures to mobilize reserves.
CHAPTER IV. EXECUTION OF NATIONAL ECONOMIC PLAN
Article 27 (Basic requirements of execution of national economic plan)
The national economic plan is a legal order, and correctly executing it is compulsory for institutions, enterprises, and organizations. State planning institutions and given institutions, enterprises and organizations shall correctly strategise and conduct the execution of the national economic plan to normalize production and must execute the national economic plan without fail by day, by month, by period, and by indicator.
Article 28 (Duty to inform of national economic plan and its execution)
The direct entity in charge of executing the national economic plan shall be the producer masses. Institutions, enterprises and organizations must inform in time the producers of the national economic plan and ways of executing it.
Article 29 (Entry into contract)
Institutions, enterprises and organizations shall correctly conclude contracts and must fulfil them without fail. Contracts founded in plans shall be concluded within a period determined from the time the national economic plan was instructed, and order contracts may be concluded frequently during the year.
Article 30 (Division by month of national economic plan)
The authorities concerned shall divide the national economic plan by month by each quarter and send it down to enterprises and organizations. Division by month must be done within the scope of the quarterly national economic plan.
Article 31 (Preparation to execute national economic plan)
Institutions, enterprises and organizations must prepare to execute the national economic plan. Production and construction may not be done without preparing for the execution of the plan.
Article 32 (Difference before and after executing the national economic plan, production of export products and cooperatively made products)
Institutions, enterprises and organizations shall correctly decide the difference before and after in executing the national economic plan and must concentrate their strength in the centric ring. They shall first produce important subjects and products predicted in export plans, and the production of products predicted in the cooperative production plan must be guaranteed within the first ten days of the month.
Article 33 (Guarantee of conditions required for the execution of the national economic plan)
Labour administration institutions, resources supply institutions, and financial banking institutions must assure in time the labour, facilities, resources, and funds required for the execution of the national economic plan. Facilities and resources must be supplied according to plans and contracts by kind, by specifications, and by material.
Article 34 (Mobilization of interior reserves)
Institutions, enterprises and organizations shall actively find interior reserves to rationally use in the execution of the national economic plan. The authorities concerned must mobilize and adjust in time the spare labour, facilities, resources, and funds of institutions, enterprises and organizations.
Article 35 (Command of state of implementation for national economic plan)
The Cabinet and authorities concerned shall correctly adopt a production command system to normally command the state of implementation for the national economic plan, and must take measures to execute it in time. Institutions, enterprises and organizations must report the state of implementation of the national economic plan to higher level institutions and to the State planning institution every day.
Article 36 (Prohibition on production and construction not in the national economic plan)
Production of goods and construction not in the national economic plan may not be done. Institutions, enterprises and organizations seeking to change and execute the national economic plan because of unavoidable circumstances must receive the approval of the institution that ratified it.
CHAPTER V. EXECUTION REVIEW MEETING OF NATIONAL ECONOMIC PLAN
Article 37 (Basic requirements of execution review meeting for national economic plan)
Correctly conducting the execution review meeting for the national economic plan is an important way to strengthen strict planned discipline and correctly execute the national economic plan. Institutions, enterprises and organizations must normally command and conduct review meetings on the state of implementation of the national economic plan.
Article 38 (National economic plan execution review meeting cycle)
The state of implementation for the national economic plan shall be the subject of a review meeting by month, by period, each first half of the year, and by year. Enterprises and organizations must also conduct review meetings by order for the state of implementation for the national economic plan.
Article 39 (Preparatory review meetings and completed review meetings)
Institutions, enterprises and organizations preparatorily conduct review meetings of the state of implementation for the national economic plan and shall adopt the required measures, and at the time the plan period ends they must conduct a completed review meeting for the execution of the national economic plan. In these cases, they shall keep the execution of the production plan at the centre and must also conduct a review meeting on the state of implementation of the plan for related indicators.
Article 40 (Evaluation standards for execution of the national economic plan)
Evaluation standards for the execution of the national economic plan are plans registered at the statistics institution. Statistics institutions must evaluate the state of implementation for the national economic plan using the registered plan and commanded plan execution performance.
Article 41 (Transfer, public announcement of the state of implementation for the national economic plan)
Institutions, enterprises and organizations must regularly inform their employees of the state of implementation of the national economic plan. The state of implementation of the national economic plan may be publicly announced.
CHAPTER VI. GUIDANCE AND CONTROL FOR NATIONAL ECONOMIC PLANNING WORK
Article 42 (Basic requirements for guidance and control for national economic planning work)
Strengthening guidance and control for national economic planning work is a basic guarantee to thoroughly attain the national economic planning policy of the State. The State shall correctly adopt a guidance system for national economic planning work and shall strengthen guidance and control over it.
Article 43 (Guidance for national economic planning work)
Guidance for national economic planning work shall be done by the State planning institution under the standardized guidance of the Cabinet. State planning institutions shall realize the unification and detail of the national economic plan, shall correctly adopt a national economic plan, and must guide it so that it is executed without fail.
Article 44 (Improvement of national economic plan drafting method)
State planning institutions shall improve the national economic plan drafting method in conformity with the requirements of actual development, and must provide guidance to do planning work based on it.
Article 45 (Supervision and control for national economic planning work)
Supervision and control for national economic planning work shall be done by the State planning institutions and the given supervision and control institution. State planning institutions and the given supervision and control institution must normally supervise and control the drafting, instruction and execution of the national economic plan, and the state of implementation at review meetings.
Article 46 (Exclusion of plan execution performance and damage compensation)
In cases where products have been produced or construction has been done that is not in the plan, using labour, facilities, resources, or funds interconnected with the national economic plan, they shall not be evaluated as part of the performance of the execution of the national economic plan, and the relevant damage to the misused or wasted labour, facilities, resources, and funds shall be compensated.
Article 47 (Administrative responsibility)
In the following cases, responsible workers of institutions, enterprises and organizations and individual citizens shall have the relevant administrative punishment imposed depending on the gravity.
1. In cases where the divided planning indicators have not been correctly interconnected or the national economic plan has not been instructed within the period determined
2. In cases where the national economic plan has been changed without receiving the approval of the ratifying institution
3. In cases where a shortfall has been caused to the national economic plan by not forming economic organizational work
4. In cases where the implementation progress for the national economic plan has been falsely reported
5. In cases where interference has been caused to the performance of the national economic plan by violating contractual regulations
6. In cases where interference has been caused to foundational production planning performance regardless of the plans by indicator, by only producing products that are easy to produce and create high revenues
7. In cases where production or construction has been done without a national economic plan
8. In cases where a contract has not been correctly entered into or has not been able to be fulfilled
Article 48 (Criminal responsibility)
In cases where acts in Article 47 of this law amount to a crime, responsible workers of the institutions, enterprises and organizations and individual citizens shall have criminal responsibility imposed according to the given provisions of the criminal law.
Last updated 20 November 2020
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