North Assessing Its Real Estate Value

Minju Chosun, published by the Cabinet of North Korea, reported on April 19 that the North Korean government is evaluating the real estate value across the country. The North’s official daily mentioned the on-going evaluation efforts in the editorial, emphasizing execution of this year’s budget set by the Supreme People`s Assembly during its fourth meeting on April 11.

“The government should actively engage in the evaluation process and contribute to generating the country’s financial resources,” the paper stressed.

Donga Ilbo reported on April 13 that North Korea is preparing for an economic reform centered on real estate reform, and that it intends to replenish national finances through real estate leases.

North Korean leader Kim Jong Il purportedly ordered real estate reform earlier this year. A source said that the cabinet decision delivered on January 19 was related to Kim’s order on January 4 to lease real estate. Kim made a secret visit on January 10 to southern parts of China, a center of the country’s open and reform policies.

The source also said that the cabinet set the price of buildings and ports based on additional construction costs whereas it decide the price of natural real estate such as mountains and streams based on their use value.