The marketization of North Korea, which started spontaneously after the economic crisis in the mid-1990s, has been expanded amid repeated control and permission of the authorities.
As residents' economic activities through the market are intensifying, ...
The marketization of North Korea, which started spontaneously after the economic crisis in the mid-1990s, has been expanded amid repeated control and permission of the authorities.
As residents' economic activities through the market are intensifying, formal and informal labor coexist.
From this, the state's control function over the labor force and the order of manpower allocation and movement according to the labor plan were transformed.
From this perspective, this study examines the structure of the North Korean labor marketization phenomenon and the changes in the legal system related to labor force management and control.
Through this, the purpose is to evaluate the character, characteristics, and limitations.
The phenomenon of labor marketization is related to labor marketization in state-owned enterprises. The other is related to spontaneous labor marketization in individual economic activities. The types of economic activity of the labor force can be classified into three categories according to the degree of state control.
First, special companies, first-class companies and other military and export-related companies. It is an area domain production operation is relatively smooth and control and management by traditional labor norms are maintained.
Second, as local companies and small-scale trade-related companies, production has stopped or the utilization rate is low. Accordingly, the control and management functions by traditional labor norms are weakened, and illegal labor market elements are mixed and operated.
Companies are engaged in production activities linked to the market in various forms and methods, which are illegal or illegal. 8.3 workers are allowed not to go to work on the condition of paying a certain amount and engage in free economic activities through the market.
Labor marketization is progressing as rental and consignment operations are popular in state-owned enterprises and commercial sectors.
The wealthy people rent and operate the buildings and facilities of state-owned enterprises, and entrust stores and restaurants to operate. At this time, the individual manager has the official title as the department to which the company belongs, and the person is selected and hired.
This made it easier for workers to move to other companies. However, as restrictions on movement of residence are strict, labor marketization is underway within a limited area.
Third, this includes consumer goods distribution, commerce, and service industries as the private economy sector. As a space for economic activity for most women, it is an area in which the self-sustaining labor marketization, which the national labor system does not reach, is proceeding with incomplete behavior. Some male workers do market activities while holding official jobs.
This sector is mostly a consumer goods market, and there is a handicraft industry. Most families and relatives engage in small-scale economic activities that combine capital and labor. Because of this characteristic, it is limited to very simple peripheral labor such as labour, daily wage labor, and so on.
In North Korea, the system of laws and regulations related to the management and control of the labor force is classified into two categories. The labor force management and operation legislation includes the 'Socialist Labor Act' enacted in 1978, the 'Regulations on Effort Allocation' enacted in 1986, and the 'Enforcement Regulations on Effort Allocation' enacted in 1987.
After entering the Kim Jong-un regime, it accepted the reality of state-owned enterprises where legal and illegal business activities were mixed, and legalized some of the illegal market linkage activities. Specifically, the central government's management interference and control over enterprises was reduced, and instead, increased autonomy and accountability were strengthened.
The Enterprise Act, revised in 2015, newly stipulated the granting of nine rights, including planning rights, production rights, organization management rights, effort management rights, and product development rights that constitute “management rights”.
Regarding the right to manage efforts, it is observed that enterprises are given the right to decide on the procedure for moving labor.
In order to improve corporate management, it is ordered to sign and recruit labor remuneration contracts with talented people for effective use.
In the Criminal Law, the provisions for private employment, violation of labor administration, and punishment for the not employed were abolished or the level of punishment was significantly lowered. Instead, it is applied in the Administrative Penalty Act.
In view of this, the level of reform in the current Kim Jong-un regime is considered to be significantly more advanced than the various reform measures in the 2000s.
However, there are only some changes in functions in charge of management and control. In other words, there is an unchanging limit in the fundamental basis of socialist labor policy.