SinuijuSpecial Administrative Region (Korean: 신의주 특별 행정구) was a planned special administrative region (SAR) of North Korea based in the city of Sinuiju. Proclaimed in 2002, the SAR was envisioned to be directly governed as in the case of "Directly Governed Cities" but has yet to be put into de facto operation.
Proposals for a special economic zone in Sinuiju to introduce market economics were first proposed to Chinese-Dutch businessman Yang Bin in 2001, who was proposed to be the zone's director. Yang later accepted the proposal on several conditions; most importantly, rather than a SEZ, the proposed area would become a special administrative region, emulating China's special administrative regions (SARs) of Hong Kong and Macau. Under this proposal, the Sinuiju SAR would have its own "Basic Law" (기본법; Kibonpŏp), passport, flag and seal, and have large autonomy in all areas except foreign policy and defense. Though reluctant, North Korean officials eventually acceded to Yang's proposals.
In 2002, the Presidium of the Supreme People's Assembly promulgated the Basic Law of the Sinuiju SAR and appointed Yang Bin as its governor. However, before Yang assumed office, he was arrested by Chinese authorities and sentenced to 18 years in prison for tax evasion and other economic crimes. Afterwards, North Korea effectively abandoned the project.
History
In 2001, North Korean leader Kim Jong Il visited Shanghai, where Chinese officials attempted to impress him with China's economic reforms.[1] Impressed, Kim told Chinese leader Jiang Zemin that "From the time China started to implement the policy of openness and reform, it achieved a tremendous success, especially in Shanghai. This proves that this policy of the Communist Party of China is a correct one."[1] He was interested by greenhouses, and considered them as a potential solution to North Korea's food shortages. He learned the name of their developer, the Chinese-Dutch businessman Yang Bin, and told his subordinates to create contacts with him.[1]
Yang was willing to replicate his business in North Korea, and he and his colleagues travelled to Pyongyang and built a sample greenhouse. Kim Tong Gyu, a member of the Central Committee of the Workers' Party of Korea and the official in charge of negotiations with Yang, suggested to him on 21 January 2001 about a cooperation on a bigger project.[1] He told Yang about the failed special economic zone in Rason in the 1980s, and said that North Korea was considering creating a new 27 km² zone in Sinuiju, asking him whether he would want to be the zone's director. Yang told Kim he could not make this decision immediately, and Kim replied they were in no rush.[1]
On his next visit to Pyongyang, Yang said he agreed in principle, but with several conditions. He asked for the zone to be enlarged from 27 km² to 82 km², meaning that the bridge that connects China to Sinuiju would be included in the area as well.[1] He additionally said that it should not be a special economic zone, but rather a special administrative region. He explained the difference by saying a SEZ simply has a special economic regime, while a SAR has autonomy in almost every area except defense and foreign policy. He said that China had two SARs, Hong Kong and Macau, which at that time were established just a few years ago, and were the most economically successful cities in China.[1]
North Korean officials were reluctant, but Yang insisted by saying that foreign investors were already familiar with the SAR system. North Korean officials asked "But can we create a SAR but call it SEZ?" Yang, countered by saying the name was an important signal to foreigners. North Korean officials agreed, and Yang also negotiated that the new SAR would have its own Basic Law, published in open sources, its own passport, and its own flag and seal.[1] The Basic Law was heavily modelled after Hong Kong's, drafted by prominent lawyers from Hong Kong and Macau,[2] and stipulated that the SAR would last 50 years and would have its own legal system.[3]
In 2002, the Presidium of the Supreme People's Assembly promulgated the Basic Law of the Sinuiju SAR and appointed Yang Bin as its governor.[4] It announced that 30 September 2002 was the date the law would come into force.[1] Yang called on a press conference to talk about his plans. He announced that around 300,000 to 500,000 people of the city would have to resettle to the southern part of Sinuiju, which was not part of the SAR, while the rest would stay and become residents of the SAR. Planning to demolish much of the city, Yang envisioned building a city similar to Shenzhen, with industrial zones and commercial, tourist and entertainment areas.[3] He announced that the US dollar would become the SARs currency, and all foreigners would be granted visa-free access, including South Koreans. He announced that he was planning to appoint one to two South Koreans to the SARs Legislative Assembly.[1]
However, the SAR or the proposed reforms did not come into effect by 30 September.[1] Yang said that this was because North Korea was displeased with allowing South Koreans into Sinuiju freely, which he said would be rectified by creating a "compatriot document", similar to the Mainland Travel Permit for Taiwan Residents. He said North Korea had not yet completed the fence which would separate the SAR from the rest of the country, which he told was another reason for the delay. Yang planned to move to the SAR permanently by late October.[1] Before he formally assumed his post, he was arrested by Chinese authorities on 4 October and sentenced to 18 years in prison for tax evasion and other economic crimes.[2] While the North Korean authorities soon announced that the development of the Sinuiju SAR would continue and the SAR was put under the administration of its Commission of Foreign Economic Cooperation Promotion, the plans for the SAR were effectively abandoned.[1]
As of April 2008, the SAR reforms still have not been put into effect, and it is widely believed[who?] that North Korea has abandoned the project after Yang's arrest. In September 2004, Chinese-American merchant Julie Sa (沙日香) was reported as a possible successor as governor.[5] Between 2013 and 2018, a smaller Sinuiju International Economic Zone was developed, backed by the state-owned Sinuiju Zone Development Corporation. It hopes to develop high value projects such as software development, computer manufacturing and trade-related services.[2]
Area included in the Special Administrative Region
The order below follows the order given in the original decree.[6]
Due to the areas included in the Special Administrative Region, it is not one single contiguous region, as to get from Sinuiju city to Yomju County, one must pass through another county outside the region first.
Transportation
The SAR is served by rail at the Sinuiju Cheongnyeon Station. This station is a terminus station for trains from Pyongyang, capital of North Korea. Rail traffic from the station continues across the Sino–Korean Friendship Bridge over to China over the Yalu River. Public transport consists of trolleybuses.
Economy
A few factories and shipyard exist in Sinuiju, some producing consumer products for local use.[7]
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