250/1999 Coll.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Modified: 2/2010 Coll.
Ministry of Foreign Affairs says that 27 April 1994. February 1998 was in
Pyongyang signed an agreement between the Government of the Czech Republic and the Government
Democratic People's Republic of Korea for the promotion and reciprocal protection
investments.
Agreement entered into force, pursuant to article 12 paragraph 2. 1 day 10.
October 1999.
The Czech version of the agreement shall be published at the same time. In the English text of the agreement,
for its interpretation of the applicable, can be consulted at the Ministry of
Foreign Affairs and the Ministry of finance.
The AGREEMENT
between the Government of the United Kingdom and the Government of the Democratic People's of Korea
Republic on the promotion and mutual protection of investments
The Government of the United Kingdom and the Government of the Democratic People's Republic of Korea
(hereinafter referred to as "the Contracting Parties"),
Desiring to develop economic cooperation for mutual benefit
the two countries,
intending to create and maintain favourable conditions for investments by investors
one Contracting Party in the territory of the other Contracting Party and
Noting that the promotion and reciprocal protection of investments within the meaning of this agreement
encourages entrepreneurial initiative in this area,
have agreed upon the following:
Article 1
The definition of the
For the purposes of this agreement:
1. The term "investment" refers to each assets invested in
with regard to the activities of an investor of one Contracting Party
on the territory of the other Contracting Parties in accordance with the laws of the other Contracting
Parties and shall, in particular, but not limited to:
a) movable and immovable property and any other property rights,
such as mortgages, pledges, guarantees and similar rights;
(b)), stocks, bonds, unsecured bonds of companies or any
other forms of participation in companies;
(c) the claim or claims) cash on any execution of the contract
agreement with the economic value associated with an investment;
(d)) intellectual property rights, including copyright, of the
trade marks, patents, industrial designs, techniques,
know-how, trade secrets, trade names and goodwill associated with the
the investment;
e) any right arising from the law or from the contractual arrangements and of the
any licenses and permits issued pursuant to the law, including concessions to
exploration, extraction, cultivation or exploitation of natural resources.
Any change in the form in which the values are invested does not affect the
their character as investments.
2. the term "investor" means any natural or legal person,
that invests in the territory of the other Contracting Party.
and) the notion of "natural person" means any natural person who is a national
citizenship of the Korean people's Democratic Republic or the United States
or in accordance with its laws.
b) "legal person" means, with regard to both parties
any company registered or established in accordance with its
laws and recognized by them as a legal person, which has a permanent seat on the
the territory of either Contracting Party.
3. The term "returns" means the amounts yielded from investments and includes
in particular, but not exclusively, profits, interest from loans, capital gains,
shares, dividends, licensing or other fees.
4. the term "territory" means:
and) in relation to the Czech Republic, the Czech Republic, over which
shall exercise sovereignty, sovereign rights and jurisdiction in accordance with the
international law;
(b)) in relation to the Democratic People's Republic of Korea the Korean territory
people's Democratic Republic, including the coastal territory and coastal
the sea and any marine or underwater area, over which the Korean
people's Democratic Republic will, in accordance with international law
the sovereignty, sovereign rights and jurisdiction for the purpose of the survey,
the exploitation and protection of the seabed, the subsoil and natural resources.
Article 2
The promotion and protection of investments
1. Each Contracting Party shall encourage and create favourable conditions
for investors of the other Contracting Party, to invest in its territory, and
such investments will allow, in accordance with its legal system.
2. Investments of the investors of each Contracting Party will be for every
circumstances, provided the proper and fair treatment and shall enjoy the
full protection and security in the territory of the other Contracting Party.
Article 3
National treatment and MFN clause
1. each Contracting Party shall in its territory for investments and returns
investors of the other Contracting Party treatment, which is the proper and fair
and no less favourable than that accorded to investments and returns of their
its own investors or investments of investors of any revenue and
of a third State, if it is more convenient.
2. each Contracting Party shall accord to investors of the other party within its territory
the parties, regarding the management, maintenance, use, recovery or disposal
with their investments, treatment which is the proper and equitable and not less
favorable, than to its own investors or to investors
any non-Member State, if it is more convenient.
3. the provisions on national treatment and MFN clause referred to in
This article shall not apply to benefits, which provides Contracting
Party on the basis of its obligations as a member of the customs, economic or
Monetary Union, a common market or free trade zone.
4. the Contracting Party agrees that the obligations of the other party
as a member of the customs, economic or monetary Union, a common market or
free trade zone includes the obligations deriving from international treaties
or bilateral agreements based on reciprocity of the tariff,
economic or monetary Union, a common market or free zone
trade.
5. The provisions of this Agreement shall not be construed to undertake one of the Contracting
hand to provide investors of the other Contracting Parties or their
investments or the proceeds of such an advantage, preference or privilege, that
a Contracting Party may provide, on the basis of an international agreement on
is wholly or mainly to taxation.
Article 4
Damage compensation
1. If the investments of investors of one or the other party will suffer
damage as a result of war, armed conflict, a State of emergency,
the riot, insurrection, riot or other similar events on the territory of the
the other Contracting Party, that Contracting Party shall afford them, as regards the
compensation, compensation, compensation or other settlement, a treatment no less
favourable than what the Contracting Party shall provide their own
investors or to investors of any third State.
2. Notwithstanding paragraph 1 of this article will be to investors of a Contracting
the parties, who, in any of the events referred to in the preceding paragraph
they will suffer damage in the territory of the other Contracting Party of:
) and seize their assets, by the armed forces or authorities of the other Contracting
party, or
(b)) the destruction of their property by the armed forces or authorities of the other Contracting
the party, which was not due to combat action or has not been invoked
the necessity of the situation,
granted restitution or fair and reasonable compensation for damage
suffered during or as a result of the destruction of the expropriation of property. The resulting payments
will be freely transferable without delay in freely convertible currency.
Article 5
The expropriation
1. investments of investors of either Contracting Party shall not be nationalized,
expropriated or subjected to a measure having the same effect as
nationalization or expropriation (hereinafter referred to as "expropriation") on the territory of the other
the Contracting Parties, with the exception of public interest. Expropriation shall be carried out
According to the law, on a non-discriminatory basis, and will be accompanied by measures to
payment of the immediate, adequate and effective compensation. Such compensation will
equal the value of the expropriated investment immediately before the expropriation
or before the intended expropriation became publicly known, will include
interest from the date of expropriation, will be carried out without delay, will be immediately
realizable and freely transferable in freely convertible currency.
2. The investor has the right to immediate review of its case and
evaluate your investments judicial or other independent authority of the Contracting
Parties in accordance with the principles contained in this article.
Article 6
Conversions
1. without prejudice to the measures adopted by the European Community, the Contracting
the Parties shall ensure the transfer payments related to investments and revenues. Conversions
will be made in freely convertible currency without any limitations and
unnecessary delay. Such transfers shall include, but not
exclusively:
and) capital and additional amounts to maintain or increase the investment;
(b)) gains, interest, dividends and other current income;
(c) the amount of the repayment of loans);
d) license or other fees;
(e) income arising from) total or partial sale or liquidation of
the investment;
f) salaries or other lawful income of persons having foreign citizenship,
that are employed, and which is permitted to work in the context of
an investment in the territory of the other Contracting Party.
2. for the purposes of this agreement, will be used as the rate of conversion between the prevailing
course for common transactions at the date of transfer, unless otherwise agreed.
3. For transfers made "without undue delay" within the meaning of paragraph 1
This article shall be considered as transfers made within the time limit, which is
normally necessary for the implementation of such a conversion.
Article 7
Assignment of rights
1. If a party or the agency designated a Contracting Party
make a payment to its own investor because of the guarantees, which
provided in relation to an investment in the territory of the other Contracting Party shall recognise the
the other Contracting Party:
and each right or assignment) of the claim of the investor or the Contracting Party
the agency empowered to a Contracting Party, whether a transfer has occurred in law or
on the basis of the legal arrangements in this country, as well as
(b)) that the Contracting Party or the agency designated by a Contracting Party is in respect of
assignment of rights shall be entitled to exercise the rights and entitlements of this float
Investor and assume the obligations related to the investment.
2. The assignee's rights or claims shall not exceed the original rights or claims
the investor.
Article 8
Settlement of investment disputes between a Contracting Party and an investor of the other Contracting
the parties
1. any dispute which may arise between an investor of one Contracting
the parties and the other Contracting Party in connection with an investment in the territory of the
the other party will be subject to negotiations between the parties in dispute.
2. If any dispute between an investor of one Contracting Party and the second
a party will not be as follows settled within six months, is an investor
entitled to submit a case to resolve at its option, either:
and the competent court or administrative) of the Tribunal of the Contracting Party which is
a party to the dispute; or
(b) the International Centre) settlement of investment disputes (ICSID)
taking into account the applicable provisions of the Convention on the settlement of investment disputes
between States and nationals of other States, opened for signature in Washington, d.c.
DC 18. March 1965, in the event that the Contracting Parties are parties to the
of this Convention; or
(c)) the arbitrator or to the International Court of arbitration set up by ad hoc,
established under the arbitration rules of the United Nations Commission
for international trade law (UNCITRAL). Parties in a dispute may
agree in writing to changes to these rules. The arbitration award will be
final and binding for the two parties to the dispute and shall be enforceable in accordance
with national legislation, the contracting parties concerned.
3. the Arbitration Court will decide on the basis of law, when taking your
decision making in the account of the sources of law in the following order:
-the provisions of this agreement and other relevant agreements between the Contracting
the parties;
-applicable law the Contracting Party concerned;
-the provisions of special agreements relating to the investment;
-the General principles of international law.
Article 9
The resolution of disputes between the Contracting Parties
1. disputes between the Contracting Parties concerning the interpretation or application of this
the agreement will, if possible, resolved through consultations and negotiations.
2. If the dispute cannot be resolved within six months, will be on the
the request of either contracting party be submitted to an arbitral tribunal in accordance with the
the provisions of this article.
3. the arbitral tribunal shall be established for each individual case in the following
way. Each Contracting Party shall designate one arbitrator, within two
months from receipt of the request for arbitration. These two arbitrators then
Select a citizen of a third State, that will be with the consent of both Contracting
party appointed President of the Court (hereinafter referred to as "the Chairman"). The Chairman will
appointed to three months from the date of the appointment of the two arbitrators.
4. If, in one of the periods referred to in paragraph 3 of this article has not been
performed necessary appointment may be requested the President of the International
the Court of Justice to make the appointment. If the President of the citizen of any
the Contracting Parties, or for any other reason unable to perform the operation, the
the appointment of the Vice-President asked. If it is also Vice-Chair of the citizen
some Contracting Parties to enforce this Act or not, will be on the implementation of
the necessary appointment asked senior member of the international
of the Court who is not a citizen of any of the Contracting Parties.
5. the arbitral tribunal adopts its decisions by majority vote. Such
the decision is binding. Each Contracting Party shall pay the costs of their
arbitrator and its participation in the arbitration proceedings; the costs of the Chairman and other
the expenses will be borne by the parties equally. The Court of arbitration
shall determine its own rules rules.
Article 10
Essential security interests
This agreement shall not preclude any contracting party to apply measures necessary
in order to maintain or restore international peace and security or for
the protection of its own essential security interests, which may
include interests arising from its membership in the customs, economic or
Monetary Union, common market or free trade zone.
Article 11
The use of other provisions and specific commitments
1. in the event that there is some question dealt with at the same time this agreement and
another international agreement, to which both parties are party,
Nothing in this Agreement shall prevent any party to or of any
the investor who owns the investments on the territory of the other Contracting Party,
He took advantage of any rules that are more favourable for him.
2. If the treatment granted by either party to investors
the other Contracting Party in accordance with its legal regulations or other
special contractual provisions is more favourable than that
provided for in this agreement, will be provided for more favourable treatment.
Article 12
The Applicability Of The Agreement
The provisions of this Agreement shall be applicable to future investments made
investors of one Contracting Party in the territory of the other Contracting Party and also on the
existing investments in accordance with the laws of the Contracting Parties of the date
the entry into force of this agreement. The provisions of this Agreement shall not apply
the claims arising out of events occurring before its entry in the
force, or the claims that have been settled before its entry into
force.
Article 13
Entry into force, duration and termination
1. this Agreement shall enter into force on the thirtieth day after the date on which the
the two Contracting Parties meeting their legal notifikovaly
the requirements for the entry into force of this agreement.
2. This agreement shall remain in force for a period of ten years. It will then be the
into force automatically continue after the following period of ten years, if the
one of the Parties notifies the other party in writing
twelve months before the expiry of the validity of its decision to terminate
The agreement.
3. for investments made before the expiry of this agreement,
the provisions of this agreement will remain effective for a period of ten years from the date of
the end of its validity.
4. this agreement may be amended by mutual written consent of the Contracting
party. Any modification to the Agreement shall enter into force as soon as each
the Contracting Party shall notify the other party in the fulfilment of all legal
the requirements for the entry into force of such amendments.
In witness whereof the undersigned, duly authorised thereto, have signed this agreement.
Given in Pyongyang on 27. February 1998 in two original copies,
in Czech, the Korean and English languages, all the texts are
just as authentic. In the event of any conflict in interpretation is
the decisive English text.
For the Government of the United States:
Ing. Alexandr Karych in r.
Ambassador Extraordinary and Plenipotentiary
Ambassador
The United States
The Government of the Democratic People's of Korea
States:
RI Song Year in r.
Vice-President of the Commission
for external economic relations
