The chief administrator will be in charge of the three branches of the government (legislative, judicial executive), an imitation of the management concept of Hong Kong？s SAR. However, the restrictions of the movement of the population between Sinuiju and other regions of North Korea is an important facet of the North？s government, which prevents other regions from being exposed to the flood of capitalism, while maintaining a one-nation, two-system policy.

On the establishment of a barrier between Shinuiju and other regions, Yang Bin, Chief Administrator for Sinuiju, told the foreign news media, ？Kim Jong Il believes that the separation of the North Korean people from the capitalist district is necessary. We are going to build a physical wall around Shinuiju to carry out this policy.？

Sinuiju？s population will be completely changed. Currently, 200,000 people live in the region, most of whom are military personnel and their family members. Within the next 2 years, these people will be forced to move to other regions of North Korea. On the other hand, Sinuiju will be a haven of foreign and Northern businessmen. The population is likely to increase to 500,000 by 2004.

In 1980, the Chinese city of Shenzhen was designated a ？first special economic district.？ Nobody can enter the district without a visa or special permission. It is almost impossible for farmers living in other regions to enter Shenzhen; Elites with a bachelors？ or masters？ degree, however, can easily enter the city if they are employed in the district. Because of this, 97 percent of the total population of 7,000,000 is composed of immigrants from other regions. Shenzhen is also number one in terms of population density, with 3,596 people per square kilometer.

Yang Bin said that the judicial system of Sinuiju would be controlled by Westerners, and promised to appoint a Westerner to become the first head of the Ministry of Justice. By importing a European legal system, the North hopes to make foreign investors feel more comfortable in Shinuiju. In addition to that, it says that foreigners will fill more than half of total seats in the municipal assembly.

The structure is quite similar to that of Hong Kong. Although Hong Kong was handed over to China from Britain in 1997, the Chinese government still maintains a British style of education, and has appointed those with a British education to high-ranking posts. This policy persuades foreign investors to stay in Hong Kong.

Investment conditions in Sinuiju could be better than the Chinese special district ？ Yang Bin has suggested an unprecedented low tax rate. There is no tax on import or exports and a tax rate of 14 percent will be levied on personal income, less than Hong Kong？s 16 percent and Shenzhen？s 15 percent.

Like Hong Kong, the private ownership of land and the establishment of foreign firms will be allowed in Sinuiju. The Asian Wall Street Journal reported, ？Most investors in Sinuiju would be Chinese-Koreans, and Korean and Japanese firms would lead in manufacturing.

The US dollar is to be one of the official currencies in the district, and foreigners will not require a visa to enter. In this regard, Shinuiju is closer to Hong Kong, where no visa is required, rather than Shenzhen and Zhuhai, where a special visa is required. Although an official decision has not been made, the dollar is likely to be the official currency.

Since the administration expects trade with China to be heavy, the Chief Administrator wanted to adopt the Chinese renminbi as its official currency, but the Chinese government is said to have opposed the move. The main fields of business are likely to be finance, manufacturing, and tourism. Gambling is being planned, unless tax revenues from gambling exceeds 10 percent of the area？s GDP.

(Lee Kwang-hoi, santafe@chosun.com )