North Korean media report the North has recently revised its law on foreign investment banks.

The state-run Korean Central News Agency says the revision to the Foreign Investment Bank Act provides tax breaks to the banks.

The report explains that banks operating for more than ten years in North Korea will be exempt for the corporate income tax in the first year they start to make profits. It also said foreign banks that advantageously offer loans to North Korean banks and companies will be exempt from the sales tax.

The report noted the overhauled act stipulates the categorization of foreign banks, the location of their establishment, details of their ownership and independence in management.

The revision is believed to be a measure to more aggressively attract foreign capital.