There are two ways to pay rent for land lease contracts. One is annual payment, which is paid annually. The other is lump-sum payment, which is paid at once when acquiring land use rights. In the case of annual payment, the return on investment fluctuates according to the payment rate because the land rental fee can be adjusted annually. This study analyzed the relationship between the land rent payment rate and return on investment when the land rental system is applied to North Korea’s special economic zones.
A lump-sum payment can be helpful for urban infrastructure construction because it enables the procurement of significant funds at the early stage. However, there are concerns that real estate speculation may occur, as in China. Conversely, annual payment allows the public to recover excessive rent. However, compared to lump-sum payment, it is difficult to procure development costs at the early stage to construct urban infrastructure because there is no initial funding. Moreover, the participation of the private sector decreases since it is not possible to secure investment profits corresponding to the investment risk.
The results of the analysis using the investment model show that the value of real estate increases in the form of an exponential function as the rent increases. Furthermore, the return on investment was found to be moderate at first and to sharply decrease as the land rental fee payment rate increased.
These results suggest that mixing a lump-sum payment and an annual payment is reasonable to set the land rental fee in North Korea’s special economic zone, and that the land rental fee should be set in relation to the future cash flow of real estate.

Abstract
Ⅰ. 서론
Ⅱ. 선행연구 고찰
Ⅲ. 분석의 틀
Ⅳ. 토지임대료 납부율 분석
Ⅴ. 결론
인용문헌References