Taking the specific features of the capitalist trade and industry at that time into consideration, the WPK pursued the policy of transforming the capitalist traders and industrialists on socialist lines, not confiscating their properties.As the properties of the foreign imperialists and comprador capitalists had been already confiscated without compensation and nationalized at the stage of the anti-imperialist, anti-feudal democratic revolution, the properties in the hands of the national capitalists were the only capitalist ownership left in Korea after the war.

Moreover, almost all the economic foundations of the capitalist trade and industry in the country were destroyed during the three-year-long war. So, not a few businessmen and traders went to the pot and joined state-owned workers or office workers and the remaining capitalist traders and industrialists found themselves in the same position as handicraftmen and small merchants. under this situation they could neither operate their economy nor improve their living without support from the state and socialist economy.

The WPK thus could transform the capitalist traders and industrialists on socialist lines by inviting them to join the cooperative economy, not by confiscation. In this process the WPK closely combined transformation of economic form with remoulding of man. The WPK saw to it that businessmen and merchants were encouraged to join cooperatives and ideological education was strengthened among them to root out their nature as exploiters and they took a direct part in production to become socialist working people.

The socialist transformation of the capitalist trade and industry was completed in August Juche 47 (1958), which was nearly simultaneous with the realization of the agricultural cooperativization.

Pyongyang, April 14 (KCNA) -- A work for the nationalization of major industries was energetically pushed ahead with in Korea after the liberation of the country in August Juche 34 (1945).  The building of new democratic Korea could be sped up and an independent development of the national economy ensured only when the working class of Korea owned the key economic branches which had been held by the Japanese imperialists. The Worker's Party of Korea defined in a unique manner objects, principle and method of the nationalization in conformity with the specific conditions at that time. The principle was to confiscate without compensation all factories, mines, railways, communications, banks, trade and cultural establishments, etc., which had been in the hands of the Japanese imperialists and comprador capitalists.

The WPK saw to it that the nationalization did not sweep away the ownership of the national capitalists and minor entrepreneurs but their activities were encouraged. It took a measure of investing workers' committees organized at factories and enterprises with power to confiscate what had been owned by the Japanese imperialists and comprador capitalists and taking it over before promulgating the law on the nationalization of the major industries to declare by law that the ownership and use of the confiscated major industrial facilities and economic establishments went into the hands of the working class and all other people.

The WPK put up the slogan "Factories to the workers" and roused them to the struggle for the nationalization of the major industries. Along with this, it made sure that trade unions and factory committees were organized to awaken and unite the working class politically and organizationally. As a result, trade unions were organized in the railways, metal, machine-building and all other industries and the factory committees formed at every factory and enterprise in a matter of three months.

The workers brought under their control all the industrial establishments which had been owned by the Japanese imperialists, comprador capitalists, pro-Japanese and traitors to the nation while smashing the maneuvers of the reactionaries. As a result, the provisional people's committee of North Korea promulgated the law on the nationalization of the major industries on August 10, 1946.  This marked a historical event which legally confirmed and consolidated the conversion of the ownership of all the major industries in Korea into all-people, state ownership.