The Democratic People's Republic of Korea (DPRK) has decided to establish a special economic zone, signaling that the country is carrying forward with its economic reforms, China's Global Finance reported Wednesday, citing local media.

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The DPRK's parliament, the Supreme People's Assembly, approved the establishment of the Hwanggumphyong and Wihwa Islands Economic Zone on Monday, saying in a decree that the zone is intended to "further strengthen the friendship between the DPRK and China and expand external economic ties," according to the Korean Central News Agency, the nation's official news agency.

The decree did not, however, offer a detailed development plan of the economic zone.

The two islands sit at the estuary of the Yalu River, a border river between the DPRK and China.