International spaces are often weird, especially Exclusive Economic Zones. In this case by established maritime law, North Korea too gets an exclusive claim on the oceans that border her shoreline 200 nautical miles out to sea.
It is in this area that fishing and mining rights are under the exclusive domain of North Korea.
As this is an international flag, any person born in the North Korean EEZ has a birthright to fly this flag. Also note just being born here does no guarantee North Korean citizenship.
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