The law was approved amid intensified international contempt after North Korea conducted its fourth nuclear test in January and launched a ballistic missile a month later in violation of UN Security Council resolutions.
In November, the UN General Assembly's third committee passed a resolution condemning North Korea's human rights record and urged a referral of the country to the International Criminal Court for alleged crimes against humanity.
North Korean leader Kim Jong Un denied the accusations, saying that the committee's decision was backed by the United States and other countries aiming to overthrow the North Korean leadership.
On Tuesday, North Korean Foreign Minister Ri Su Yong said North Korea would boycott the ongoing UN Human Rights Council session, and would not be bound by its resolutions.