Korean Unification Bulletin ( No.53 Mar, 2003)
Korea-net
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Ministry of Unification of the Republic of Korea |
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Minister's Speech |
Speech by Minister Jeong Se-hyun on 34th Anniversary of
the Ministry of Unification
Dear 'Unification Family'members,
It is with pleasure that we come to celebrate the 34th anniversary of the birth of the Ministry of Unification. The Ministry of Unification was founded on March 1, 1969, which happened to be the 50th anniversary of the launching of our nation's independence movement.
The ministry started with staff of 45 with a resolve to write the history of our national unification and finish the era of division on the peninsula. Today, the ministry has become a pivotal national agency, where some 400 unification workers are carrying out the government's North Korea policy.
Created in the middle of the vortex of international politics and the Cold War, our ministry today stands at the forefront of opening the fortunes of the Korean people and is now at a historical turning point that will put an end to the Cold War on the Korean peninsula.
Here, I would like to express my gratitude to all members of the Unification Family, whose dedicated efforts for peace on the peninsula as well as recon- ciliation and cooperation between the South and the North, have made it possible for us to see the achi- evements today.
Members of the Unification Family,
In his inaugural adress, Presi-dent Roh Moo-hyun enuncia-ted a Policy for Peace and Prospe- rity for the unification,diplo- macy, security and economic areas.
The policy for Peace and Prosperity is intended to establish peace on the Korean peninsula and build the foundation for a peaceful unification by pursuing a mutual prosperity between South and North Korea. Furthermore, it is intended to lay a foundation for developing Korea as the business hub of Northeast Asia.
The establishment of peace on the peninsula is something we have long aspired for in the past. In the Participatory Government of Roh Moo-hyun, however, the scope has been expanded to cover Northeast Asia.
With regard to inter-Korean relations, the new policy aims to promote peace and prosperity, reinforcing the policy for 'reconciliation and cooperation'under the previous government.
This policy, then, is a comprehensive strategy that embraces peace on the security side and prosperity on the economic side. To implement the policy, four guiding principles are presented: resolution of issues through dialogue, mutual trust and reciprocity, international cooperation based on a ¡°Primary parties¡±principle between South and North Korea and expansion of popular participation.
The most urgent task facing us today is the North Korean nuclear issue, which we have to solve peacefully and immediately.
Another matter we need to sort out is to clear up the internal dissension in our society that surfaced in the course of pursuing our North Korea policy to further improve inter-Korean relations and promote continued, substantive cooperation.
The international circumstances surrounding the Korean peninsula are changing more rapidly than ever before. What lies before us is a historic task for us to create a framework for peace between the two Koreas and to open an era of mutual prosperity on the Korean peninsula and in Northeast Asia.
Since the North Korean nuclear issue is a pressing and critical question facing us, we must develop a breakthrough toward a peaceful resolution of the matter in close consultation with major powers having interest in the Korean problem, including the United States and Japan.
We have to continue on our path to reconciliation and cooperation with North Korea and must wisely cope with the crisis brought on by the nuclear issue.
Pyongyang wants guarantees of its regime stability and economic rehabilitation from Washington. However, they would not be forthcoming if it remained obstinate and tried to resort to brinkmanship.
Pyongyang must realize that its regime stability and economic recovery would be possible only after it has cleared up the concerns of the South Koreans and of the international community.
Unification is often referred to as a process, so is peace. It is a process that should precede unification. Difficult and hard as it may be, we will move toward creating peace through the resolution of the nuclear issue.
We should continue to work to build a framework for peace and cooperation between the two Koreas through the improvement of inter-Korean relations.
To that end, the various dialogue channels between the two sides should be institutionalized and made routine. The inter-Korean exchanges and cooperation projects, now in progress, should be further deepened and developed. Our assistance to North Korea should also continue so that our cooperative momentum may continue.
Critics often complain that even though there are active exchanges and cooperation between the two Koreas, there is a lack of cooperation in the military field. Accepting the criticism humbly, we should step up our efforts so that we can balance the progress in the field of peace and security with the progress in the field of exchanges and economic cooperation.
By following this process, we should be able to transform the unstable armistice agreement that has governed the precarious situation on the Korean peninsula for half a century, into a peace regime.
We must push for legislations and systems to enhance transparency and expand popular participation in them, so we can develop a stronger national consensus.
The North Korea policy of the South Korea Govern- ment is going to be based on national consensus a policy subject to a popular discussion. Also, the Government believes it very important to develop a bipartisan consensus by way of close cooperation with the ruling and opposition parties and the National Assembly.
Since national consensus is the basis of our North Korea policy, we are duty-bound to redress the pro- blems of the past.
History shows us that ushering in a new era at the expense of the past has never been realized easily. The process of moving half a century of confrontation and distrust toward reconciliation and cooperation can hardly be smooth.
We can claim to be the masters of this era, only after we have surmounted with wisdom and courage the historical challenges that we face in the course of making new history.
I would like to remind you that a new way of thinking is called for in the new Government.
The objective of the South Korean Government is to systematically build a structure of peace and the economic hub of Northeast Asia.
I ask you to do your very best in fulfilling the mission of this era that history and the people have entrusted in us. Take pride in newly opening a future for our country and people.
On the occasion of the birth of our new government and the 34th anniversary of the Ministry of Unification, let us renew our resolve to make our ministry an agency standing at the forefront of reform and change. Let us do our best and play a leading role in carrying out our policy of unification.
· This speech was made on March 2, 2003 in the Ministry of Unification
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Inter-korean Dialogue |
The 4th Working-level Talks on Connection of Inter-Korean
Railways and Roads
The 4th working-level talks on the connection of the inter-Korean railways and roads took place in Gaeseong, North Korea, from March 10-12, 2003.
During this meeting, the South and North discussed : ¥¡) practical ways to start work to connect the inter-Korean railways and roads, ¥¢) report on the results after its use of materials and equipment for the connection work of the railways and roads, and ¥£) the field trip of South Korean technical staff teams to verify the items in the notification.
Based on their discussion, they adopted the agreement. The agreement will contribute to transparency as it mandates to release the results after using materials and equipment for the connection work and verification of the facts.
Also, the South and the North were able to make some progress in the work to connect the inter-Korean railways and roads by agreeing to resume the track connection works for both Seoul-Sinuiju Railway and the Donghae (East Sea) Railway that were suspended for a while.
Agreement at the 4th Working-level Talks on Connection of
The South and the North held the fourth meeting of their working-level talks on the connection of South-North railways and roads in Gaeseong, North Korea, from March 10-12, 2003 and agreed as follows: 1. The South and the North will start the works to connect the tracks of the Seoul-Sinuiju Railway and the East Sea Railway at the end of March from the military demarcation line inside the demilitarized zone (DMZ) and go on with the works toward their respective directions without suspension.
2. In accordance with the Agreement on the Provision of Materials and Equipment for the Connection of Inter-Korean Railways and Roads, the South and the North will proceed with the notification of the results after using equipment and materials and a Southern technical staff's on-site visits.
3. The South and the North will agreed on the items and amount of materials and equipment needed to launch the works to connect the tracks of the Seoul-Sinuiju Railway and East Sea Railway, and the issue of adjusting the items and amount of the first shipment of materials and equipment. 4. The South and the North will closely cooperate so that materials and equipments for the connection of the railways and roads could be delivered and received via the temporary roads for the Seoul-Sinuiju Railway and East Sea Railway. 5. The South and the North will continue contact by exchanges of letters to resolve the issues concerning the total amount of materials and equipment to be provided to the North and the agreement on train operations. March 12, 2003 |
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Kim Gwang-lim |
Park Chang-ryeon |
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Chairman |
Chairman |
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The Southern Committee to |
The Northern Committee to |
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the Inter-Korean Economic |
the Inter-Korean Economic |
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Cooperation Promotion |
Cooperation Promotion |
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Committee Vice Minister |
Committee |
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Vice Minister |
First Deputy Chairman |
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Ministry of Finance and Economy |
National Planning Committee |
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Republic of Korea |
Democratic People's Republic |
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of Korea l |
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Exchange & Cooperation |
South and North Korean Labor Leaders hold
Unification Meeting in Pyongyang
Labor leaders from the two Koreas held a conference in Pyongyang on March 13 and adopted a three-point declaration calling for the ¡°unification by the Koreans themselves, peacefully and through the unity of all Koreans,¡±as called for by the June 15, Joint Declaration.
The meeting, titled ¡°2003 Conference of South and North Korean Workers for National Unification,¡± was attended by a delegation of the General Federation of Trade Unions in the North, led by head Ryom Sun-gil, and delegations from two South Korean labor oraga- nizations: the Federation of Korean Trade Unions, led by its leader Lee Nam-sun, and the Korean Confederation of Trade Unions, led by its chief Yoo Duk-sang.
In 2001, South and North Korean laborers held similar joint functions such as an ¡°Inter-Korean council of workers for national reunification¡±and a meeting to mark May Day.
The delegation from South Korea met in Pyongyang with Kim Yong-nam, chairman of the Presidium of the Supreme People's Assembly on March 14, and returned home the next day via Beijing.
Meanwhile, Rodong Sinmun, North Korean newspap- er published by the Workers'Party, on March 18 said the meeting of labor leaders from Seoul and Pyongyang served as an ¡°occasion for demonstrating their will to achieve national reunification.¡±
Inter-Korean Trade (January-March)
Inter-Korean trade totaled $128.2 million for the first three months of this year, up 45.6 percent from a year earlier. South Korea imported $57.4 million worth of goods, a 12.0 percent increase year on year, while goods valued at $70.75 million were shipped to North Korea, a surge of 92.5 percent.
Major items brought in were agricultural-forestry-fishery products and textiles. Major northbound shipments were textiles, steel, metal products and machinery.
The jump in the bilateral trade was ascribed to a sustained increase in commercial transactions,including deals on processing-on-commission arrangements, as well as in non-trade transactions under inter-Korean cooperative projects and humanitarian assistance. The trend is expected to continue in April.
During the first quarter of 2003, the South recorded a $13.3 million surplus in nominal trade, while the North registered a $41.4 million surplus in actual trade, not counting the value of non-trade (humanitarian) transactions.
Of the bilateral trade figure of $128.2 million, commercial transactions amounted to $73.5 million, up 18.3 percent from a year ago, and accounting for 57.3 percent of the total. The rest of a non-trade nature such as inter-Korean cooperative projects and humanitarian assistance came to $54.7 million, an increase of 111.2 percent from the same period of last year.
Eighty-nine companies, including 35 involved in Processing-on-commission basis, participated in the two-way trade of 338 items, including 133 handled under the processing-on-commission formula.
The Prospects for North Korea's Grain Supply in 2003
Due to structural problems, North Korea has been suffering from a grain shortage of about 2 million tons a year. The North's annual grain demand is estimated to be about 6 million tons, while its annual output level remains at around 4 million tons.
In 2003, North Korea's grain demand is forecast to be about 6.32 million tons and its output at about 4.13 million tons. This will leave a shortage of 2.19 million tons. Taking into account the 760,000 tons, including the grain shipments provided by the South in loans and the aid from the international community, the North will still be in need of about 1.5million tons of grain additionally.
South Korea Brings Forward North Korea Aid Plan
South Korean plans to give humanitarian aid to North Korea at an earlier date than first proposed through various U.N. agencies, an official at the Ministry of Unification said on March 20. The ministry will hold consultations with U.N. agencies, including the World Food Program (WFP), to discuss the details of providing humanitarian aid to the North and implement the measures after reporting to the National Assembly.
Meanwhile, South Korean government will provide 100,000 tons of corn worth $18 million to the North in the first half of the year through the WFP. It will also help the World Health Organization engage in quarantine operations to prevent the outbreak of malaria in the North by providing $700,000 next month. With a view to helping the children and impoverished people in North Korea, the South will also send $500,000 worth of goods to the North through the U.N. Children's Fund.
U.N. Special Envoy Visits North Korea Again
Maurice Strong, a special adviser to UN Secretary General Kofi Annan, made his second visit to North Korea, March 18-22 in the capacity of the UN leader's special envoy, according to the (North) Korean Central News Agency. His first visit to North Korea was made on Jan. 14-18.
While in Pyongyang, the envoy met with Foreign Minister Paek Nam-sun on March 19 and two days later with the North's titular head Kim Yong-nam, with the participation of Vice Foreign Minister Choe Su-hon and Masood Hyder, U.N. resident coordinator and resident representative of the UNDP Pyongyang office.
On March 18 Maurice Strong underlined the need for North Korea and the U.S. to hold direct talks, noting that there is no possibility of peacefully settling the North's nuclear issue without dialogue.
The North Korean news agency, KCNA made no detailed report regarding the main purpose of his vi-sit to the North, but UN spokesman Fred Eckhard on March 17 said Maurice Strong will discuss progress concerning the UN's emergency appeal for hum- anitarian aid to North Korea and other issues of mutual interest and concern with senior officials of the country.
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Trend in N.K |
6th session of the 10th SPA was held in Pyongyang
For the first time in recent years, North Korea is projecting the year-to-year increase rate in st-ate expenditures for this year at a double-digit rate, evidence of its ambitious programs aimed at revamping its moribund economy. But the North will issue public bonds probably to make up for shortages of state revenues and meet the spending demand, according to the (North) Korean Central Broadcasting Station.
During the sixth session of the 10th-term Supreme People's Assembly held in Pyongyang on March 26, Finance Minister Mun Il-bong put the outlay increase rate for fiscal 2003 at 14.4 percent, compared with the increase rates of 2.3 percent last year, 3.5 percent in 2001, and 4.7percent in 2000.The North projected the rate of increase in the state revenues this year at 13.6 percent, while planning to float ¡°bonds for people's life¡± aimed at utilizing surplus funds.
The increase rates of revenues were 2.5 percent last year, 3.5 percent in 2001, and 5.6percent in 2000.Mun, however, failed to clarify the budget figures in North Korean won, indicating the problems arising from the radical change in the wage and pricing system last July. The North, for instance, increased the average monthly payments to production workers from 110 won to 2,000 won, effective July 1 2002, while raising the prices of rice sold at the state shops to 44 won per kilogram from 0.08 won.
The budget bill for fiscal 2003 calls for allotting 15.4 percent of the total spending for national defense, up from 14.9 percent last year. It also calls for increasing outlays for the farming sector by 21.3 percent over last year. The comparable increase rates, as revealed by the finance minister, are 15.7 percent for the science-technology sector, 15.3 percent for education, 12.8 percent for power industry, 12.4 percent for light industry and 18.6 percent for forestation and other programs to improve living environments in urban areas.
In a speech following the finance minister's briefing on the state budget for this year, Deputy Premier Kwak Bom-gi revealed the North set the industrial production growth rate this year at 38 percent. He also said the government will tighten the economic management in such a way as to use the fund from the public bonds effectively for developing the national economy and promoting people'swelfare.
While briefing SPA deputies, Mun said that last year the North enjoyed a 12 percent increase in overall industrial production over the preceding year and that it poured 22.7 percent of the total state outlays into various economic sectors. Expenditures last year were 0.5 percent more than the budget endorsed by the SPA, which totaled 22.17 billion won, and revenues were 0.2 percent short of the budget bill.
North Korean leader Kim Jong-il, who has attended all of the previous five sessions of the 10th-term SPA, did not participate in the sixth meeting. Taking the seats reserved for VIPs at the SPA session this year, which was presided over by SPA Chairman Choe Thae-bok, included Kim Yong-nam, chairman of the SPA Presidium; Premier Hong Song-nam; and six members of the all-powerful National Defense Commission: Kim Il-chol, Ri Ul-sol, Jon Byong-ho, Yon Hyong-muk, Kim Chol-man and Ri Yong-mu. Also on hand were Han Song-ryong and Kye Ung-tae, both secretaries of the Workers' Party Central Committee.
While approving the results of fiscal management last year and the state budget for this year, the SPA, the North's rubber-stamp parliament, also endorsed five laws adopted by the SPA Presidium while it was in recess, which regard military service, city planning, rivers and streams, accounting and ¡°structure.¡±
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Internet Sites of the Ministry of Unification |
Chronology
of Inter-Korean |
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http://www.unikorea.go.kr |
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- For its part, the South proposed to convene the third maritime consultations and the second economic cooperation meeting in Pyongyang from March 26-29.
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·The World Food Program released a report indicating that the North would be short of 1.1 million tons of grain this year.
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·The representatives of South Korean labor organizations wound up their visit to the North. Their consultation with their North Korean counterpart resulted in an agreement to jointly hold the ¡°May Day¡±ceremony in Pyongyang and sponsor an inter-Korean soccer game in Seoul.
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·A Unification Ministry spokesman urged the North to heed the calls of the international community for a peaceful resolution of its nuclear issue.
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·Kim Young-nam, chairman of the North Korean Supreme People's Assembly, received Morris Strong, UN secretary-general's special envoy, who was visiting the North.
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·ROK Ministry of Unification expressed regrets over the cancellation of the talks.
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·The North Korean Army Representative at Panmunjom refused to attend a Panmunjom liaison officers's meeting in protest of the annual ROK-U.S. military exercise.
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·ROK foreign minister and U.S. Secretary of State agreed that the North Korean nuclear issue must be resolved peacefully within a multinational framework. |
