Launch of Preparatory Committee for Establishment of Gaesong Industrial Complex
ROK Ministry of Unification
¡à Launch of Preparatory Committee for Establishment of Gaesong Industrial Complex Management Organization
O The Preparatory Committee for Establishment of Gaesong Industrial Complex Management Organization held a board hanging ceremony to launch its official operation for establishment of Gaesong Industrial Complex Management Organization.
O The Preparatory Committee, through its consultation with the North, will make its effort for the early establishment of Gaesong Industrial Complex Management Organization
- It, through its consultation with representatives of enterprises moving into the model complex, will collect enterprises' major concerns on general issues such as establishment of enterprises, construction of factories, employment of North Korean workers, and entrance and stay in the area
- The Preparatory Committee, based on the consultation, will set specific provisions concerning operations that the Gaesong Industrial Complex Management Organization will pursue
O The Preparatory Committee is divided into four teams: Planning Coordination Team, Industrial Complex Management Team, Business Support Team, and Administrative Support Team. It consists of one chairman and 20 staff members. Each team will pursue the following operations:
- Planning Coordination Team will be in charge of overall operations regarding the establishment and organization of the Management Organization
- Industrial Complex Management Team will be in charge of the overall management of the industrial complex and consultation with the North on establishment of the Industrial Complex Management Organization
- Business Support Team will be in charge of establishment of overall provisions concerning operations pursued by the Management Organization
- Administrative Support Team will be in charge of providing various administrative support
O Korea Land Corporation and Hyundai Asan will fill up 20 staff members for the Preparatory Committee by employing new members or dispatching their existing members. The government, if needed, will dispatch its personnel too.
- After launch of the Gaesong Industrial Complex Management Organization, newly employed members or dispatched members, in principle, will continue to work for the Management Organization
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¡Ø Role of Gaesong Industrial Complex Management Organization O Gaesong Industrial Complex Management Organization is a corporation to be established by South Korea in North Korean region in accordance with related provisions of Law on Gaesong Industrial Complex Area - It, through its consultation with the North's Central Administration for Special Zone Development, will take the role of operating the Gaesong Industrial Complex Area, the special economic zone - It will function as local business complex management corporation, and also take part of the government's role such as permission and approval of various business-related operations |
¡à Result of the Second Round of Working-level Consultative Meeting on the Construction of Gaesong Industrial Complex
O The South and the North held the second round of Working-level Consultative Meeting on the Construction of Gaesong Industrial Complex from June 24 through 25, 2004 in Gaesong, North Korea
- They were in serious consultation with each other on various issues to be raised in the pursuit of Gaesong Industrial development project such as provision of electricity, telecommunication and water, disposal of waste, customs and quarantine
- They also agreed to settle other pending issues to be raised through working-level contacts
O The South and the North also held working-level contacts between their clearing settlement banks, and initialed the agreement on clearing settlement operations between the South's the Export-Import Bank of Korea and the North's Foreign Trade Bank of DPRK
O The South, through the working-level meeting, put its focus on settling major concerns of enterprises such as provision of electricity and telecommunication and laying the legal framework such as subsequent agreement on telecommunication, customs and quarantine
- The South and the North agreed to continue their consultations regarding the scope of the North's participation in the provision of electricity, and establishment of specific procedures for customs and quarantine
O The South and the North, sharing their view that Gaesong Industrial Complex project will be a driving force behind the promotion of inter-Korean economic cooperation,
- agreed the necessity of cooperation for timely construction of internal basic facilities for supply of electricity and water and disposal of wastes, and laid the foundation for smooth operation of the future businesses there
O The South's the Export-Import Bank of Korea and the North's Foreign Trade Bank of DPRK held working-level contacts between their clearing settlement banks from June 24 through 25, 2004 in Gaesong, and initialed the agreement on clearing settlement operation
O The agreement between clearing settlement banks is significant in that the two Korea's banks met for the first time to deal with clearing settlement. It will lay the groundwork for direct settlement of accounts created in the process of inter-Korean trade, and will be a stepping stone for inter-Korean cooperation in the financial sector
O If the direct settlement between the two Koreas be put into practice, South Korean enterprises will be able to receive their bill directly from the Export-Import Bank of Korea, contributing not only to cost and time saving compared to the previous system of the indirect settlement via a third nation, but also to easy receipt of money sent to the North
¡Ø Clearing settlement refers to a payment system in which the North and the South's enterprises do not pay their bill on every trade basis but put their bills on the book of clearing account opened in the clearing settlement banks, and then settle their bill on a yearly basis
