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S-N Trade Promotion Office to Be Set Up

2003-08-29

Seoul and Pyongyang agreed on Thursday (Aug. 28) to open an office to promote direct inter-Korean trade by South Korean businesses in the North Korean city of Gaeseong, the site of an envisioned industrial park. The North also said it will allow the South to inspect three distribution centers for food aid sent by the South.

Finalizing their three-day economic talks, the two Koreas released a nine-point joint statement containing future steps for various cross-border economic cooperation projects, such as the Mt. Geumgang tourism program and the construction of the Gaeseong industrial complex.

During the sixth South-North Korea Economic Talks, the Pyongyang delegation decided to allow Seoul to make an on-site inspection of three of its food distribution centers next month. In May, Seoul agreed to send 400,000 tons of rice to the North. Almost 100,000 tons has already been shipped.

In addition, delegations from the two Koreas agreed to reconnect railways and roads across the heavily fortified buffer zone by the end of this year. Re-linking the Gyeongui and Tonghae railways and roads, severed just before the 1950-53 Korean War, is one of the most significant reconciliation projects jump-started by the historic inter-Korean summit in Pyongyang in 2000.

South and North Koreas also agreed to make concerted efforts to equip the Gaeseong industrial park so that it is internationally competitive. To that end, they decided to work on various follow-up measures, including opening offices in the complex for small- and medium-size South Korean businesses.

Measures will be taken to reactivate the ferry tours to Mt. Geumgang, operated by the financially troubled Hyundai Asan. The North pledged to resume overland tours to the resort area and designate the area as a special tourism zone as early as possible. The South vowed to consider giving financial support to the ailing business.

"The overland route will be reopened from Sept. 1 as scheduled," a member of South Korean delegation said. "But, the point is profitability."

As of June, Hyundai Asan had suffered financial losses of 800 billion won (roughly $680 million) since the launch of the program in November 1998.

The six-member North Korean delegation, led by Park Chang-ryon, returned to Pyongyang via Beijing. The seventh economic talks between the two Koreas will be held in Pyongyang in late October.

Source : www.korea.net