1.Overview
1. Overview
o The 8th Round Meeting
of Inter-Korean Economic Cooperation
Promotion Committee was held in Seoul from March 2 to 5, 2004.
-
Reached an agreement on 7 items including construction schedule for Gaesong
Industrial Complex.
- Engaged in actual consultation : plenary
conference (2 times), contact with the chairman of the committee and
committee
members.
2. Significance
Provided the timeline
for major economic cooperation projects such as the construction of Gaesong
Industrial Complex, the connection of Inter-Korean railroads and roads reconnection, and
the development of Mt. Geumgang Tourist District and laid foundation for
visible outcome this year
o Accommodate South Korean enterprises to
move in and work on
production as soon as the preparation for the pilot
project site of Gaesong
Industrial Complex is completed.
o Test-run
the Gyeongui Line and Donghae Line within this year and complete the
pavement work of the Gyeongui and Donghae roads at an early date.
o
Cooperate to finalize the development plan of Mt. Geumgang Tourist District
at an early stage.
o Finalize the schedule for Working-level
Consultative Meeting on Economic Cooperation Projects.
Agreed upon
concrete and substantial economic cooperation projects visible to the public
o The Prevention Project of Flood in the Imjin River Basin, after
years of discussion, will begin in earnest with an on-site survey in April.
o Agreed on establishing the Office of Inter-Korean Economic
Cooperation in Gaesong Industrial Complex, and thereby contribute to
reducing inconveniences and cost for the South Korean enterprises to
implement projects in North Korea.
Urged creation of an environment
for stable economic cooperation such as resolving nuclear issues and
reducing military tensions
o Emphasized that alleviating military
tensions would contribute to peace and tability of the Korean Peninsula and
create an environment in which companies can invest in the North without
concern so as to promote inter-Korean economic cooperation in a stable
manner.
o Contributed to stabilizing situations on the Korea
Peninsula through the growth of inter-Korean economic cooperation while
maintaining the keynote of dialogue for resolving nuclear issues through the
second round of six-party talks.
3. Explanation on Major Issues of
Agreement
Construction of Gaesong Industrial Complex
o
Agreed on a detailed schedule regarding the construction of the Gaesong Industrial
Complex
Pilot Project
- Undertake the pilot project of
33,000 square meters demonstration complex and establish a management body Complete the
pilot project Enterprises move in and work on production in the second
half of the year.
Phase I : 3.3 million square meters
-
Undertake Phase I of building infrastructure for 3.3 million square meters demonstration
site this year Accomodate private enterprises in phases, starting next
year, as the preparation for the construction site progresses.
-
Provide electricity and telecommunications on a commercial basis and in
a timely manner for smooth production activities of enterprises.
o Secured cooperation from the North
- Enact and promulgate
the sub-regulations of the Law on Gaesong Industrial Zone, and take
cooperative measures such as convenience guarantee necessary for supplying
infrastructure including telecommunications and electricity.
Connection of Inter-Korean Railroads and Roads
Railroads
o Test-run some sections of the railroads this year, entering the
opening stage of the reconnected roads.
- Proceed the test-run in a
way to check the railroads in advance and complement the imperfect parts for
opening of the railroads.
- Cross-check technical issues for opening
of the railroads through the test-run to guarantee the safe operation.
o Agreed to discuss designing and providing equipments and materials
for constructing railway stations at the border of Gyeongui Line and Donghae
Line to the extent necessary for opening of the railroads.
- Formed
cooperative relationship to enhance safety and provide conveniences for the
operation around the Northern Limit Line.
- Plan to discuss details
including methods, ranges and levels of provision at the 4th Working-level
Consultative Meeting on the Inter-Korean Railroads and Roads Reconnection
in late March.
Roads
o Agreed on early completion of
Gyeongui and Donghae Roads.
- Promote the convenience and safety in
undertaking economic cooperation businesses such as the pilot project of
Gaesong Industrial Complex, and Mt. Kumgang Tourism by land as the pavement
work of the roads is completed.
Mt. Geumgang Tourism Project
o Realization of developing Mt. Geumgang Tourist District
-
Agreed on early development of the Mt. Geumgang Tourist District so as to improve the
environment for enhancing profitability along with regularized tourism by
land that began last year.
- South Korean enterprises are working on
a development plan for the Mt. Geumgang Tourist District by outsourcing to WTO(World Tourism
Organization) and Kumho Engineering -> This plan will be presented to the
North sooner or later
o Related sub-regulations are expected to be
enacted soon.
- Two sub-regulations governing 'Development' and
'Business Creation' promulgated at present.
The Prevention of
Flood in the Imjin River Basin
o Agreed on having on-site survey
first and taking measures on the prevention of
flood.
- Independent
survey by South and North Korea (for 3 months from April) -> Joint Survey
-> Enforce the prevention measures such as building a flood forecast
facility and providing seedlings.
o A team of joint survey(comprised
of 15 members or so) will visit the South and the North sites arranged in
advance, starting the North sites first, for 7 days respectively.
-
The South may set up plans for rainy season by receiving data on weather and
floodgate from the North, 10 days prior to the independent survey.
o
Expected to expand the scope of cooperation into the fields such as the
bilateral utilization of water resources in the rivers shared by the South
and the North.
Establishment of the Office of Inter-Korean
Economic Cooperation within the first half of this year
o Establish
an office of consultation and negotiations for inter-Korean direct trade and
economic cooperation in Gaesong.
- Open at the same time as the
construction of the Development Office of Korea Land Corporation, which
started in December, 2003, is completed.
- Enable to solve high cost
and inconveniences incurred by indirect trade through intermediaries of a
third country.
o Issues regarding the make-up and operation of the
office will be consulted and
promoted through exchanges of documents.
- Function as a channel for liaison and consultation, and play a
material role as a centripetal support center for enterprises involved in
investment and trade in North Korea.
Bilateral visits of the
Missions for Economic Observation
o Expected to pave the way for
upgrading the inter-Korean economic cooperation as the bilateral visits of
Missions for Economic Observation are realized.
- Expected to help
the North understand market economy and manage its economy by the visit of
North Korean working-level economic mission to the South, which follows the
visit of high-level mission from October 26 to November 3 in 2002.
4. North-South Talks Schedule
o The 3rd Working-level
Consultative Meeting on Clearing Settlement : Mid march (Paju)
o The
4th Working-level Consultative Meeting on Railroads and Roads Reconnection : Late March
(Gaesong)
o The 3rd Working-level Consultative Meeting on the Prevention
of Flood in the Imjin River Basin : Late March (Gaesong)
o The 14th
Ministerial Talks : May 4 ~ 7 (Pyongyang)
o The 9th Inter-Korean
Economic Cooperation Promotion
Committee : June 2 ~ 5 (Pyongyang)
