통일부

o By inheriting and further developing the preceding government's reconciliation and cooperation policy, the Participatory Government's "Policy for Peace and Prosperity" is pursuing a consistent policy of engaging the North.

o In particular, despite the North's nuclear issue, inter-Korean dialogue and exchanges have been taking place on a regular basis with substantive development in each area of cooperation.

  o South Korean companies will move into the model complex of the Gaeseong Industrial Complex and enter the stage of actual production of goods from the latter half of this year.

- It will be a breakthrough for South Korean small and medium-sized enterprises in their effort to boost business activities. The complex will also serve as a lab where North Korea can learn about the market economy.

- It will also contribute to relaxing tensions in the area near the Military Demarcation Line, serving as a "peace-building project."

o The roads linking the two Koreas, which are scheduled to be opened in October this year, will serve as "infrastructure" contributing to the development of the Gaeseong Industrial Complex and the boosting of the Mt. Geumgang tourism project.

- Axes for inter-Korean exchanges of personnel and distribution of goods will be formed around these special districts. When the axes are combined with the opening of cross-border railroads, the connection between the special districts and Mt. Geumgang tourism project will generate a positive synergy effect .

o Since the launching of tours to Mt. Geumgang by an overland route on September 1, more than 10,000 South Korean tourists visited the mountain each month. Development of various tour packages including one- and two-day trips has been expanding the basis for a stable pursuit of the tour project.

o The two Koreas have been paving the way for more active civilian-level economic cooperation, including inter-Korean trade.

- During the period of January through May of this year, inter-Korean trade volume stood at US$256.16 million, up 22.3% from the same period of the previous year.

. A compensation system for businesses incurring a certain amount of loss in inter-Korean trade has been in place since May 14.

. We are pursing to establish an "Office for Economic Cooperation and Consultation" in the Gaeseong Industrial Complex.

. Once the "Inter-Korean Agreement on Maritime Transportation" becomes effective, it will link the seven harbors to be opened by the two Koreas respectively and thereby lead to direct inter-Korean transportation and reduction in the cost of distribution of goods.

o At the general-level talks held at Mt. Geumgang (May 26) and Mt. Sorak (June 3~4) this year, the two sides took the first step toward inter-Korean military cooperation by reaching an agreement on the prevention of armed clashes in the West Sea, stopping propaganda activities in areas around the Military Demarcation Line and removal of the means of propaganda in the area.

- In the first stage, the two Koreas successfully carried out wireless communication between their naval vessels in the West Sea on June 14. In addition, the two sides will discontinue all propaganda activities in the area near the Military Demarcation Line at 00:00 on June 15.

o The two Koreas will discuss measures to ease military tensions and build mutual trust by holding general-level military talks on a regular basis and resuming Defense Ministers' talks.

o Since the inter-Korean Summit held in 2000, about 9,000 individuals met with their separated families through nine rounds of reunions. In the future, the South Korean government will exert greater efforts to institutionalize inter-Korean reunions of separated families through the construction of a Family Reunion Center. It will also try and find a solution to the issue of South Korean abductees and prisoners of war in North Korea.

* The 10th reunion of separated families, the second reunion this year, is to be held at Mt. Geumgang on July 11-16.

o The South Korean government has been broadening the scope of its assistance to the North to encompass such areas as health and medicine, focusing on the alleviation of food shortages and improvement of agricultural productivity.

- The government has decided to deliver 200,000 tons of fertilizer by the end of June and provide 400,000 tons of food in the form of a loan.

- In addition, the government participates in various aid programs through international organizations, including such programs as improving nutrition for North Korean children and preventing malaria outbreaks.

o In a bid to support the North's restoration efforts in the aftermath of the recent train explosion in Ryongcheon, the South Korean government (ROK National Red Cross) and civilian groups have provided, through the World Health Organization, US$43.74 million worth of goods as of June 10 including emergency relief supplies, materials and equipment for restoration and assistance.

o Recently, North Korean personnel from various fields made visits to the South, demonstrating the country's supportive attitude toward inter-Korean exchanges.

- North Korean Personnel's Recent and Scheduled Visits to South Korea

. International Symposium on Northeast Asian Region Electric System Ties (May 17-22, 7 persons)

. Seoul Conference of the International Solidarity Council Demanding Settlement of Japan's Past (May 20-24, 9 persons)

. Inter-Korean Joint Symposium on Modern National Movements (June 2-5, 9 persons)

. IInter-Korean Joint Event on the 4th Anniversary of the June 15 Joint Declaration (June 14-17, Incheon, 100 persons)

. International Railway Symposium (June 17-18, 7 persons), etc.

o A virtual circle is slowly taking shape where economic cooperation is setting the stage for military cooperation and reduced military tension will create a stable environment for further economic cooperation.

- Balanced development of inter-Korean relations will contribute to the stability of South Korea's economy and alleviating of its population's security concerns.

o Based on the achievements made so far, the Participatory Government will strive to successfully carry out its "Policy for Peace and Prosperity" aimed at bringing lasting peace to the Korean peninsula and developing the peninsula into an economic hub of Northeast Asia.

< Appendix >

1. Inter-Korean Exchanges and Cooperation

South Koreans' Annual Visits to North Korea (excluding tourists visiting Mt. Geumgang)

(Unit: Persons)

Number of South Korean Tourists Visiting Mt. Geumgang (554,594 persons by sea routes on 1,164 voyages; 97,425 persons by overland routes on 231 occasions)

North Koreans' Annual Visits to South Korea

(Unit: Persons)

Inter-Korean Visits by Overland Routes (CIQ)

Annual Inter-Korean Trade Volume

As of Apr. 30, 2004 (Unit: US$ in millions)

Annual Trade Items

As of April 30, 2004

Application of the South-North Cooperation Fund

(Unit: KRW in hundred millions)

2. Social & Cultural Exchanges

Humanitarian Assistance to North Korea (Government & Civilian)

(Unit: US$ in tens of thousands)

Assistance to North Korea by Area (as of May 2004)

Unit: US$ in tens of thousands (Numbers in parentheses represent percentages.)

Government-Level Reunions of Separated Families Since the June 15 Summit

(Unit: Persons)

3. Inter-Korean Talks

Annual Inter-Korean Talks: 468 rounds in total (From 1971 to June 10, 2004)

(Rounds)

Inter-Korean Talks by Area: 111 rounds since the inter-Korean summit (including the summit)

- 19 political talks, 27 military talks, 47 economic talks and 18 humanitarian/ athletic talks