S-N economic cooperation to speed up

At the inter-Korean ministerial talks, a follow-up effort to the historic June summit meeting, the major topics of discussion were economic cooperation and socio-cultural exchanges between the 2 Koreas. This has increased expectations that economic cooperation and exchanges on the Korean peninsula will be expedited.

Most important, the two sides plan to establish a systematic mechanism comprising an investment assurance agreement and a double taxation avoidance treaty, which the corporate sector has requested in order to expand North-South economic exchanges.

As these exchange concerns, which were previously addressed mainly by the private sector, were included in the minister level meetings, there are high expectations that economic cooperation efforts will expand once the legal and systematic aspects are resolved.

Large companies hoping to invest in North Korean SOC projects such as roads and industrial complexes, as well as SMEs that wish to enter the North Korean market, expect activity in North Korea to accelerate when a detailed economic cooperation blueprint is completed.

The power and energy field will be the first item on the agenda for economic cooperation. This is because North Korean industrial facilities are out of operation due to severe power shortages. In order to mitigate the North`s energy problems, antiquated power generating facilities will be restored, surplus power from the South will be supplied and distribution operations for coal and other energy sources will be modernized under a joint government and private effort.

Together with economic cooperation, socio-cultural exchanges will be stepped up through joint sports and athletics activities.

If the simultaneous entrance of North and South Korea is achieved at the Sydney Olympics, sports and athletics exchanges are expected to receive a welcome boost. This could lead to the creation of a joint team for the Asian Cup soccer competition in October, the revival of the Kyung-Pyung soccer games, a joint team competing at the Osaka World Table Tennis Championship in 2001, the joint hosting of the 2002 World Cup and a joint South-North team at the Pusan Asian Games in 2002.