President Kim warns against excessive competition in N.K. investments

President Kim Dae-Jung called for the establishment of a government-private consultative council on inter-Korean economic cooperation in order to prevent excessive competition for investments in inter-Korean projects, noting that the investments should be carried out in an orderly fashion through prior adjustments and coordination.

Presiding over the National Economic Advisory Council at Chong Wa Dae August 23, President Kim asserted that excessive competition among South Korean enterprises for investments in North Korea would not benefit the nation as a whole.

He stated that inter-Korean economic cooperation needs to be implemented in a manner beneficial to both South and North Korea and that though humanitarian aid should be continued, other one-sided assistance to the North should be withheld. Kim stressed that the proposed consultative council should work out institutional devices to this end, including the early conclusion of a mutual investment guarantee and a double taxation avoidance treaty.

Lee Ki-Ho, senior presidential secretary for economic affairs, told reporters that the consultative body will be established soon in order to map out comprehensive inter-Korean economic policies.

Choi Young-Mook ymook@donga.com