Inter-Korean economic talks focus on investment guarantee, double taxation

South and North Korea held a working-level meeting Monday to provide institutional mechanisms for inter-Korean economic exchanges and intensively discussed the conclusion of pacts to this effect. In particular, the two sides reached a broad agreement to adopt agreements on investment guarantees and the prevention of double taxation.

In a keynote speech, Seoul's chief delegate, Deputy Finance-Economy Minister Lee Keun-Kyong, said that the ongoing working-level economic talks are aimed at providing institutional devices such as investment guarantees, avoidance of double taxation and settlement of disputes. To this end, the minister put forward a four-point draft agreement to be adopted at the current talks. On the other hand, North Korean chief delegate Jong Un-Op, chairman of the National Economic Cooperation Federation, presented a two-point counter draft agreement on investment guarantees and double taxation avoidance that excepted the other two items.

During the two rounds of talks held in the morning and afternoon, the two sides came closer to the draft provisions for the two sectors and agreed to adopt accords. To this end, they decided to continue discussions on detailed matters. In a press briefing after the morning session, South Korean chief delegate Lee said that the two sides would hold intensive talks on investment guarantee and taxation issues first and then deal with the remaining two areas of settling disputes and liquidation. Noting that for the adoption of a pact, both sides are required to fully understand the statements and contents of the provisions, Lee said that it would be difficult in the ongoing negotiations to reach a complete agreement on only one of the four sectors. Therefore, he added, the working-level negotiations will have to be held one or two more times.

The two sides are scheduled to hold a second-day session Tuesday morning and will announce the outcome of the present negotiations in the form of a joint press statement. The ongoing talks are attended by three delegates from each side