Korea and Japan will sign `Treaty of Korea-Japan investment` that will promote direct investment between the two countries enterprises when, Koizumi Chuniziro, Japan Prime minister, visits Korea on 21st , Tokyo newspaper reported on 7th .
The newspaper delivered, quoting the word of official in ministry of Foreign affairs in Japan that this treaty will come into effect from this year after approval from National Assemblies of each country.
This treaty contains `native treatment`, which means treating opposite country`s enterprises like domestic enterprises and `most favored-nation treatment`, which means not treating opposite countries enterprises unfavorably than the third country except both countries, starting from the step of allowing investment.
If Japan signs on this treaty, it becomes second country following Singapore in January.
Korea-Japan, two countries decided to make investment treaty, when Obuchi Geizo, former prime minister visited Korea in march 1999,and agreed on basic treaty in last December, having started negotiation from last September.