[Editorial] Inter-Korean Economic Cooperation, Now for Actual Benefit

The Inter-Korean economic cooperation project driven by the domestic business since the inauguration of the Kim Dae-Jung administration seems to stagnate from the beginning. According to the report of the Ministry of Commerce, Industry and Energy, most of the10 Inter-Korean cooperation projects approved by the government except for the project that could not be judged by its business efficiency are on trouble with their management. With this situation, the balanced development of the both Koreas economy agreed at the 6.15 Joint Declaration will not be accomplished forever.

The most serious difficulties that the South`s business persons had suffered from are the interruptions of the business work by the rejection of stay in or visit to the North by the North government. The examples could list the Miheung Food that invested in kind of harvesting and processing of the maritime products, TaeYoung Maritime and LG that had invested 13,000 dollars for scallop cultivation farm, DaeWoo that has managed the Nampo Industrial Complex, Durae Agricultural Guild that had moved forward with the plans to operate joint farms in Najin Sunbong district and the contracted cultivation, among others. Taechang, which has invested 5.527 million dollars by July of this year, is also in trouble with the negotiation with the North that requested 100 dollars per a ton of Mt. Keumgang water drastically hiked from previous 3.5 dollars.

The Inter-Korean business by now has been driven by other motivation beyond the consideration on the profit and loss. However, it cannot be forever. By now, businesspersons have said that there is no one who made money from the North. The principle of reciprocity is the only way to systemize the Inter-Korean economic transaction in the long run.

If the North continue to refuse the visit of the South business persons and demand unreasonably high price rather than abandoning the various barricades interrupting the economic cooperation, the North Korean economy will end up entangled in its own net because the investment of the South will open the way for the foreign investors to the North.

The government must not stand back, insisting the principle of the separation of the politics and economics. The Ministry of Unification explained that over 150 firms are engaged in the processing on commission every year compared to the investment in the North. To protect the domestic companies in the North is the responsibility of the government.

The government must prepare appropriate support measures such as a guideline for the investment in the North and more useful information. In addition, the immediate implementation of the 4 Agreed Inter-Korean Economic Cooperation, which is not approved by both governments yet, is necessary.