Gov`t Reviews Aid to North Korea Haltering “Excessive Aid”

After President Roh Moo-hyun announced changes in policies on North Korea following the nuclear tests, the government launched into reviews on the appropriate extent in the budget concerning aid to the North.

Informal government sources have predicted that, considering the hostile mood of the South Koreans, humanitarian aid including rice and fertilizer will most likely be curtailed or reduced for the present.

The opposition party announced plans to drastically reduce the budget on North Korean aid during this year’s annual National Assembly budget review, and several local governments have halted aid to the North.

“Difficult to Continue Planned Aid to North Korea”-

A senior official of the Ministry of Planning and Budget stated on October 10, “(On the change in financial matters for aid to North Korea) Specific plans may change according to the level of North Korean sanctions made by the UN Security Council and the presidential plans, but it would be difficult to continue the budget program for North Korea which was drawn up before the nuclear test.”

Another government official said, “We are reviewing (the budget for aid to North Korea) by looking at different possible scenarios.”

The government initially set 1.716 trillion won for next year, approximately 300 billion won less than this year’s budget (1.3756 trillion won) for the “unification sector.”

But this was due to the reduction of 204.1 billion won in the South-North cooperation funds from the conclusion of the light water reactor project, and the aid level to the North of rice (500,000 tons), fertilizer (350,000 tons) was expected to be at the same level.

The aftermath of North Korea’s nuclear test may affect the budget from 2008 onward.

According to the “2006 to 2010 Budget Management Plan” set early this year by the South Korean government before the North’s nuclear test, aid to the North is briefly reduced next year but predicted for an increase from 2008.

Aid to North Korea in 2008 will increase 152 percent from next year to 2.702 trillion won, with an average increase of 28.6 percent every year until 2010.

But considering the South Korean public sentiment after the North’s nuclear test, the government is less likely to pursue its original plan.

Opposition Party, “Devoted to Reducing the Budget”-

The opposition party was firm on the North Korean aid issue.

GNP Chairman Kang Jae-sup stated in the conference involving the party leaders, “Indiscriminating aid to the North should be reduced drastically during the review of next year’s budget.”

GNP’s floor leader Kim Hyung-oh said, “Certain sectors continue to push for the Gaesong Industrial Complex project even after the nuclear tests, but the project that involves cash flows should be halted completely.”