Inter-Korean accords proposed<\/p>\n
SEOUL (AFP): South Korea proposed an accord on investment
\nguarantees in economic talks on Monday with North Korea on
\npromoting cooperation between the two sides.<\/p>\n
The proposal came in the opening session of two-day talks to
\nfollow up on the milestone reconciliation agreement signed
\nbetween the leaders of the two Koreas in June.<\/p>\n
The accord paved the way for the two Koreas, still technically
\nat war, to put their economic exchanges on track.<\/p>\n
But South Korean businesses have shunned any major investment
\nin the communist state, saying the two sides need legal
\nprotection for their investments.<\/p>\n
\"The June summit opened a new era of economic ties. But a lack
\nof legal systems has hampered investments from our side in the
\nNorth,\" the South's chief delegate Lee Keun-Kyung said in a
\nkeynote speech.<\/p>\n
Lee proposed the two sides sign four safeguard accords on
\ninvestment guarantees, the avoidance of double taxation, dispute
\nresolution and transaction settlement.<\/p>\n
\"First of all, two sides must work out a legal device to
\nprotect investments,\" Lee said.<\/p>\n
North Korea's stance was not disclosed but South Korean
\nofficials remained optimistic over the economic talks, which
\ncoincided with the first meeting of South and North Korean
\ndefense ministers on the southern island of Cheju.<\/p>\n
The North's three-member economic delegation was led by Jong
\nUn-Op, chairman of the National Economic Cooperation Federation.<\/p>\n
Inter-Korean trade amounted to US$333 million last year, with
\nSouth Korea exporting $212 million worth of goods mostly through
\nthird countries.<\/p>\n
At the end of July, South Korea's investments in the communist
\nstate stood at $15.4 million.<\/p>\n
The inter-Korean rapprochement, launched by the June summit,
\nwill create a new era of economic cooperation between the two
\nKoreas.<\/p>\n
In August, South Korea's Hyundai Group announced an ambitious
\nproject to build a giant industrial and tourism complex along the
\nNorth's southwest coast.<\/p>\n
Hyundai, which runs a tourism complex on the east coast, hopes
\nto follow a Chinese model for special economic zones for its new
\nproject in Kaesong near the border between the two Koreas.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/inter-korean-accords-proposed-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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