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| Economic cooperation with Russia is likely to start in railways, pipelines and electricity grids. Screen capture from The Presidential Committee on Northern Economic Cooperation |
By Yoon Ja-young
As President Moon Jae-in began his four-day trip to Russia Thursday, expectations are heightening over trilateral economic cooperation plans linking the two Koreas with Russia. They are likely to start in sectors such as railways, pipelines and electricity grids.
"When the peaceful mood settles in the Korean Peninsula, North Korea can join in cooperation between South Korea and Russia. This will greatly help their economy and development," President Moon said in an interview with the Russian media Wednesday before leaving for Russia.
The administration has eyes on cooperation with Eurasian countries including Russia, launching the Presidential Committee on Northern Economic Cooperation last December.
It is expected to come up with a more detailed roadmap amid thawing inter-Korean relations. Should North Korea denuclearize and international sanctions are lifted, economic cooperation involving the two Koreas as well as neighboring countries such as Russia and China will be possible in diverse sectors such as logistics, energy and special economic zone development.
Korea in particular has expectations for connected railways. During the historic summit between President Moon and North Korea's leader Kim Jong-un in April, the two Koreas agreed to link railways. When they are further connected to the Trans-Siberian Railway, both cost and time will be greatly reduced as freight will reach even Europe by rail.
For its part, Russia also has much interest in pipeline construction. By building pipelines penetrating the North to reach the South, which is the world's second largest importer of liquefied natural gas (LNG), a huge market will open for Russia which has abundant natural gas. It can even target the Japanese market by building undersea pipelines.
There also is a plan to supply electricity produced in Russia's hydroelectric power generators to East Asia through Super Grid, on top of building an "energy ring" to include renewable energy produced in Mongolia and China.
President Moon had unveiled the "Nine Bridge" plan at the Eastern Economic Forum held in Russia last September, which aims at bolstering economic cooperation between the two countries in nine sectors of gas, railways, harbors, electricity, arctic shipping, shipbuilding, jobs, agriculture and fisheries.
By opening a new arctic shipping route, for instance, shippers can curtail the Asia-Europe route by 7,000 kilometers from the current route which goes through the Suez Canal. Korea expects to regain its status as a shipping powerhouse while Russia can open new opportunities for the development of natural gas and resources.
Russia is also supportive of Korean firms investing there. The business environment is notably improving in Russia. It rose to 40th in terms of business environment assessed by the World Bank in 2017, which compares with 112th in 2013.
Experts also expect cooperation will further bolster peace on the Korean Peninsula and throughout Northeast Asia, on top of providing new growth engines through diversification of markets.
"Economic cooperation with Eurasian countries will help ease tension in Northeast Asia and lead to joint prosperity," said Song Young-gil, chairman of the committee.
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