By Jane Han
Staff Reporter
Upon completing three days and two nights on a Pyongyang show-and-tell trip Thursday, attention was directed to the returning CEOs on the likeliness of an unprecedented big-scale investment in the economically backward state: Is it a go or not?
Although positive words of possibilities were afloat, ``we'll see what happens'' _ as the Vice Chairman of Samsung Electronics Yun Jong-yong said _ was the prevailing answer among the top corporate heads.
Yun told reporters, while re-entering the South, that NK business is not done in a snap, but takes due time to make preparations for the future.
SK Chairman Chey Tae-won agreed, ``The trip left an impression, but investment details will require more time to be sorted out.''
Along the same lines were POSCO CEO Lee Ku-taek and LG Chairman Koo Bon-moo, as they cut questions on immediate investment short, by emphasizing the need for careful feasibility studies.
As their words reflect, when it comes down to bottom line, the decision-makers hinted leeriness.
``Of course it's a tough call to make. These are CEOs, not politicians _ if they don't see money from this, they won't dive in,'' said Lee Cheol-yong, a research fellow of the LG Economic Research Institute (LGERI), adding that unless the nuclear issue is cleared up and the international community gives the nod to inter-Korean business, projects are unlikely to begin.
While some critics suggested the government pressured the CEOs to get involved in inter-Korean cooperation, economic experts said this was not the case, noting that times have changed.
``They might have gone to Pyongyang with some degree of reluctance, but they won't be pushed into spending money on something that won't give returns,'' said Dong Yong-seung, a research fellow of Samsung Economic Research Institute (SERI).
The question is the term ``feasibility,'' said Dong, explaining that when companies typically speak of ``careful examination,'' many once-potential areas are dropped.
He said that especially for major conglomerates _ Samsung, LG and SK _ possible business areas are limited.
``Small- and medium-firms will probably benefit from the Gaeseong Industrial Complex, but even for them, the government must provide adequate financial backing for public infrastructure,'' Dong said. ``Or else, they cannot and probably will not spend money on risky projects.''
Although risks are high considering North's inadequate business conditions, Lee of LGERI said there will still be some, like Hyundai Group, who see a profitable future.
Hyundai Group Chairwoman Hyun Jeong-eun spoke positively of the Mt. Baekdu tour business, hinting that the details will fall into place as early as next April.
Hyundai Research Institute predicted Friday that an estimated $11.2 billion will be spent in overall North Korean economic investment, but the project will give a return of 10 times more, around $140 billion, which may be a green light for some iffy firms.
``It's about the timing and two-way cooperation,'' said Lee. ``If Kim Jong-il said tomorrow that all nuclear issues will be resolved, that might really speed things up.''
However, until then, as observers see it, a big question mark hangs over the realization of inter-Korean business collaboration.