pyongyang NK-US Ties Crucial for Northern Economy
By Jung Sung-ki
Staff Reporter
Unification Minister Lee Jae-joung said South Korea will seek to expand inter-Korean economic cooperation through a package of investment plans to help rebuild North Korea's economy.
In an exclusive interview with The Korea Times on Friday, Lee, 63, said the leaders of the two Koreas will exchange their views on Seoul's potential investment programs, and related business environment and conditions in North Korea during the landmark 2007 South-North Korea Summit beginning Tuesday in Pyongyang.
``The principle of our plans to expand inter-Korean economic cooperation is in developing the current cross-border projects based on mutual cooperation and support into ones aimed at helping develop the North's economy through investments,'' Lee said. ``Instead of offering specific proposals, however, we will focus on ways of creating the business environment and systems for our comprehensive investment plans.''
Lee declined to elaborate on planned proposals.
The minister said South Korean business representatives accompanying President Roh Moo-hyun during the summit will also consult with North Korean counterparts on potential joint business projects.
``Personally, I believe the two sides are able to agree on principles regarding the South's social overhead capital investment into cross-border railway programs and other investment programs during the summit and later materialize the agreements in inter-Korean economic talks,'' said the minister. ``How much the investment plans will be materialized hinges on North Korea's position.''
Lee, however, stressed that improvement of ties between the United States and North Korea is a prerequisite to the success of South Korea's potential big-budget programs for the North.
``Without the normalization of the U.S.-North Korea ties, such as the abolishment of a U.S. law banning trade with North Korea and the North's removal from a U.S. list naming states who sponsor terrorism, inter-Korean economic cooperation programs will face difficulties,'' he said.
Pyongyang was put on the list in 1988 after its agents blew up a South Korean passenger plane, killing all 115 people aboard.
In recent weeks, South Korea's potential investment plans, often dubbed a ``Marshall Plan'' for North Korea, have been unveiled.
Baek Jong-chun, chief presidential secretary for security affairs and foreign policy, said last week that during the summit talks, President Roh would likely to propose the creation a second inter-Korean industrial facility in North Korea, similar to the Gaeseong Industrial Complex, as a step toward building a common economic bloc on the Korean Peninsula. Haeju and Nampo are among the candidate sites, he said.
Other possible proposals include the renovation of the 170-kilometer Pyongyang-Gaeseong highway and the launch of additional South Korean-backed tourism projects modeled on the Mount Geumgamg tourism program operated by Hyundai Asan, a business arm of the giant Hyundai Group in the South.
Some local reports said the state-run Korea Land Corporation plans to develop six North Korean cities into key industrial, logistics and tourism hubs with the investment of more than $11 billion.
Stepping Stone for Peace Regime
Minister Lee expressed high hope that the summit meeting will serve as a catalyst for creating a peace regime on the peninsula, formally ending the 1950-53 Korean War, which ended with a truce, not a permanent peace treaty.
In a major step toward achieving lasting peace on the peninsula, President Roh and North Korean leader Kim Jong-il can discuss disarming the Demilitarized Zone (DMZ) and turning it into a ``peace zone'' to reduce cross-border military tensions and promote peace, Lee said.
The 248-kilometer-long, 4 kilometer-wide DMZ that divides the peninsula is a symbol of the Cold War. There are about 380 guard posts along the world's most heavily fortified border.
Lee also said the two leaders are expected to reach a consensus on creating concrete measures to reduce tensions near the Northern Limit Line (NLL) in the West Sea.
Turning the western maritime border into a buffer zone and creating joint fishing areas near the sea borderline are options on the table, he said.
The NLL, drawn up by the United Nations Command at the end of the 1950-53 Korean War, has served as the de facto inter-Korean sea borderline. The North demands the line be nullified and redrawn.
``It is desirable that South and North Korea should take the initiative in settling peace on the Korean Peninsula based on consensus from neighboring countries,'' the minister said. ``In that context, this summit is so timely and expected to become a critical turning point for increasing the two Koreas' future role for peace and prosperity on the peninsula.''
Lee was confident that the Roh-Kim summit will help make progress at the six-party talks over North Korea's nuclear weapons program, citing ``timely environment and conditions'' for the historic summit.
``Looking back on the past 100 years, I believe there has been no greater situation around the peninsula and relations with neighboring countries than now,'' Lee said. ``That's why I'm saying this summit is important and should be successful.''
Arirang Performance
Lee dismissed criticism over Roh's decision to watch North Korea's pro-communist mass gymnastic show, ``Arirang,'' during his stay in Pyongyang, saying the South Korean president's attendance at the show could help ``build mutual trust.''
``Mutual respect and trust are the key to the success of the summit,'' he continued. ``A lot of South Koreans and foreign visitors have already watched the show, but they have not been criticized or punished legally. That means the Arirang performance is already socially acceptable.''
Lee said North Korea is expected to offer the South Korean entourage a performance that highlights the North's intention for peace, not one with provocative messages.
He said he had been told that the North was preparing a gorgeous card section show depicting a cross-border train running from South Korea's southern port city of Busan to the North Korean city of Sinuiju.
The Arirang show is famed for vibrant colored-card section display and highly regimented group acrobatics performed by thousands of performers, mostly young children.
The performance is aimed at praising the North Korean leadership and the regime's military-first policy. In the 2005 event, the show featured performances praising the regime's first-ever nuclear test.
In addition, the propaganda show has often been under criticism over an alleged human rights abuse.
Tens of thousands of children are reportedly forced to practice for several months in preparation for the mass gymnastics.