By Yi Whan-woo
South Korea is making a controversial approach toward its economic sanctions against North Korea in its steps to implement the Eurasia initiative, which inevitably requires Pyongyang's cooperation.
Under the government's supervision, POSCO, the country's largest steelmaker, will import Russian coal via North Korea this week as a part of its feasibility test for the "Rajin-Khasan project." Embarked on in 2008, Pyongyang and Moscow have been refurbishing a railway between the two areas.
Some 45,000 tons of bituminous coal produced from western Siberia will be transported from the Russian town of Khasan to the ice-free northeastern port of Rajin in North Korea along a 54-kilometer cross-border railway. By Saturday, a China-flagged vessel will ship the coal to Pohang, a port city in North Gyeongsang Province where POSCO's steel mills are located.
Such import will take place amid the government's stance that it will not lift the so-called May 24 measures despite calls for the improvement of frayed inter-Korean ties.
The punitive measures ban all inter-Korean trade and other cooperative efforts, except for those within the Gaesong Industrial Park (GIC). Seoul imposed them against the internationally-isolated state on May 24, 2010, in response to Pyongyang's sinking of the South Korean frigate Cheonan in March of that year.
The Ministry of Unification said Monday that the import of Russian coal via North Korea should be seen as "exceptional."
"The government is making an exception to its May 24 measures as it's geared toward carrying out Park's Eurasia initiative at the same time," unification ministry spokesman Lim Byeong-cheol said.
Unveiled in October 2013, the initiative aims at linking roads and railways for the construction of a multi-purpose logistics networks among Eurasian nations. In particular, it proposes the construction of a Trans-Siberian express railway that will start from Busan and extend to London via North Korea and Russia.
The "Rajin-Khasan project" is seen as an integral part to implement this initiative.
A 13-member South Korean delegation is on a five-day visit to Rajin to monitor the transport process of the coal. The members include one unification ministry official and 12 representatives from POSCO, Hyundai Merchant Marine and the Korea Railroad Corporation.
The three South Korean enterprises formed a consortium to take part in the "Rajin-Khasan project" by purchasing a share from the Russian side, which holds a 70-percent stake.
Lim said the deal this time does not "seriously violate" the May 24 measures because POSCO does not directly deal with North Korea.
According to Lim, POSCO will pay the import cost worth $4 million to a Russian coal mine developer, which will deliver the coal to Rajin. He refused to give name of the company.
Lim said the firm will pay port charges as well as partial fees for using the railroad to North Korea.
Yoo Ho-yeol, a North Korean studies professor at Korea University, said, "The Park government is taking a flexible approach toward the May 24 measures."
Yang Moo-jin, a professor at the University of North Korean Studies, agreed. However, he said the direct deal between the two Koreas is a violation of the May 24 measures.
"South Korea's participation in the ‘Rajin-Kassan project' can be controversial in several ways, especially if the two Koreas begin to deal with each other directly," he said.
South Korea is making a controversial approach toward its economic sanctions against North Korea in its steps to implement the Eurasia initiative, which inevitably requires Pyongyang's cooperation.
Under the government's supervision, POSCO, the country's largest steelmaker, will import Russian coal via North Korea this week as a part of its feasibility test for the "Rajin-Khasan project." Embarked on in 2008, Pyongyang and Moscow have been refurbishing a railway between the two areas.
Some 45,000 tons of bituminous coal produced from western Siberia will be transported from the Russian town of Khasan to the ice-free northeastern port of Rajin in North Korea along a 54-kilometer cross-border railway. By Saturday, a China-flagged vessel will ship the coal to Pohang, a port city in North Gyeongsang Province where POSCO's steel mills are located.
Such import will take place amid the government's stance that it will not lift the so-called May 24 measures despite calls for the improvement of frayed inter-Korean ties.
The punitive measures ban all inter-Korean trade and other cooperative efforts, except for those within the Gaesong Industrial Park (GIC). Seoul imposed them against the internationally-isolated state on May 24, 2010, in response to Pyongyang's sinking of the South Korean frigate Cheonan in March of that year.
The Ministry of Unification said Monday that the import of Russian coal via North Korea should be seen as "exceptional."
"The government is making an exception to its May 24 measures as it's geared toward carrying out Park's Eurasia initiative at the same time," unification ministry spokesman Lim Byeong-cheol said.
Unveiled in October 2013, the initiative aims at linking roads and railways for the construction of a multi-purpose logistics networks among Eurasian nations. In particular, it proposes the construction of a Trans-Siberian express railway that will start from Busan and extend to London via North Korea and Russia.
The "Rajin-Khasan project" is seen as an integral part to implement this initiative.
A 13-member South Korean delegation is on a five-day visit to Rajin to monitor the transport process of the coal. The members include one unification ministry official and 12 representatives from POSCO, Hyundai Merchant Marine and the Korea Railroad Corporation.
The three South Korean enterprises formed a consortium to take part in the "Rajin-Khasan project" by purchasing a share from the Russian side, which holds a 70-percent stake.
Lim said the deal this time does not "seriously violate" the May 24 measures because POSCO does not directly deal with North Korea.
According to Lim, POSCO will pay the import cost worth $4 million to a Russian coal mine developer, which will deliver the coal to Rajin. He refused to give name of the company.
Lim said the firm will pay port charges as well as partial fees for using the railroad to North Korea.
Yoo Ho-yeol, a North Korean studies professor at Korea University, said, "The Park government is taking a flexible approach toward the May 24 measures."
Yang Moo-jin, a professor at the University of North Korean Studies, agreed. However, he said the direct deal between the two Koreas is a violation of the May 24 measures.
"South Korea's participation in the ‘Rajin-Kassan project' can be controversial in several ways, especially if the two Koreas begin to deal with each other directly," he said.
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