Following the 2010 deadly sinking of the frigate Cheonan off the country's west coast, South Korea slapped a package of economic penalties known as the May 24 Sanctions on Pyongyang. The measures remain a major hindrance for advancing inter-Korean dialogue.
The retaliatory steps for sinking the ship are stirring debate among politicians ahead of the fifth anniversary of the Cheonan incident. Even within the ruling Saenuri Party, key members are divided over their removal.
"There are talks of lifting the measures altogether despite the North's complete denial of responsibility for the attack," Saenuri Party floor leader Rep. Yoo Seong-min said during a meeting of senior leaders Monday. "Thinking back to the deadly attack five years ago, there is no way we can lift the sanctions as if nothing happened."
The May 24 measures ban all trading and commercial activities between the two sides except at the Gaeseong Industrial Complex, and restricting additional business projects with the North.
Lee In-je, a member of the Supreme Council of the Saenuri Party, took a more lenient stance. "I believe that at the time of the warship attack, the urgency of the situation did call for stern actions from our government," the six-term lawmaker said. "But it was not a wise decision. To realize unification, we need to implement new policies with a generous spirit. It is foolish to limit human and economic ties with the North." Saenuri Party Chairman Rep. Kim Moo-sung called for a cautious approach.
Before resuming dialogue with South Korea, Pyongyang is adamant about the removal of the economic ban. Pyongyang rejected Tuesday the nation's call for an apology for the sinking of the Cheonan that killed 46 sailors.
In a statement, the National Defense Commission once again denied responsibility for the incident and slammed the South for masterminding the Cheonan sinking to nullify the inter-Korean summit deals of 2000 and 2007.
"If the South truly wants to improve inter-Korean relations, they are urged to first lift the May 24 measures," the statement said.
The commission also called for a reinvestigation into the Cheonan sinking. An international investigation team found the North Korean torpedo sank the ship, but Pyongyang has persistently denied any involvement.
Park's dilemma
As the two Koreas still remain divided about the Cheonan's sinking, President Park Geun-hye is facing a dilemma over the economic retaliation imposed on North Korea by her predecessor Lee Myung-bak five years ago.
From the beginning of her presidency, she has given strong indication that she will work toward unification, defining it a "bonanza" for the future of the two countries. During a visit to Germany in March 2014, she proclaimed the so-called "Dresden Initiative," a vision for bringing unification closer through transferring South Korea's knowhow in economic development to North Korea via inter-Korean economic cooperation and increasing humanitarian aid. None of this has been able to come to fruition because of the May 24 measures.
There are also questions about the effect of the sanctions in isolating North Korea.
Although the measures prohibit additional business projects with the North, there have been exceptions such as South Korean companies' participation in the Najin-Hasan Project, a collaborative logistics project between North Korea and Russia.
The South has been putting more pressure on the North ahead of the fifth anniversary of the March 26 incident. "They can only be lifted when Pyongyang takes steps that the public here can accept," Unification Minister Hong Yong-pyo said during a confirmation hearing on March 11 at the National Assembly.