Industrial complex, Mount Geumgang tour project to resume
By Baek Byung-yeul, Joint Press Corps
SEOUL/PYONGYANG ― The Two Koreas agreed Wednesday to take steps this year to connect cross-border railways and roads in the name of "achieving balanced economic growth and co-prosperity."
Both sides also decided to resume halted inter-Korean projects, including the Gaeseong Industrial Complex and Mount Geumgang tours, when the appropriate conditions are met.
At a joint press conference at the Paekhwawon State Guesthouse in Pyongyang on day two of their summit, President Moon Jae-in and North Korean leader Kim Jong-un announced these and other projects to bolster inter-Korean economic cooperation.
"The South and the North agreed to explore practical measures aimed at increasing exchange and cooperation and seeking balanced development," a joint statement said. "The two sides have agreed to hold a ground-breaking ceremony this year for connecting railways and roads running along their eastern and western coasts."
The agreement is in line with the two leaders' first summit at Panmunjeom, April 27. They then agreed to adopt practical steps toward the connection and modernization of North Korea's railways and roads.
The two sides also agreed to discuss establishing joint economic and tourism zones along the Korean Peninsula's western and eastern coasts.
However, the economic cooperation projects are expected to face several obstacles because of strict international sanctions against North Korea for its nuclear and missile programs.
Experts said building cross-border railways is expected to create huge economic potential for the two Koreas.
John Hamre, president and CEO of the Center for Strategic & International Studies (CSIS), said intensifying railway systems will help South Korea connect to the world.
"Asia is integrating internally. South Korea is isolated from the world (geographically). We want Korea to be a leader in reconnecting Asia to the world," Hamre said during a conference co-organized by the Korea International Trade Association (KITA) and the CSIS in Seoul, Wednesday.
Following the agreements, Hyundai Group, which had been deeply involved in businesses in the North, is back in the spotlight.
Hyundai Group holds exclusive licenses for seven infrastructure projects in the North and the group is expected to resume them when sanctions are lifted.
Hyundai Asan, a Hyundai Group company, has the rights to develop the business complex at Gaeseong and tourism to Mount Geumgang and Gaeseong.
Hyundai ran a Mount Geumgang tour program from 1998 but it was halted in 2009 after a North Korean soldier shot dead a South Korean tourist who wandered into an off-limits area.
The Gaeseong Industrial Complex was closed down in February 2016 because of the North's nuclear and missile tests.
The group's business licenses range from the development of electricity and communications infrastructure to railway construction.
After President Moon's first summit with Kim, Hyundai Group formed a special taskforce to prepare for the possible resumption of business operations in the North.
Led by Group Chairwoman Hyun Jeong-eun, the team revised issues related to business operations there, including the resumption of tourism to Mount Geumgang and the operation of the Gaeseong Industrial Complex.
"This is welcoming news for us," a Hyundai Group official said. "We will prepare thoroughly in preparation for a possible resumption of business in the North, including not only Mount Geumgang tourism and operations at the Gaeseong Industrial Complex but also other infrastructure projects."
Meanwhile, business leaders, including Samsung Electronics Vice Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won, accompanying President Moon, visited Tree Nursery No. 112 of the North Korean People's Army located in Seoktan-ri, Songrim in North Hwanghae Province.
Cheong Wa Dae said the tree nursery was built in May, 2016 after Kim ordered the reconstruction of the nursery.
Given the forestry sector is less affected by the international sanctions on North Korea, industry watchers presume their visit was a signal that the forestry industry would be a priority project in economic cooperation between the two Koreas.
According to data from the Ministry of Unification, about 32 percent of North Korea's forests have been destroyed. This is the third worst deforestation among 180 countries worldwide.
By Baek Byung-yeul, Joint Press Corps
SEOUL/PYONGYANG ― The Two Koreas agreed Wednesday to take steps this year to connect cross-border railways and roads in the name of "achieving balanced economic growth and co-prosperity."
Both sides also decided to resume halted inter-Korean projects, including the Gaeseong Industrial Complex and Mount Geumgang tours, when the appropriate conditions are met.
At a joint press conference at the Paekhwawon State Guesthouse in Pyongyang on day two of their summit, President Moon Jae-in and North Korean leader Kim Jong-un announced these and other projects to bolster inter-Korean economic cooperation.
"The South and the North agreed to explore practical measures aimed at increasing exchange and cooperation and seeking balanced development," a joint statement said. "The two sides have agreed to hold a ground-breaking ceremony this year for connecting railways and roads running along their eastern and western coasts."
The agreement is in line with the two leaders' first summit at Panmunjeom, April 27. They then agreed to adopt practical steps toward the connection and modernization of North Korea's railways and roads.
The two sides also agreed to discuss establishing joint economic and tourism zones along the Korean Peninsula's western and eastern coasts.
However, the economic cooperation projects are expected to face several obstacles because of strict international sanctions against North Korea for its nuclear and missile programs.
Experts said building cross-border railways is expected to create huge economic potential for the two Koreas.
John Hamre, president and CEO of the Center for Strategic & International Studies (CSIS), said intensifying railway systems will help South Korea connect to the world.
"Asia is integrating internally. South Korea is isolated from the world (geographically). We want Korea to be a leader in reconnecting Asia to the world," Hamre said during a conference co-organized by the Korea International Trade Association (KITA) and the CSIS in Seoul, Wednesday.
Following the agreements, Hyundai Group, which had been deeply involved in businesses in the North, is back in the spotlight.
Hyundai Group holds exclusive licenses for seven infrastructure projects in the North and the group is expected to resume them when sanctions are lifted.
Hyundai Asan, a Hyundai Group company, has the rights to develop the business complex at Gaeseong and tourism to Mount Geumgang and Gaeseong.
Hyundai ran a Mount Geumgang tour program from 1998 but it was halted in 2009 after a North Korean soldier shot dead a South Korean tourist who wandered into an off-limits area.
The Gaeseong Industrial Complex was closed down in February 2016 because of the North's nuclear and missile tests.
The group's business licenses range from the development of electricity and communications infrastructure to railway construction.
After President Moon's first summit with Kim, Hyundai Group formed a special taskforce to prepare for the possible resumption of business operations in the North.
Led by Group Chairwoman Hyun Jeong-eun, the team revised issues related to business operations there, including the resumption of tourism to Mount Geumgang and the operation of the Gaeseong Industrial Complex.
"This is welcoming news for us," a Hyundai Group official said. "We will prepare thoroughly in preparation for a possible resumption of business in the North, including not only Mount Geumgang tourism and operations at the Gaeseong Industrial Complex but also other infrastructure projects."
Meanwhile, business leaders, including Samsung Electronics Vice Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won, accompanying President Moon, visited Tree Nursery No. 112 of the North Korean People's Army located in Seoktan-ri, Songrim in North Hwanghae Province.
Cheong Wa Dae said the tree nursery was built in May, 2016 after Kim ordered the reconstruction of the nursery.
Given the forestry sector is less affected by the international sanctions on North Korea, industry watchers presume their visit was a signal that the forestry industry would be a priority project in economic cooperation between the two Koreas.
According to data from the Ministry of Unification, about 32 percent of North Korea's forests have been destroyed. This is the third worst deforestation among 180 countries worldwide.
