Budget for S-North Projects to Get Parliamentary Approval
By Yoon Ja-young
Staff Reporter
The government said it will receive parliamentary approval for funds it will raise for the South and North Korean economic cooperation projects.
Vice Finance and Economy Minister Lim Young-rok also said the inter-Korean economic cooperation plan will be set up within the capability of the current government financing. ``Most projects agreed to in the summit can be done in a commercial way by the private sector, like the special economic zone or the joint shipbuilding cooperation complex,'' Lim said. ``The government's role is limited to supporting the construction of various infrastructures,'' Lim said.
His remarks come as some private research institutes estimate that the summit agreement to push for projects, to help boost the communist nation's economy, will cost South Korea between 10 and 60 trillion won.
Lim played down such concerns.
``I don't think we will have to spend much of our fiscal budget for the projects,'' he said. ``There will be some projects that need fiscal support, but it will not be big.''
Lim said that the government has yet to discuss various projects with various other related ministries and agencies. ``We have yet to tally exact amount. We will receive parliamentary approval for any budget spending and we will carry though within the extent where our budget can withstand.''
He said the joint use of the Han River estuary will mitigate military tension, on top of easing the construction material shortage around Seoul, supplying sand worth $2.8 billion.
Separately, Minister of Planning and Budget Chang Byoungwan said that the inter-Korean economic projects will not load any substantial burden on taxpayers.
``We can't be accurate for now about the amount of financing needed after the summit. It will be decided only when the project comes in a concrete plan at the Joint Committee for Inter-Korean Economic Cooperation or at the prime ministerial talks,'' Chang said.
The minister emphasized that there won't be an additional tax burden, as 910 billion won for the inter-Korean economic cooperation is included in the budget for next year, on top of the 430 billion won reserve.
``This can cope with the additional expense next year.'' The ministry, hence, isn't considering an object tax for the project. ``Bond issuing could be considered as a means for additional funding, depending on the size and progress of the projects, but we will try to make it settled within the current budget,'' Chang said.
While there are differing estimations on how much the North Korea project would cost, the main opposition Grand National Party has been trying to run down Roh's accomplishment in the summit, saying at least 30 trillion won will be needed in the one-way giving. The Hyundai Research Institute, meanwhile, estimated the cost at around 10 trillion won.