Take cautious approach before denuclearization
Rapidly thawing inter-Korean ties are expected to provide momentum for economic cooperation between the capitalist South and the socialist North. Friday's successful summit between President Moon Jae-in and North Korean leader Kim Jong-un is heightening this expectation.
Of course, economic collaboration was not the central issue of the historic summit. The two leaders reached a landmark deal to attempt to formally end the Korean War, replace the armistice with a peace treaty, and settle a lasting peace on and ensure a complete denuclearization of the peninsula.
However, Moon and Kim did not miss the chance to agree on economic issues. This certainly reflected both sides' understanding that substantive progressive in South-North relations can be effectively made through promoting economic collaboration.
In this sense, it is worth noting that the two leaders agreed to connect two severed railroads between the South and the North. The first one is to re-link the South Korean capital Seoul and the North Korean city of Sinuiju bordering China. Another one is to restore the disconnected line along the east coast.
The inclusion of the railway issue in the declaration indicates the two sides want to restart cooperation in industry and business in case the international community eases or lifts U.S.-led sanctions against the North for its missile launches and nuclear tests.
The North in particular reportedly wants to work closely with the South in economic matters. This is even after Kim recently disclosed his intention to change his policy of developing a nuclear arsenal and the economy simultaneously. Kim plans to focus more on reviving his country's moribund economy after declaring that he had completed the nuclear program.
Kim must have begun to feel the pains of the sanctions. Without lifting North Koreans from poverty and raising their living standard, his regime may collapse _ not right now, but in the near future. This explains why Kim has offered an olive branch since the start of this year. He has also launched a diplomatic offensive not only toward Seoul, but also to Washington and Beijing, after it participated in the PyeongChang Winter Olympics in February.
Moon and Kim also agreed to push for development projects mentioned in a previous joint declaration adopted at the second inter-Korean summit between then-President Roh Moo-hyun and Kim Jong-un's father Kim Jong-il on Oct. 4, 2007. If such projects are implemented, it would certainly be a win-win strategy for both Koreas.
No doubt, active economic collaboration will provide new momentum for the South Korean economy which faces mounting challenges arising from dwindling domestic demand and growing trade protectionism in the U.S. It will also be a boon to North Korea which urgently needs help from the South for investment and industrial development.
Yet we should not make haste for or be too optimistic about such cooperation because it might weaken the international sanctions against the North before its complete denuclearization. Thus, the Moon administration needs to take a cautious approach in order to make sure Kim gives up his nuclear ambitions before seeking peace and economic co-prosperity on the peninsula.
Rapidly thawing inter-Korean ties are expected to provide momentum for economic cooperation between the capitalist South and the socialist North. Friday's successful summit between President Moon Jae-in and North Korean leader Kim Jong-un is heightening this expectation.
Of course, economic collaboration was not the central issue of the historic summit. The two leaders reached a landmark deal to attempt to formally end the Korean War, replace the armistice with a peace treaty, and settle a lasting peace on and ensure a complete denuclearization of the peninsula.
However, Moon and Kim did not miss the chance to agree on economic issues. This certainly reflected both sides' understanding that substantive progressive in South-North relations can be effectively made through promoting economic collaboration.
In this sense, it is worth noting that the two leaders agreed to connect two severed railroads between the South and the North. The first one is to re-link the South Korean capital Seoul and the North Korean city of Sinuiju bordering China. Another one is to restore the disconnected line along the east coast.
The inclusion of the railway issue in the declaration indicates the two sides want to restart cooperation in industry and business in case the international community eases or lifts U.S.-led sanctions against the North for its missile launches and nuclear tests.
The North in particular reportedly wants to work closely with the South in economic matters. This is even after Kim recently disclosed his intention to change his policy of developing a nuclear arsenal and the economy simultaneously. Kim plans to focus more on reviving his country's moribund economy after declaring that he had completed the nuclear program.
Kim must have begun to feel the pains of the sanctions. Without lifting North Koreans from poverty and raising their living standard, his regime may collapse _ not right now, but in the near future. This explains why Kim has offered an olive branch since the start of this year. He has also launched a diplomatic offensive not only toward Seoul, but also to Washington and Beijing, after it participated in the PyeongChang Winter Olympics in February.
Moon and Kim also agreed to push for development projects mentioned in a previous joint declaration adopted at the second inter-Korean summit between then-President Roh Moo-hyun and Kim Jong-un's father Kim Jong-il on Oct. 4, 2007. If such projects are implemented, it would certainly be a win-win strategy for both Koreas.
No doubt, active economic collaboration will provide new momentum for the South Korean economy which faces mounting challenges arising from dwindling domestic demand and growing trade protectionism in the U.S. It will also be a boon to North Korea which urgently needs help from the South for investment and industrial development.
Yet we should not make haste for or be too optimistic about such cooperation because it might weaken the international sanctions against the North before its complete denuclearization. Thus, the Moon administration needs to take a cautious approach in order to make sure Kim gives up his nuclear ambitions before seeking peace and economic co-prosperity on the peninsula.
![[INTERVIEW] Can art become stable investment source?](https://img.koreatimes.co.kr/upload/thumbnailV2/d9b4b117e5b74f4c931de724ebd2ee68.jpg/dims/resize/178/optimize)
![[INTERVIEW] Choi Min-sik, Lee Dong-hwi on creating Korean-style noir with 'Big Bet'](https://img.koreatimes.co.kr/upload/thumbnailV2/8b795a8f6b42492db4e8fdc47e9abd8d.jpg/dims/resize/178/optimize)
![[INTERVIEW] Ahn Jae-hong on playing underdog basketball coach in 'Rebound'](https://img.koreatimes.co.kr/upload/thumbnailV2/fe381342632c46bfa6d3245cb475676e.jpg/dims/resize/178/optimize)
