hankyoreh

President Roh Moo-hyun said Tuesday that the formation of a unified economic zone will be the eventual goal of his summit with North Korean leader Kim Jong-il slated for Aug. 28-30 in Pyongyang.

"Preparations for a unified economic zone, as well as the formation of a common economic bloc, on the Korean Peninsula will be the most important factors for inter-Korean peace," Roh was quoted by his spokesman Cheon Ho-seon as saying at a Cabinet meeting.

"The government is well aware of public concerns that the North Korean nuclear weapons issue and inter-Korean peace should not be neglected," he said. "But mutual interdependence in economy is the most critical factor to guaranteeing peace on the Korean Peninsula."

Analysts forecast Roh will propose significantly expanding inter-Korean economic cooperation during the upcoming summit talks, while Roh's office, Cheong Wa Dae, has already indicated that the summit is expected to intensively tackle measures to upgrade cross-border economic cooperation and exchanges in both quality and quantity.

In this regard, former Prime Minister Lee Hae-chan, a key political ally of Roh, said that the two Korean leaders may reach an agreement on large-scale economic cooperation projects aimed at creating an economic boom in North Korea.

"North Korea has expressed a wish to build new industrial complexes across the country, including in Nampo, Wonsan, Sinuiju and Rajin. The North also wants to start new sightseeing businesses for South Korean tourists at its other scenic mountains, like Mount Paektu, Myohyang and Kuwol," Lee said at a recent regional peace forum.

He also said that massive construction of social and industrial infrastructure in North Korea would serve as a locomotive for the growth of the North's economy. SEOUL, Aug. 14 (Yonhap News)