Roh likely to propose second industrial park during summit

Posted on : 2007-09-27 11:11 KST Modified on : 2019-10-19 20:29 KST
Three potential areas for new inter-Korean economic projects could involve links to Gaesong or Geumgang

South Korean President Roh Moo-hyun is likely to propose that North Korea build a second industrial park in the Haeju area of South Hwanghae province in the North during the second inter-Korean summit from October 2-4 in Pyongyang. If built, it would be the second such industrial zone after the Gaeseong Industrial Complex. The Haeju area includes the city of Haeju and the counties of Byeokseong, Gangnyung, Ongjin, Cheongdan, Yeonan and Baecheon.

According to government officials, including those in the presidential office of Cheong Wa Dae, or the Blue House, the government has already drawn up the plan to propose that North Korea build a “second special economic zone” as part of measures to strengthen inter-Korean economic cooperation projects during the summit. “The plan is in line with President Roh Moo-hyun’s concept of building an inter-Korean economic community that offers opportunities for investment for the South and opportunities for economic recovery for the North,” said a source at Cheong Wa Dae, asking not to be named.

On September 20, the government ordered state-run Korea Land Corp. Chief Executive Kim Jae-hyun to accompany Roh during the summit as part of this plan, people close to the matter say.

The South Korean government is believed to have listed three areas as candidates for a second industrial zone in North Korea. The areas were: Haeju, Najin-Seonbong and Wonsan, according to the sources.

The Haeju area was chosen due to its proximity with Seoul and the Gaeseong Industrial Complex as well as the possibility of easing military tensions in the West Sea, people close to the situation say. If a second industrial complex is built in Haeju, it could become a bridge linking Gaeseong with Nampo in a so-called “industrial belt for a peaceful economy in the West Sea.”

The Najin-Seonbong area was favorable during the government’s internal debates, given its location as the connection point between the Trans-Korean Railroad and Trans-Siberian Railroad, the location for a potential port development project with China and the source of a possible inflow of Japanese capital after thawing ties between Pyongyang and Tokyo. In the end, however, the area was categorized as a mid- and long-term project, according to the sources.

As for Wonsan, government officials were believed to have to conduct additional reviews in the future in spite of the area’s location for building a tourism belt linking the Mt. Geumgang tour program and a shipyard.

It is uncertain whether North Korea will accept the South Korean proposal because Haeju is the key port where crucial naval forces of the North Korean Navy are concentrated on. This may cause the leaders of two Koreas to discuss other locations during the summit. Another possibility is that Roh and Kim may agree on a broader roadmap for more industrial parks, or potential locations could be discussed at upcoming ministerial meetings or future talks.

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