South, North businesses set to open private channel for economic projects

Posted on : 2007-09-28 09:58 KST Modified on : 2019-10-19 20:29 KST
First private organization for inter-Korean business proposes to handle investment information and trade

A South Korean business organization is trying to open a private channel for inter-Korean economic cooperation, in partnership with a similar organization from North Korea.

The Korea Chamber of Commerce and Industry said on September 27 that it is pushing to form the “South-North Economic Cooperation Forum,” which would allow South Korean companies to exchange investment information on North Korea and work as a bridge for inter-Korean trade and cooperation. North Korea’s potential partner is the Chosun Conference of Commerce.

If formed, the channel would be the first private organization designated to handle inter-Korean business projects. Currently, economic cooperation projects between the two Koreas are coordinated by the South’s Ministry of Unification and the North’s National Economic Cooperation Federation.

With some 50 members from companies, regional chambers of commerce and public institutions, the private channel for inter-Korean economic cooperation is likely to be launched by the end of next month, according to KCCI. The chief of KCCI will head the private organization and its office will be housed at the KCCI building in Seoul.

Though South Korean companies expect inter-Korean business projects to gather momentum in the wake of next week’s summit between President Roh Moo-hyun and North Korean leader Kim Jong-il, no private channel has been set up to resolve potential difficulties. So, KCCI submitted a proposal to the government on September 11 to form a private channel with the North’s Chosun Conference of Commerce.

“During the summit, the business delegation will deliver the proposal to North Korean side,” said Lee Kyung-sang, head of the corporate policy team at KCCI. “If the North’s response is positive, working-level officials will visit North Korea to discuss the details.”

KCCI plans to sign a preliminary deal with the Chosun Conference of Commerce and launch a wide range of inter-Korean economic projects.

The Chosun Conference of Commerce became a member of the International Chamber of Commerce in 2000. Last year, the North Korean business organization held an investor relations session in Italy and signed an agreement for economic exchange with a Chinese committee for international trade.

Please direct questions or comments to [englishhani@hani.co.kr]

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