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Unification Minister Cho Myoung-gyon gives an opening address at a conference to discuss the role that SMEs can play in the “New Economic Map” vision for the Korean Peninsula being pursued by the Moon Jae-in administration at the headquarters of the Korea Federation of SMEs in Seoul’s Yeouido neighborhood on Mar. 14. (provided by K-Biz).

SMEs should be given a larger role in the Moon Jae-in administration’s initiative of a “New Economic Map” for the Korean Peninsula amid a mood of reconciliation with Pyongyang, many are increasingly arguing. Speaking at a panel discussion on the afternoon of Mar. 14 at the headquarters of the Korea Federation of SMEs (K-Biz) in Seoul’s Yeouido neighborhood, K-Biz chairman Park Sung-taek stressed the important role played by SMEs in past inter-Korean economic cooperation, suggesting that their “experience with inter-Korean economic cooperation over the past 26 years could be used to increase points of contact for inter-Korean exchange and contribute to building of the three ‘economic belts’ on the Korean Peninsula.”

The discussion on an “SME-centered Korean Peninsula New Economic Map” was co-organized with the Ministry of Unification, with support from the Presidential Committee on Northern Economic Cooperation.

“Accounting for over 90% of businesses at the Kaesong Industrial Complex and in the Mt. Keumgang tourism venture, SMEs have been the real actors in inter-Korean economic cooperation, yet they have often ended up neglected at the stage of envisioning new projects because of the huge amounts of capital channeled into economic cooperation,” Park said.

“A role for SMEs absolutely needs to be included in the Moon Jae-in administration’s vision for a new Korean Peninsula economic map,” he continued.

Unification Minister Cho Myoung-gyon suggested that inter-Korean economic cooperation, and Northeast Asian economic cooperation through it, stands to “provide SMEs with opportunities for greater growth and development.”

“We plan to hear opinions from SMEs as well while formulating a general plan for the New Economic Map initiative for the Korean Peninsula,” he said.

In a themed discussion presentation, Korea Small Business Institute research fellow Kim Sang-hoon noted that small-scale manufacturers are facing “continued decline to their working environment due to diminishing operation rates and increasingly small scales.”

“Since preliminary preparation-stage projects for full-scale implementation of the New Economic Map are likely to be pursued as smaller scales, SMEs need to serve as a key driving force for this vision,” he argued.

Kim went on to list nine examples of economic cooperation projects where SMEs could participate, including resumption of operations at the Kaesong Industrial Complex and the construction of a second complex; establishment of an inter-Korean technology education center in the DMZ; linkage efforts involving railways and highways in South and North Korea and Russia; and innovation clusters with South and North Korea, China, and Russia participating.

IBK Institute deputy director Cho Bong-hyun stressed that the new Korean Peninsula economic map “is not just an example of North Korea policy, but a future vision that will serve as a new turning point for continued advancements in the South and North Korean economies and establishment of peace in Northeast Asia.”

“An agreement on putting the new Korean Peninsula economic map into practice could be reached in conjunction with progress with North Korea’s denuclearization at the scheduled third inter-Korean summit,” he predicted.

At the same time, Cho stressed, “SMEs were the economic actors that made and shared history for the South and North Korean economies at the Kaesong Industrial Complex and elsewhere, and they need to be given the opportunity to take part actively from the preliminary preparation stages onward.”

K-Biz unification committee chairman Yoon Yeo-du called for active consideration of North Korea’s Sinuiju city in addition to previously mentioned candidate site at Rajin/Sonbong.

“Along with our efforts to resume operations at the Kaesong Complex as soon as possible, we should start discussions now on where to build a ‘second Kaesong,’” Yoon suggested.

By Park Soon-bin, senior staff writer

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