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Figures reveal impact of missile test on inter-Korean exchanges
SEOUL, March 13 (Yonhap) -- Inter-Korean economic cooperation and social exchanges have been almost entirely cut off since North Korea test-fired a long range missile in spring last year, government figures showed Saturday.
An official from the Ministry of Unification said no new economic ventures have been started with the exception of business operations taking place at the Kaesong Industrial Complex just north of the Demilitarized Zone, which divides the two Koreas.
"The last new venture was approved on March 12 of last year," he said.
Before the April missile test took place, the ministry, which is in charge of inter-Korean policy, approved 10 deals in 2005, four in 2006, six in 2007 and nine in 2008.
There were a few companies that wanted to start new business tie-ups after the test, but they opted not to follow up after they were informed that Seoul would not approve new deals, the official said.
South Korea's conservative Lee Myung-bak administration, which was inaugurated in early 2008, has maintained a tough stance on North Korea, demanding a resolution to Pyongyang's nuclear ambitions before cross-border cooperation can be expanded. It has allowed humanitarian aid to be shipped to the North by non-government groups, but drastically cut direct state aid.
The Kaesong industrial park, however, has continued to grow. The ministry official said Seoul approved 22 new business startups in Kaesong last year. The complex is considered the crowning achievement of inter-Korean cooperative ventures that permit South Korean companies to make products using North Korean labor.
The official also said that all social and cultural exchanges have stopped under the Lee administration. "The last social exchange was approved on Jan. 8, 2008," he said.
In 2005, 47 cross-border programs were approved, with 26 and 19 taking place in 2006 and 2007, respectively. Only three social and cultural exchange programs took place in early 2008.
yonngong@yna.co.kr
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