Tags: S.Korea | Urges | North | Implement | Agreements

S.Korea Urges North to Implement Agreements

Monday, 21 May 2001 12:00 AM

The two Koreas in November agreed on measures to avoid double taxation, settle cross-border payments, guarantee investments and resolve disputes, as part of efforts to boost economic cooperation under the agreement reached at the landmark summit last June.

Officials here expected the accords to put inter-Korean economic exchange on track. South Korean businesses have shunned major investments in the communist state, complaining of a lack of legal protection for investments.

The accords require both sides to protect the investment of companies doing business in each other's territory and open a direct route of financial transactions that will allow the businesses to pay at each other's banks, rather than using foreign banks.

Under the accords, the Koreas will grant each other Most Favored Nations status, allowing their businesses to operate freely across their border. They also agreed create a single currency, just like the euro in Europe, as the special means of payment to be used exclusively for inter-Korean trade settlement.

The economic accords require the two Koreas to set up a panel by June to settle trade disputes, but the North has not yet taken any move. In a letter sent through the border village of Panmunjom, South Korea called on the North to establish the panel in time, the unification ministry said at a meeting with South Korea's opposition leaders.

Lim also said the government was considering enacting laws aimed at boosting stalled inter-Korean reconciliation. Inter-Korea peace process came to a virtual standstill after U.S. President George W. Bush took a harder stance on North Korea and ruled out an early resumption of dialogue with the communist country.

North Korea has frozen contacts with the South and pulled out of planned reconciliation events. Earlier this month, North Korea stopped work on removing thousands of land mines, a process necessary to reconnect a railway line across the heavily fortified border with South Korea, also a key to last year's summit agreement.

-- Copyright 2001 by United Press International. All rights reserved. --

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The two Koreas in November agreed on measures to avoid double taxation, settle cross-border payments, guarantee investments and resolve disputes, as part of efforts to boost economic cooperation under the agreement reached at the landmark summit last June. Officials...
S.Korea,Urges,North,Implement,Agreements
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2001-00-21
Monday, 21 May 2001 12:00 AM
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