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Inter-Korean Exchanges and Cooperation

Following national division, the two halves of the peninsula became increasingly heterogeneous. Consequently, the South Korean Government has strived to rebuild a national community through inter-Korean exchanges and cooperation rather than rushing to achieve unification. 

Gaeseong Industrial Complex

North Korean workers at the Gaeseong Industrial Complex
North Korean workers at the Gaeseong Industrial Complex
The Gaeseong Industrial Complex is an inter-Korean economic cooperative project developed and pursued by the two Koreas near the North Korean city Gaeseong in North Korea's North Hwanghae Province just across the Demilitarized Zone. By an agreement between Hyundai Asan and North Korea, construction began on the site in June 30, 2003, after official inter-Korean consultations. The complex began operation in earnest in late December 2007, when the first phase of development and a lottery for lots were completed.

The Gaeseong Industrial Complex primarily brings the South's capital and technology together with the North's labor and land for mutual gain. The complex is transforming an area of confrontation and tension into one of reconciliation and peace. The Gyeongui Road carries around 600 vehicles and 1,000 South Korean staff and supplies across the Demilitarized Zone daily to feed the needs of existing enterprises and help prepare the industrial zone for newly arriving businesses. As of the end of December 2007, 65 companies are operating in the complex. Throughout that year, they produced $184.78 million dollars worth of goods ― nearly $40 million from exports. Since the GIC's cumulative production value from 2005 was $273.7 million, 2007 clearly saw a marked increase in output.

The Government will make consistent efforts ― based on agreements reached by the two Koreas ― to consult closely with the North Korean authorities and the firms and to monitor developments, so that companies can invest and continue to do business in the complex.

Reconnecting the Inter-Korean Railroad

In 2007, the two Koreas began daily cargo rail service between Munsan, South Korea, and Bongdong, North Korea.
In 2007, the two Koreas began daily cargo rail service between Munsan, South Korea, and Bongdong, North Korea.
On Feb. 19, 1992, the two Koreas agreed through the North-South Basic Agreement to reconnect their severed rail links. A decade later on Sept. 18, 2002, groundbreaking to reconnect rail and road systems on both coasts ― the Gyeongui Line and Road on the west coast and Donghae (East Coast) Line and Road on the other ― took place simultaneously. The roads were completed in October 2004 and have been in use since Dec. 1 that year. The two Koreas agreed for a trial run of the rail systems on May 11, 2006. On May 17, 2007, for the first time since the division 56 years ago, trains traveled through the Demilitarized Zone on both the Gyeongui and Donghae railways.

From Dec. 11, 2007, daily freight-train service between the South's Munsan and the North's Bongdong stations began. The linking of inter-Korean railways and roads is advantageous on many levels. Not only does it greatly reduce logistics costs, but it helps diminish inter-Korean tension, speed up development of the Gaeseong Industrial Complex and promote overland tourism to the North's Mt. Geumgangsan Resort. In the future, these railways will link to trans-Siberian or trans-China railways and roads, cementing South Korea's position as a logistics hub for Northeast Asia.

Socio-Cultural Exchanges and Cooperation

Kim Soon-kwon (Dr. Corn): As head of the International Corn Foundation (ICF), Dr. Kim oversaw the development of Super Corn, a cereal engineered to provide bigger yields. In 1998, the ICF transferred super corn seeds to North Korea and began working with their researchers to find new ways to help alleviate chronic food shortages there.
Kim Soon-kwon (Dr. Corn): As head of the International Corn Foundation (ICF), Dr. Kim oversaw the development of Super Corn, a cereal engineered to provide bigger yields. In 1998, the ICF transferred super corn seeds to North Korea and began working with their researchers to find new ways to help alleviate chronic food shortages there.
Cooperative projects in social and cultural fields have greatly increased since the June 15, 2000, Joint Declaration. At the end of 2007, there were 498 cases involving 12,700 people engaged in inter-Korean socio-cultural exchanges, a 15-fold jump over pre-1999 years.

Socio-cultural exchanges in the civil sector are significant in that they contribute to inter-Korean dialogue and accelerate inter-Korean relations  overall. To date, civilian-level exchanges have organized regular festivities to mark the June 15 anniversary of the 2000 inter-Korean summit and Liberation Day (Aug. 15), arranged the return to North Korea of a 16th-century Joseon monument taken by imperial Japan during the occupation, and begun work on a joint Korean dictionary. These and other projects aim to restore the oneness of the Korean people. The Government continues to invite North Korean artists to visit, so South Koreans can gain a better understanding of North Korean culture through their creativity and talent. Other efforts to narrow the differences between the two Korean cultures are ongoing: In the sports arena, officials are working to replace one-time events with regular sporting games that can strengthen cooperation between the two Koreas. In the international field, the two Koreas are considering sending a joint cheering squad to the 2008 Beijing Olympics via the inter-Korean Gyeongui Railway.

Reunion of Separated Korean families

Once-divided relatives from the South and North meet at an official family reunion.
Once-divided relatives from the South and North meet at an official family reunion.
Reunion of separated families is an important and pressing issue for the Government that must be solved in consideration of th universal desire to interact with relatives. The two Koreas should assiduously abide by the agreement that came at the 9th Inter-Korean Red Cross Talks held in November 2007. (The agreement calls for 400 people to be able to reunite face-to-face every year, 100 would meet in a special reunion, 160 families would reunite via screen and 120 families exchange visual correspondence.) The Government aims to give priority to this humanitarian issue and more aggressively consult with North Korea, so that, when the reunion center at Mt. Geumgang is completed as expected in July 2008, reunions can occur on a prompt and regular basis.

 
 

  General Information of Korea  
   Historical Background
When the Second World War ended with Japan's defeat, all Koreans aspired for a unified independent nation but instead suffered national division resulting from the subsequent Cold War between East and West. The national division and establishment of separate governments in the South and the North eventually led to a civil war, the Korean War (1950-1953). The Korean War was a by-product of internal ideological conflicts and was viewed by many as a …
   North Korean Nuclear Issue
The South Korean Government has designated making a breakthrough in the North Korean nuclear issue through the Six-Party Talks ― involving the Koreas, the United States, China, Russia and Japan ― as the core task of its security policy. It is pursuing advancements in inter-Korean relations as a catalyst for the resolution of the nuclear issue. Envoys from six nations pose for a group photo during their North Korean nuc…
   Inter-Korean Exchanges and Cooperation
Following national division, the two halves of the peninsula became increasingly heterogeneous. Consequently, the South Korean Government has strived to rebuild a national community through inter-Korean exchanges and cooperation rather than rushing to achieve unification. Gaeseong Industrial Complex North Korean workers at the Gaeseong Industrial Complex The Gaeseong Industrial Complex is an inter-Korean economic cooperative projec…
   Future Policy Directions

Based on the progress in inter-Korean relations made so far, the Lee Myung-bak Administration will focus on the successful resolution of the North Korean nuclear issue and establishment of a lasting peace. Resolving the North Korean nuclear issue is crucial to peace on the Korean Peninsula. It is a critical link in the progress toward peace and economic development. For economic exchanges and cooperation between the two Koreas to advance, peace must be wrought, and in turn, economic cooperation will advance the establishment of peace. Peace on the Korean Peninsula has rested on a cease…

   International Relations
Since its founding in 1948, the Republic of Korea has been committed to the concepts of democracy and a free-market economy, but its foreign relations have undergone significant changes since its founding. As U.S.-USSR relations divided much of the world into two antagonistic blocs following World War II, the Republic of Korea pursued its foreign relations in concert with the democratic nations of the West. In the years following the Korean War, the in…
   Economic Exchanges
In the wake of the Cold War, a distinct trend toward regionalism emerged. Countries like the Republic of Korea, which have pursued export-led growth, found themselves facing a different international economic environment than in the past. Korea's export growth mostly depended on trade with advanced countries ― the United States, Japan and the European Union. This has often caused friction over trade imbalances. Wit…
   International Peace and Cooperation
The Republic of Korea joined the United Nations in September 1991, expanding its active participation in multilateral diplomacy in tandem with its elevated global standing economically. Even before joining the UN, however, the Republic of Korea was active in such specialized UN agencies as the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (IBRD), the United Nations Industrial Development Organization (UNID…
   Future Policy Directions
The Republic of Korea will take a more positive stance with a greater vision and carry out global diplomacy in active cooperation with the international community. Transcending the differences in race, religion, and wealth, Korea will befriend all nations and peoples. Respecting the universal principles of democracy and market economics, we will take part in the global movement for peace and development. The Government will work to develop and f…
   Economic Growth
Korea rapidly recovered from the economic storm that began in late 1997. This crisis, which roiled markets all across Asia, had threatened Korea's remarkable economic achievements. However, thanks to the faithful implementation of an IMF agreement, the Korean Government's strong resolve for reform, and successful negotiation of foreign debt restructuring with creditor banks, the nation rebounded and is now stronger than ever economically. Sin…
   Industrial Innovation
As the world's 13th largest economy, Korea has emerged as a success story in many ways. In 2007, Korea's trade volume amounted to US$728 billion, ranking 11th in the world. Korea also has the fourth largest foreign reserves. Despite high oil prices, the strong won and rising raw material prices, the Korean economy is growing at a healthy pace. Hyundai Motor SUVs waiting for shipping in the nation's southeastern port Ulsan S…
   Science and Technology
To reinvigorate the development of advanced science and technology, the Government established the Korea Institute of Science and Technology (KIST) and the Ministry of Science and Technology (MOST) in 1966 and 1967, respectively. Initially, Korea's national science and technology policies focused mainly on the introduction, absorption, and application of foreign technologies. In the 1980s, however, the emphasis shifted to the planning and cond…
   Information Telecommunication
Korea's stance as a powerhouse in terms of information technology is demonstrated by its vast IT-related production and exports, development of world-leading technology, and also the wide use of Internet and mobile telecommunication devices within the country. IT industry-related products, such as computer chips and mobile phones, account for over 30% of Korea's total exports, and nearly every Korean over age 12 owns at least one mobile phone…
   Economic Challenges
Wishing for record-high stock prices Over the past three decades, Korea has enjoyed an annual average economic growth rate of 8.6 percent and has emerged as the world's 11th largest trading nation. In less than two generations, the nation has established itself as one of the world's leading shipbuilders and manufacturers of electronics, semiconductors and automobiles. International financial markets positively…
   Foreign Direct Investment
In the case of Korea, foreign trade accounted for 71.5% of the national GDP in 2006, while revenue from foreign invested companies took up almost 14% of total manufacturing sales. As such, Korea is working hard to support foreign invested companies. A good example is the opening of the world's largest LCD complex in Paju, just kilometers from the Demilitarized Zone. The Government built roads and infrastructure needed to support the massive ind…
   Capital Market Liberalization
Korea's strategy for capital market development centers on two interrelated policy initiatives, namely market liberalization and market augmentation. Capital market liberalization will directly increase Korea's access to foreign capital and technology, while market augmentation will improve the operational efficiency of the capital market. Significant progress has already been realized in the implementation of measures to further open the…
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