Archive for the ‘Mt. Kumgang Tourist Special Zone’ Category

To Mount Kumgang, cabbie, and step on it!

Monday, April 16th, 2007

Joong Ang Daily
Seo Ji-eun
4/17/2007

Hyundai Asan also plans to offer ‘doctor fish,’ which eat dead skin, at the Mount Kumgang spa.

Hyundai Asan Co. said yesterday it will launch a call taxi service at Mount Kumgang in North Korea on Friday to allow better tourist access to the scenic mountain area.

The van-sized taxis will run from the lodging facilities in the neighborhood of Onjeonggak rest area, where restaurants and souvenir shops are located, to Guryeong Falls and Manmulsang, an area with a number of unique rocks and cliffs.

Hyundai Asan, the exclusive operator of inter-Korean businesses, said taxi charges will be similar to the rate applied to van-sized call taxis in Seoul, except paid in dollars. The basic fare will be $5 for the initial distance of 4 kilometers and $1 per additional 800 meters.

Currently, shuttle buses are the sole means of transportation, but these operate only during designated hours and to designated places. An increasing demand for private transportation motivated Hyundai to execute the taxi plan, according to the company spokesman.

Tourists will only have to ask Hyundai Asan employees in any of the districts in the Mount Kumgang area to use the taxis, which will be driven by ethnic Koreans living across the Yalu River in Northwest China, often called joseonjok. The drivers of the buses currently running at the North Korean resort area are also joseonjok.

Hyundai Asan also said it will release doctor fish, a species of fish known to feed on dead skin, at the Mount Kumgang spa. The fish are in the midst of the quarantine process and will be unveiled to tourists by late this month. Using the fish at the spa will cost $10, according to Hyundai Asan.

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Cash delivered to North for video reunions

Sunday, April 8th, 2007

Joong Ang Daily
Lee Young-jong and Ser Myo-ja
4/7/2007

South Korea hand-delivered $400,000 in cash to North Korea yesterday for Pyongyang’s purchase of video communication equipment. The North will spend the money to buy computers and display screens to reunite families separated for more than a half century by the demilitarized zones through video conference calls.

Two South Korean Red Cross officials boarded a cargo ship in Incheon for Nampo of North Korea Thursday morning. They carried a suitcase containing 40 bundles of one hundred, $100-dollar bills. The ship arrived in North Korea yesterday morning.

According to Red Cross officials, the cash was handed over to their North Korean counterparts at the port. “We told the North Koreans to inform us of the specific spending of the money,” an official was quoted as saying, adding that he received a receipt from the North Koreans for the cash.

The two Koreas’ Red Cross societies agreed last year that the South will fund the equipment for high-tech reunions and the promise was reaffirmed in March. South Korea was unable to provide equipment directly to the North because of U.S. regulations banning the export of dual-use goods to the North. Under the U.S. export administration regulations, strategic goods that include more than 10 percent of U.S.-made components or technology are banned for export to state sponsors of terrorism.

The money was from the inter-Korean cooperation fund. The Unification Ministry wired it to the South Korean Red Cross bank account and informed the Bank of Korea about taking the large sum of foreign currency out of the country. The money had to be hand-delivered because North Korea has had trouble accessing the international financial system since its funds were frozen at the Banco Delta Asia.

“It is sad that the North Koreans do not have a proper bank account that we can wire money to,” a Roh administration official said. “It shows the unfortunate reality of North Korea as an outsider of the international community.”

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South will give money directly to North Korea

Sunday, March 11th, 2007

Update: the money went missing.

South Korea criticizes North Korea for failing to disclose how aid was used
Herald Tribune
2/11/2008
 

South will give money directly to North Korea
Joong Ang Daily

Lee Young-jong and Ser Myo-ja
3/12/2007

Although South Korea does not allow cash to be given directly to North Korea, it made a deal of its own.

The two countries announced Saturday that Seoul would give Pyongyang cash to buy video conference equipment. A South Korean official said yesterday the amount will be $400,000.

North Korea will use the money to set up video conference calls between families separated during the Korean War, according to a joint statement issued Saturday by the two countries.

The South Korean government has strictly banned humanitarian groups ― as well as all residents ― from giving cash to the North due to concerns the money could be spent for other purposes.

“We decided to assist the North to smoothly resolve the separated family issue,” the official said, adding that the government will thoroughly monitor the spending of the money and the use of the equipment.

The cash payment agreement was first made at a Red Cross meeting in June 2006, but never publicly announced. The money was not exchanged because North Korea conducted a missile test the next month, temporarily freezing inter-Korean relations.

After progress in the recent six-party talks designed to make North Korea nuclear-free, South Korean Red Cross officials pledged again on Saturday at a meeting at a Mount Kumgang resort to give Pyongyang the money, the official said on condition of anonymity.

According to the joint statement, the two Koreas agreed that video conference call reunions will be expanded. The two Koreas also agreed a video conference call reunion center will be built in Pyongyang, separately from the reunion center under construction at Mount Kumgang, and that Seoul will provide construction material and equipment. The material and money will be released at the end of March, the agreement said.

Neither the joint statement nor the press release specified the amount of money, but the Seoul official said it will be $400,000. The construction material to be provided to the North is worth another $3.5 million, he said.

The South Korean government was unable to give the video conference call equipment, such as liquid crystal display monitors and computers, directly to the North because of United States regulations banning the export of dual-use goods to North Korea. Under the United States export administration regulations, strategic goods that include more than 10 percent of United States-made components or technology, are banned for export to state sponsors of terrorism, which include North Korea.

According to the official, South Korea advised the North to purchase the items from China with the cash. Washington could make an exception to the export ban, presumably at Seoul’s request, but it would take time to do so.

In addition to the cash, the $3.5 million worth of goods, such as trucks, construction materials, air conditioners, heaters and cables, will be provided to build a video conference call center in Pyongyang.

At the Red Cross talks, the North also agreed to resume the construction of the reunion center on Mount Kumgang on March 21. The two Koreas began the construction in August 2005, but the work stalled last July. The buildings are about 30 percent complete.

Last week’s Red Cross meeting was scheduled for only one day, for about two hours. Due to the North’s persistent demands for cash and materials, the talks went on for a second day, the government official said.

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Koreas to hold Red Cross talks to resume construction of family reunion center

Thursday, March 8th, 2007

Yonhap
3/8/2007

Red cross officials from South and North Korea are to meet this week on resuming the construction of a family reunion center on the North’s scenic mountain bordering the South along the east coast, South Korean officials said.

The one-day meeting, slated to be held at the North’s Mount Geumgang resort on Friday, will also address the next family reunions via video link to be held on March 27-29.

Last week, the two Koreas agreed to resume reunion events for families separated by the border since the end of the Korean War. The next face-to-face family reunions will be resumed in early May.

Shortly after the North conducted its missile tests in July, the South suspended food and fertilizer aid. In retaliation, the communist nation immediately suspended inter-Korean talks, family reunions and the construction of the family reunion center.

“The construction has been put on hold for about eight months, so we will have to resume construction after checking whether there are technical problems. The construction will likely be completed next year, far later than the originally scheduled April of this year,” a South Korean Red Cross official said on condition of anonymity.

High on the agenda will be discussions on when to resume construction, how to check the facilities needed for construction, and how to provide supplies and dispatch engineers, the official said. The South Korean delegation will be headed by Hwang Jeong-ju, while Pak Yong-il will lead the North Korean team.

The two sides started the construction at a village near the scenic mountain resort in August 2005. The envisioned 12-story building will house two reunion halls and serve as the venue for family reunion events.

The two Koreas have held 14 rounds of family reunions. More than 90,000 people from South Korea alone have remained separated from their loved ones since the end of the 1950-53 Korean War.

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Outlook for Inter-Korean Business Bright

Wednesday, March 7th, 2007

Korea Times
Park Hyong-ki
3/7/2007

The outlook for inter-Korean trade this year seems bright, as North Korea agreed to dismantle its nuclear weapons programs at the six-party talks in Beijing last month.

According to a survey conducted by the Korea International Trade Association (KITA), about 45 percent of South Korean companies doing business with North Korea were optimistic that the volume of inter-Korean trade will grow this year. The survey was conducted on 150 firms in February.

Some 35 percent believe that the bilateral trade will remain the same as last year’s, while only 15 percent showed negative responses toward this year’s trade, saying that the volume will “drastically” decrease.

Only two companies said they will pull out of North Korea this year, while five companies were undecided.

Last year, inter-Korean trade amounted to about $1.3 billion, up 28 percent from 2005. Key trading commodities were agricultural, chemical and textile products.

Despite North Korea’s nuclear and missile tests as well as chilly inter-Korean relations last year, South Korean companies operating in the Kaesong Industrial Complex saw their sales grow 69 percent to $298 million.

The Kaesong site is one of the major cross-border projects symbolizing economic ties between the two Koreas, which utilize North Korea’s cheap labor and South Korea’s technological skills.

The Ministry of Unification is hoping to attract about 2,000 manufacturers to Kaesong by 2012. Currently, there are 55 South Korean firms operating in the joint economic zone, which account for 22 percent of overall South-North business, according to the trade association.

The other joint business _ the Mt. Kumgang tour managed by Hyundai Asan _ suffered from the aftermath of North Korea’s nuclear weapon test. The tourism project recorded only $57 million in sales, down 35 percent from the year before.

Specifically, a total of 477 South Korean companies participated in inter-Korean trade last year, down from 523 firms in 2005, due to heightened risks following Pyongyang’s nuclear test.

About 44 percent of those surveyed said that the test had negatively affected their business with the North. The report showed that only 39 percent reaped a “little” profit last year while doing business with North Korea.

Half of firms upbeat for North trade
Joong Ang Daily
3/8/2007

Almost half of South Korean companies doing business with North Korea said they have a bright outlook for inter-Korean trade this year due to expectations for better ties with the North, a poll said yesterday.

According to a survey of 67 companies conducted by the Korea International Trade Association, 45 percent of the respondents said inter-Korean trade will likely increase this year. Thirty-five percent expected trade to remain at the same level as last year while 15 percent said it will likely decline.

The poll also said 75 percent of local companies operating in the industrial park in the North’s border city of Kaesong had an optimistic outlook for trade. The industrial complex, mainly for smaller South Korean firms, is considered a model for reconciliation and cooperation between the two Koreas. Currently, 21 garment and other labor-intensive South Korean plants are operating there, employing about 11,000 low-paid North Korean workers.

The survey said among the firms that forecast inter-Korean trade to rise, 17 percent said their continued trust in North Korean firms was the reason for their upbeat outlook, while 16 percent and 14 percent said it was a rise in new orders and expectations for inter-Korean reconciliation. The survey was conducted before a deal on dismantling North Korea’s nuclear program was reached, reflecting that local firms have maintained a positive view toward inter-Korean trade. The agreement calls for Pyongyang to shut down and disable its main nuclear reactor and dismantle its atomic weapons program.

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S. Korea Refuses North’s Request for Restored Aid

Saturday, March 3rd, 2007

washington Post
3/3/2007

South Korea on Friday added pressure on North Korea to comply with an international disarmament agreement, refusing the impoverished nation’s demand to restore full aid shipments until after its main nuclear reactor is shut down.

At the first high-level talks between the two Koreas since the North’s underground nuclear test in October, the communist nation “agreed to make joint efforts for a smooth implementation” of its pledge last month to take initial steps toward dismantling its atomic program, according to a final statement.

The North and South also agreed to resume family reunions of relatives split by their border and planned test runs of railway lines between the countries.

North Korea and the International Atomic Energy Agency have agreed on March 13 as the starting date for a two-day visit by the agency’s chief, Mohamed ElBaradei, U.N. officials said Friday. The officials asked for anonymity because they were not authorized to reveal specifics of the trip, which is expected to help alleviate some misgivings that the unpredictable regime might renege on its agreement to shut down its nuclear facilities.

This week’s meetings in Pyongyang were part of the historic reconciliation launched between the Koreas since their leaders met in their first and only summit in 2000. The countries remain technically at war because the cease-fire that ended the 1950-53 Korean War has never been replaced by a peace treaty.

But attempts to bring the countries together have been complicated since 2002, when Washington accused North Korea of secret uranium enrichment efforts that the Bush administration said violated an earlier disarmament deal.

The situation deteriorated further last July when North Korea test-launched a series of missiles, prompting South Korea, one of the North’s main sources of aid such as rice and fertilizer, to put the shipments on hold.

Relations worsened after North Korea’s Oct. 9 nuclear test. But a breakthrough came last month after a revival of six-nation nuclear negotiations — including China, Japan, Russia, the United States and the two Koreas — in which the North pledged to make moves toward abandoning its nuclear program.

Two Koreas agree on fertilizer aid, reunions
Joong Ang Daily
Ser Myo-ja
3/3/2007

A May reunion of some family members separated since the Korean War and the resumption of fertilizer aid to North Korea are among the agreements the two Koreas announced yesterday in Pyongyang.

Video conference calls will take place March 27 to 29, and the face-to-face reunions will happen in early May at the Mount Kumgang resort in North Korea, according to Unification Minister Lee Jae-joung and his North Korean counterpart, Kwon Ho-ung.

The two released a joint statement yesterday wrapping up their four-day meeting. The reunions will be the 15th held; the last round took place in June of last year.

In the talks, which had been stalled since North Korea tested a missile in July, the two Koreas also agreed to quickly resume a project to build a permanent reunion center. Working-level Red Cross officials from both countries will meet Friday at Mount Kumgang to discuss it.

More Red Cross talks are scheduled April 10 to 12 at the same venue to address issues associated with “those who have gone missing since the Korean War.” The term refers to the South Korean war prisoners and kidnap victims still alive in the North.

Although there was no specific mention of rice and fertilizer aid in the statement, Mr. Lee said Seoul will provide them as it has done in the past. Speaking to journalists after wrapping up the talks, Mr. Lee said, “The North will fax its request for fertilizer aid, and the South will provide it accordingly.” He added that “spring is coming fast, so we probably need to hurry.” Seoul has been providing an average of 150,000 tons of fertilizer, used in spring farming, per year. It will provide 300,000 tons this time.

According to the pool report from North Korea, Mr. Lee also said “the matter about rice will be discussed at the economic talks in April and an official decision will be made there.”

The two ministers agreed to expand economic cooperation ― including finalizing of 400,000 tons of rice aid ― during economic talks April 18 to 21 in Pyongyang.

“Since we agreed to meet in Pyongyang in April for economic talks, we will be able to discuss rice aid, taking into account how far the North implemented the Feb. 13 nuclear agreement,” a South Korean official said on the condition of anonymity.

He was referring to the agreement reached last month at the six-nation nuclear talks, in which Pyongyang promised to shut down its main nuclear facility within 60 days in return for aid and economic assistance from other countries.

The two Koreas also agreed to conduct test-runs of inter-Korean railroads before the end of June, as soon as both sides’ military arms are comfortable with the safety measures in place. On March 14 and 15, economic committee representatives will meet in Kaesong to address the plan. The military guarantee is the key for the trains to cross the demilitarized zone between the two Koreas.

Mr. Lee and Mr. Kwon agreed the next round of ministerial meetings will take place in Seoul for four days starting May 29.

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Koreas lock horns over humanitarian projects, economic issues

Thursday, March 1st, 2007

Yonhap
3/1/2007

South Korea’s five-member negotiating team to the ongoing ministerial talks on Thursday paid a courtesy call on Kim Yong-nam, the North’s ceremonial head of state, as the talks went into a third day in Pyongyang.

Lee Jae-joung, South Korea’s point man on North Korea, became the third unification minister to meet Kim, president of the Presidium of the Supreme People’s Assembly, and Lee is to hold a press briefing to explain what they discussed later Thursday, pool reports said. The meeting was hurriedly arranged at the request of the South on Thursday morning.

At the Mansudae Assembly Hall, the North’s No. 2 leader received the South Korean delegation, which consists of Lee, Vice Finance Minister Chin Dong-soo, Vice Culture Minister Park Yang-woo, Lee Kwan-se, the assistant unification minister, and Yoo Hyung-ho, a senior official of the National Intelligence Service.

The meeting came as officials from the divided Koreas were engaged in negotiations on how to resume aid and family reunion events and other topics at their first high-level talks in seven months.

They had lunch together at the renovated Okryukwan, a North Korean restaurant famous for its cold noodle soup. After their one-hour meeting with the North’s titular head of state, the South Korean delegation will visit the North’s national orchestra, the reports said.

Earlier in the day, the South Koreans held a simple 10-minute ceremony to mark the 88th anniversary of the March 1 Independence Movement at the Koryo Hotel. As a gesture of goodwill, the North provided a birthday breakfast for Lee, who turned 63 on Thursday.

The two sides had no official schedule for negotiations for the day, but top negotiators and working-level officials held talks to discuss the topics proposed during a plenary session on Wednesday.

The South gave top priority to resuming face-to-face family reunion events in April and construction of a family reunion center at the Mount Geumgang resort as soon as possible, while the North called for holding economic talks this month and pressed for the South’s resumption of rice and fertilizer aid, the reports said.

“The North raised the issue of humanitarian aid during working-level officials’ meeting on Wednesday. But no direct mention on rice and fertilizer aid was made in a draft joint statement,” a South Korean official said, asking to remain anonymous.

North Korea has proposed to resume inter-Korean humanitarian projects on a full scale immediately, and also offered to hold a meeting to discuss ways of boosting economic ties sometime in March in Pyongyang.

The details for reopening reunion events for families separated by the border are likely to be worked out easily, but Seoul’s rice aid to North Korea might surface as a bone of contention, according to analysts. South Korea also holds the position it prefers to hold the the economic talks in April.

The South hopes to reopen the economic talks next month so as to use rice aid as leverage to make the North take quick steps in complying with a recent agreement over its nuclear disarmament in return for energy aid.

“Unlike previous ministerial talks, these involve the dual tracks of inter-Korean relations and the six-party talks, so difficult negotiations are ahead,” a top South Korean unification ministry official said, asking to remain anonymous because of the sensitivity of the issue.

Kwon Ho-ung, the North’s top negotiator, avoided specifics about humanitarian projects in his keynote speech, but analysts said that the North hopes to link the resumption of emotional family reunions with Seoul’s food and fertilizer assistance to Pyongyang.

Shortly after the North conducted its missile tests in July, the South suspended food and fertilizer aid. After the North’s nuclear weapon test in October, the possible resumption of aid was blocked.

In retaliation, the communist nation immediately suspended inter-Korean talks and reunions for families separated by the sealed border since the end of the 1950-53 Korean War.

Seoul may offer to ship some of the fertilizer aid to Pyongyang shortly after the talks so that it can be used for rice seedling planting this spring. But the South maintains the position that more fertilizer and rice will be given in accordance with how much progress the North makes in implementing the steps agreed upon during the six-nation talks on its nuclear dismantlement, according to sources.

Not only a date for the resumption of economic talks with Pyongyang as the venue, they will also have to agree on how to cooperate in inter-Korean projects, such as reopening cross-border railways, they said.

The South’s chief negotiator has proposed test runs of reconnected cross-border railways in the first half of this year, and the launch of operations by the end of 2007, according to pool reports.

As a precondition for the operation of cross-border railways, Lee said it is necessary to make headway in the inter-Korea economic project, which involves exchanging raw materials from the South for the North’s minerals.

North Korea abruptly called off scheduled test runs of cross-border railways in May under apparent pressure from the hard-line military. It also led to mothballing an economic accord under which South Korea was supposed to provide raw materials in exchange for the North’s minerals. North Korea’s subsequent missile and nuclear weapons tests further clouded hopes of implementing the accord.

The tracks, one line cutting across the western section of the border and the other crossing through the eastern side, have been completed and were set to undergo test runs. A set of parallel roads have been in use since 2005 for South Koreans traveling to the North.

South Korea has repeatedly called on North Korea to provide a security guarantee for the operation of cross-border railways, but the North has yet to give an answer on the issue.

The reconnection of the severed train lines was one of the tangible inter-Korean rapprochement projects agreed upon following the historic summit between then South Korean President Kim Dae-jung and North Korean leader Kim Jong-il in 2000.

In 2005, South Korea agreed to provide the North with US$80 million worth of raw materials to help it produce clothing, footwear and soap starting in 2006. In return, the North was to provide the South with minerals, such as zinc and magnesite, after mines were developed with South Korean investments, guaranteed by the Pyongyang government.

The talks, the 20th since the leaders of the two Koreas held their first-ever summit in Pyongyang in June 2000, come as the world is paying keen attention to whether North Korea will honor its promise to take the first steps toward ending its nuclear weapons program in return for energy aid.

The ministerial talks, the highest-level channel of regular dialogue between the two Koreas, had been suspended amid tension over North Korea’s missile tests in July and its nuclear weapon test in October.

On Feb. 13, North Korea agreed to shut down its nuclear facilities and eventually dismantle them in exchange for energy aid and other benefits, while the U.S. agreed to discuss normalizing relations with the communist nation. Only two days later, Seoul and Pyongyang agreed to resume ministerial dialogue after a seven-month hiatus.

In the deal, North Korea will receive initial aid equal to 50,000 tons of heavy fuel oil for shutting down and sealing its main nuclear reactor and related facilities at Yongbyon, 80 kilometers north of Pyongyang, within 60 days. International Atomic Energy Agency inspectors will determine whether the North carries out the steps properly.

North Korea can eventually receive another 950,000 tons in aid if it disables the reactor irreversibly and declares that it has ended all nuclear programs. The cost of the aid will be equitably distributed among South Korea, the U.S., China, Japan and Russia, according to officials.

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N. Korea offers to resume humanitarian projects

Wednesday, February 28th, 2007

Yonhap
2/28/2007

North Korea has proposed to resume inter-Korean humanitarian projects on a full scale immediately as the two Koreas held the first ministerial meeting in seven months, South Korean officials said Wednesday.

North Korea also offered to hold a meeting to discuss ways of boosting economic ties as soon as possible during a plenary session of the meeting held in the North’s capital Pyongyang, according to the officials.

“We have yet to determine the scope of full-scale resumption of humanitarian projects. The details will emerge from working-level, high-level negotiations,” said Lee Kwan-se, spokesman for the South’s five-member negotiating team.

Lee stressed the two sides did not discuss the resumption of Seoul’s food and fertilizer aid to North Korea during the two-hour session but sounded a note of optimism over the upcoming negotiations. “We think that the North’s offer expresses its firm will to resume humanitarian projects.”

In a keynote speech, Kwon Ho-ung, the North’s top negotiator, proposed to resume humanitarian projects on a full scale immediately when the four-day ministerial talks end and resume a meeting for economic cooperation at the earliest possible time in Pyongyang.

Kwon did not specify about humanitarian projects in his keynote speech, but analysts said that the North hopes to link the resumption of emotional family reunion events with Seoul’s food and fertilizer aid to Pyongyang.

Unification Minister Lee Jae-joung, Seoul’s top negotiator, proposed to conduct test runs of reconnected cross-border railways in the first half of this year and launch operations by the end of 2007, according to pool reports.

As a precondition for the operation of cross-border railways, Lee said it is necessary to make headway in the inter-Korea economic project such as exchanging raw materials from the South for the North’s minerals.

Lee also expressed regrets over the North’s missile and nuclear weapons tests, which he said led to the earlier-than-scheduled end of the last ministerial meeting and a seven-month hiatus in inter-Korean dialogue.

In this vein, he urged the North to fulfill the promise to dismantle its nuclear weapons program in return for energy aid in a “quick and smooth” manner, saying all the parties concerned are equitably responsible for taking action to achieve denuclearization of the Korean Peninsula on the basis of the principle of “action for action.”

Lee said the construction of a family reunion center at the Mount Geumgang resort should resume immediately and proposed that face-to-face family reunions be held no later than April. The construction has been suspended since the North conducted missile tests in July.

He also proposed to hold the cabinet-level meeting every quarter of the year regardless of the political situation, adding that the two sides should have to make efforts to resolve the issue of South Korean prisoners of war (POWs) and abductees held in the North.

During the meeting, North Korea is widely expected to ask for the immediate resumption of the South’s rice and fertilizer aid, while the South hopes to use it as leverage to make the North take quick steps in complying with the six-party agreement.

In the afternoon, the South Korean delegation is to visit the Kim Won-kyun Pyongyang Music College. North Korea chose the school in the district of Munsu near the Taedong River, defying concern that it may attempt to stage a visit to a politically sensitive place.

On Tuesday, negotiators from both sides attended a gala dinner hosted by North Korean Prime Minister Pak Pong-ju, shortly after the South’s delegation arrived in North Korea.

The talks, the 20th since the leaders of the two Koreas held their first-ever summit in Pyongyang in June 2000, come as the world is paying keen attention to whether North Korea will honor its promise to take the first steps toward ending its nuclear weapons program in return for energy aid.

The ministerial talks, the highest-level channel of regular dialogue between the two Koreas, had been suspended amid tension over North Korea’s missile tests in July and its nuclear weapon test in October.

On Feb. 15, Seoul and Pyongyang agreed to resume ministerial dialogue after a seven-month hiatus, just two days after the North pledged to take action to end its nuclear weapons program in return for economic and diplomatic benefits from South Korea, the United States, China, Japan and Russia.

Shortly after the North conducted missile tests in July, the South suspended food and fertilizer aid. After the North’s nuclear weapon test in October, the possible resumption of aid was blocked.

In retaliation, the communist nation immediately suspended inter-Korean talks and reunions for families separated by the sealed border since the end of the 1950-53 Korean War.

Seoul is expected to ship some of the fertilizer aid to Pyongyang shortly after the Cabinet-level talks so that it can be used for the planting of rice seedlings this spring. The rest will likely be offered according to how much progress the North makes in implementing the steps agreed upon during the six-nation talks on the North’s nuclear dismantlement, according to sources.

“Our aid to North Korea will be within the scope of the amount that can be understood by the public,” a government official said, asking to remain anonymous because of the sensitivity of the issue, suggesting the aid will not exceed 500,000 tons of rice and 350,000 tons of fertilizer this year, the amount given in previous years.

In April, the South offered more economic aid to the North in exchange for finding a resolution to the POW and abductee issue, but the North was reluctant to deal with the humanitarian issue.

Official Seoul government data shows that 485 South Koreans have been abducted to North Korea since the Korean War ended, and that 548 South Korean soldiers were taken prisoner by the North during the three-year conflict.

North Korea abruptly canceled test runs of cross-border railways in May under apparent pressure from the hard-line military. It also led to mothballing an economic accord under which South Korea was supposed to provide raw materails in exchange for the North’s minerals. North Korea’s subsequent missile and nuclear weapons tests further clouded hopes of implementing the accord.

The tracks, one line cutting across the western section of the border and the other crossing through the eastern side, have been completed and were set to undergo test runs. A set of parallel roads have been in use since 2005 for South Koreans traveling to the North. NKeconWatch: (Click here to download the North Korean Railway system onto Google Earth)

South Korea has repeatedly called on North Korea to provide a security guarantee for the operation of cross-border railways, but the North has yet to give an answer on the issue.

The reconnection of the severed train lines was one of the tangible inter-Korean rapprochement projects agreed upon following the historic summit between then South Korean President Kim Dae-jung and North Korean leader Kim Jong-il in 2000.

In 2005, South Korea agreed to provide the North with US$80 million worth of raw materials to help it produce clothing, footwear and soap starting in 2006. In return, the North was to provide the South with minerals, such as zinc and magnesite, after the mines were developed with South Korean investments, guaranteed by the Pyongyang government.

On Feb. 13, North Korea agreed to shut down its nuclear facilities and eventually dismantle them in exchange for energy aid and other benefits. The U.S. also agreed to discuss normalizing relations with the communist nation.

In the deal, North Korea will receive initial aid equal to 50,000 tons of heavy fuel oil for shutting down and sealing its main nuclear reactor and related facilities at Yongbyon, 80 kilometers north of Pyongyang, within 60 days. International Atomic Energy Agency inspectors will determine whether the North carries out the steps properly.

North Korea can eventually receive another 950,000 tons in aid if it disables the reactor irreversibly and declares that it has ended all nuclear programs. The cost of the aid will be equitably distributed among the five other countries.

N. Korea Wants More Aid
Korea Times
Lee Jin-woo
2/28/2007

North Korea on Wednesday urged South Korea to resume inter-Korean humanitarian aid immediately.

On the second day of the inter-Korean Cabinet talks, which resumed after a seven-month hiatus, Kwon Ho-ung, chief Cabinet councillor of the North, also proposed that the two Koreas hold a meeting to discuss economic cooperation in its capital at an early date. The two Koreas discussed the details of aid shipments, especially rice and fertilizer, during the economic cooperation meeting.

Seoul seemed somewhat reluctant to accept Pyongyang’s requests before the Stalinist state shows that it will keep its promise to take the first steps to shut down and seal its primary nuclear reactor and resume the reunion of separated families.

Unification Minister Lee Jae-joung said in a keynote speech that the North should fulfill its promise to dismantle its nuclear weapons program in return for energy aid, which was agreed upon in the six-party talks in Beijing on Feb. 13.

Lee also suggested that the construction of a family reunion center at Mount Kumgang in North Korea be resumed immediately and that family reunions resume no later than April.

Last July, Pyongyang notified Seoul that it would stop constructing the reunion center, which was scheduled to be completed this year. The North also suspended inter-Korean family reunions scheduled for Aug. 15 last year.

The North abstained from specifying whether its request for humanitarian aid meant the shipment of rice and fertilizer from Seoul to Pyongyang.

During the four-day talks here, Seoul is expected to offer the shipment of some 500,000 tons of rice and 350,000 tons of fertilizer to Pyongyang.

The North, however, wants the South to include an additional 500,000 tons of rice and 100,000 tons of fertilizer, shipments that were postponed after the North’s test-firing of seven missiles on July 5, sources said.

“We’re doing the best we can. It remains to be seen what kind of results we can produce until the two Koreas release a joint press release on Friday,’’ Lee was quoted as saying after the meeting.

Later in the day, the South Korean delegation visited the Kim Won-kyun Pyongyang Music College. North Korea chose the college near the Taedong River for the visit, defying predictions that it would attempt to arrange a visit to a politically sensitive venue such as national cemeteries where North Koreans who sacrificed themselves during or after the 1950-53 Korean War were buried.

The ministerial talks, the highest-level channel of regular dialogue between the two Koreas, were suspended amid tension over North Korea’s missile tests in July and its nuclear test in October.

On Feb. 13, North Korea agreed to shut down its nuclear facilities and eventually dismantle them in exchange for energy aid and other benefits. The United States also agreed to discuss normalizing relations with the communist nation.

North Korea is supposed to receive initial aid equal to 50,000 tons of heavy fuel oil for shutting down and sealing its main nuclear reactor and related facilities at Yongbyon, 80 kilometers north of Pyongyang, within 60 days. International Atomic Energy Agency inspectors will determine whether the North carries out the steps properly.

North Korea can eventually receive the remaining 950,000 tons in aid if it disables the reactor irreversibly and declares that it has ended all nuclear programs.

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Tourists will soon be able to visit inner Kumgang

Monday, February 26th, 2007

Joong Ang Daily
Seo Ji-eun
2/26/2007

Hyundai Asan Co., an exclusive operator of tour packages between South and North Korea, said yesterday tourists will be allowed to travel to the inner part of scenic Mount Kumgang in the North, an area that has been off-limits, as early as April.

Assisted by the recent agreement on the North’s nuclear issue, Hyundai and North Korea discussed the further opening of the mountain last week.

“The two sides have the same opinion about allowing tourists into inner Mount Kumgang,” said a Hyundai Asan spokesman. “The tour will be possible around early April.”

After visiting the area to look into the feasibility of travel last May, Hyundai Asan forecast it would begin the new service last autumn, but its plans were derailed by the North’s missile and nuclear tests.

According to the Hyundai Asan spokesman, technicians from both Koreas will be gathering as early as possible to talk about constructing roads, developing tour courses and mending facilities.

The leisure arm of Hyundai Group aims to attract 400,000 tourists to Mount Kumgang this year. Although the firm set the same target last year, it ended up achieving 260,000, partly as a consequence of reduced tourism following the nuclear test.

To meet the goal this year, the firm plans to shorten travel times by operating planes that link Seoul’s Gimpo airport to Yangyang in Gangwon province, near Mount Kumgang. Also, a duty-free shop run by the Korea National Tourism Organization will be launched in March and a golf course and spa facilities are slated to open in October.

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Key facts on relations between North and South Korea

Monday, February 26th, 2007

Reuters (Hat tip DPRK studies)
2/26/2007

Senior officials from South and North Korea resume talks on Tuesday, seven months after dialogue broke down in acrimony over Pyongyang’s missile tests.

Following are key points in the ties between the two:

STILL AT WAR

– An armistice ending the 1950-53 Korean War dominates the relationship between the two Koreas. Nearly 1.2 million North Korean soldiers and South Korea’s 680,000 troops remain in a tense military standoff despite political and commercial ties that have warmed since 2000.

– The two have enough missiles and artillery pointed at each other to largely destroy major cities on both sides of the Korean peninsula.

POINTS OF EXCHANGE

– An industrial park in Kaesong just a few minutes’ drive from the heavily-fortified border is home to 21 companies employing about 12,000 North Korean workers.

– About 1.4 million South Koreans have visited the Mount Kumgang resort in the North just above the border on the east since the tours began in 1998. Roughly a quarter of a million made the visit in 2006 even as tension spiked following the North’s missile and nuclear tests.

– About 102,000 people crossed the border last year, not including Kumgang tourists and most of them South Koreans visiting the North for business. The total exchange of people was 269,336 as of the end of 2006.

TRADE

– Cross-border trade was $1.35 billion in 2006 up from $1.05 billion a year ago, largely from the strength of the Kaesong industrial park.

HUMANITARIAN AID

– South Korea has supplied between 200,000-350,000 tonnes of fertiliser a year to the North since 2000.

– It has also shipped up to 500,000 tonnes of rice a year to the North in the form of low-interest, long-term loans. Food aid has been suspended since the North’s missile tests in last July.

REFUGEES, PRISONERS OF WAR AND ABDUCTEES

– South Korea believes more than 1,000 of its people are still alive in the North either as civilian abductees or as prisoners captured during the Korean War.

– North Korea has said 10 South Korean POWs and 11 civilians were alive there.

– More than 1,000 North Koreans each year have fled hunger and persecution in the North and sought refuge in the South. In the first six months of last year, 854 arrived in the South for a total of 8,541. (Source: South Korean Unification Ministry, Kaesong Industrial District Management Committee, Reuters)

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