ID :
19131
Fri, 09/12/2008 - 11:33
Auther :
Shortlink :
https://oananews.org//node/19131
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Inter-Korean Business Cooperation Generates US$27.6 bln Economic Impact
SEOUL (Yonhap) -- Inter-Korean business cooperation has generated around $27.6 billion in economic benefit for South Korea since the landmark summit talks between the leaders of the two Koreas eight years ago, a report showed on Sept.
7.
Increased cooperation following the South-North summit of 2000 contributed to
enhancing South Korea's national image, boosting domestic demand and reducing the
potential costs of future unification by easing tensions on the peninsula,
Hyundai Research Institute said in the report.
The two Koreas still remain technically at war, as the 1950-53 Korean War ended
only with an armistice agreement, not an official peace treaty. But the summit
talks in June 2000 helped ease tensions and laid the groundwork for more
business-sector exchanges, observers say.
Eased tensions and improved national credit ratings helped South Korea save an
estimated $7.7 billion in interest payments over the past eight years, the report
said.
According to the report, the spread for government bonds declined by 1.63
percentage points to 0.6 percent in late March of this year compared with June
2000. The lower the spread, the less a country pays to borrow money from overseas
markets.
The decline in part reflects falling global interest rates and the growth in
South Korea's economy, but the report ascribed 0.5 percentage-point cut to
expanded inter-Korean business cooperation, which led to an improved national
image and sovereign credit ratings.
Domestic demand also grew as the two Koreas cooperated in building and running an
industrial complex in the North Korean border city of Kaesong, as well as a
tourist resort in the North's scenic Mt. Kumgang. The industrial complex and
tourist program are the crowning achievements of the 2000 summit talks.
The report estimated that exchanges made through the two projects have resulted
in around $1.62 billion in economic benefits for South Korea by boosting
employment and investment in Seoul.
South-North business cooperation also helped ease tension and reduce military
spending, benefiting South Korea's defense sector. A total of $18.1 billion was
estimated to have been saved in defense spending since the summit talks, the
report showed.
7.
Increased cooperation following the South-North summit of 2000 contributed to
enhancing South Korea's national image, boosting domestic demand and reducing the
potential costs of future unification by easing tensions on the peninsula,
Hyundai Research Institute said in the report.
The two Koreas still remain technically at war, as the 1950-53 Korean War ended
only with an armistice agreement, not an official peace treaty. But the summit
talks in June 2000 helped ease tensions and laid the groundwork for more
business-sector exchanges, observers say.
Eased tensions and improved national credit ratings helped South Korea save an
estimated $7.7 billion in interest payments over the past eight years, the report
said.
According to the report, the spread for government bonds declined by 1.63
percentage points to 0.6 percent in late March of this year compared with June
2000. The lower the spread, the less a country pays to borrow money from overseas
markets.
The decline in part reflects falling global interest rates and the growth in
South Korea's economy, but the report ascribed 0.5 percentage-point cut to
expanded inter-Korean business cooperation, which led to an improved national
image and sovereign credit ratings.
Domestic demand also grew as the two Koreas cooperated in building and running an
industrial complex in the North Korean border city of Kaesong, as well as a
tourist resort in the North's scenic Mt. Kumgang. The industrial complex and
tourist program are the crowning achievements of the 2000 summit talks.
The report estimated that exchanges made through the two projects have resulted
in around $1.62 billion in economic benefits for South Korea by boosting
employment and investment in Seoul.
South-North business cooperation also helped ease tension and reduce military
spending, benefiting South Korea's defense sector. A total of $18.1 billion was
estimated to have been saved in defense spending since the summit talks, the
report showed.
