This study examines methods to improve the management of the Inter-Korean Cooperation Fund.
Even though the purpose of the Inter-Korean Cooperation Fund is to support exchange and cooperation between South and North Korea, other goals for the Inter-Korean Cooperation Fund should be sought. We can best use of the Inter-Korean Cooperation Fund as a policy measure in connection to North Korea related policy goals, and a means to prevent the excessive competition expected when South Korean companies enter North Korea.
For the fundamental improvement of South-North relations, the extant confrontational environment needs to shift to one of coexistence. Only in this way will an era of South and North exchange and cooperation begin.
After the implementation of basic guidelines regarding South and North exchange and cooperation, the exchange of human and material resources between South and North Korea began to increase slowly. However, relations were still very weak. To this end, the government began legislation on fund establishment to support South and North exchange and cooperation. The purpose of the Inter-Korean Cooperation Fund is to create a mood of reconciliation between South Korea and North Korea, and pave the way for exchange and cooperation. Therefore, the establishment of a fund to support Southern and Northern exchange and cooperation was raised and Inter-Korean Cooperation Fund Act was approved.
However, since institutional strategies for economic exchange and cooperation between South and North Korea have not yet been prepared, the government should make an effort to establish these institutional strategies. Also, even though governmental support is important for the growth of economic exchange and cooperation between South and North Korea, it is more important to establish the foundation for stable and continuous economic exchange and cooperation with North Korea by preparing general institutional strategies such as an investment promotion and protection agreement, an double tax avoidance agreement, the simplification of the immigration process, grievance mediation, and fruitage remittance.
남북협력기금의 운용개선방안(Ways to improve management of inter-Korean cooperation fund)
|Series Title; No||정책연구시리즈 / 93-05|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Trade|
|Holding||KDI; KDI School|