Seoul - South and North Korea are looking to set up a joint research center in China, most likely in Beijing, for conducting research on two-way cooperation and what market policies Pyongyang will adopt.
According to Commerce, Industry and Energy Minister Shin Kook-hwan Aug. 28, investing in North Korea is not what it used to be and requires a wider platform for promoting related activities.
‘Now that the two governments have a basic agreement for collaboration, it is important that market mechanisms like investment protection agreements are finalized," Shin told reporters.
At the same time, it is vital that North Korea decides which economic system it will adopt and this will obviously have a strong impact on how South Korean companies will be doing business in the North," he noted.
Therefore, he said, it would make sense for the two governments to jointly establish a research center in a neutral region and perform research on which is the best path for both the South and the North.
Already, he said, a private company has established a research institute together with Beijing University and a similar organization at the government level will help provide answers to many existing questions, the newly-appointed minister said.
Commenting on the trade imbalance with Japan, Shin said there are steps to be taken to rectify the situation, such as the vitalization of Korea’s export of agricultural goods to the neighboring country.
"We are continuing to attract investments in areas like automotive components and such investments will bring about basic changes in the structure of the Korean industry," Shin said.
At the same time, changes in the relationship betweeen South and North Korea will inevitably bring about transformations in the ties between Seoul and Tokyo, he projected.