Seoul Revises Guidelines for Inter-Korean Cooperation

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Last updated at: (Beijing Time) Thursday, December 20, 2001

Seoul Revises Guidelines for Inter-Korean Cooperation

South Korea Thursday revised and made guidelines for better inter-Korean cooperation and exchanges.

South Korea Thursday revised and made guidelines for better inter-Korean cooperation and exchanges.

The revision was made at a meeting of the Inter-Korean Exchangeand Cooperation Consultative Council chaired by Unification Minister Hong Soon-young.

The council revised "guidelines for the assistance of the inter-Korean cooperation fund for inter-Korean economic exchange and cooperation" and "the notification on procedures for the approval of introduction and shipment of inter-Korean trade goods".

Under the revised guidelines, the interest rate of loans to firms doing processing-on-commission business with the Democratic People's Republic of Korea (DPRK) will be lowered from the currentsix percent to four percent.

The volume of loans will be raised from the current 60 percent of the total cost of a project to 70 percent.

The loan repayment period will also be extended from the current three months to six months.

At the meeting, the council also made new "guidelines for the assistance of the inter-Korean cooperation fund for social and cultural projects" and a "notification on standards for the approval of vessel operations between the two Koreas."

All the guidelines are expected to be effectuated before next February.