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Seoul OK's Inter-Korean Economic Cooperation Agreement
The South Korean government Tuesday approved four agreements on inter-Korean economic cooperation signed at the inter-Korean ministers' meeting last December.
The approval was made at a cabinet meeting chaired by President Kim Dae-jung Tuesday.
The agreements which govern investment guarantees, prevention of double taxation, settlement of commercial disputes and settlement of payments will go to the National Assembly (parliament) for ratification.
Once they become effective, investors in the other country will be entitled to most-favored nation status, and receive protection for their investments and be able to settle commercial disputes at an inter-Korean arbitration board.
The prevention of double taxation agreement will recognize taxation rights by authorities where profits are made, and exempt half of taxes to be levied on profits made through means of transportation.
Under the agreements, an arbitration board handling inter-Korean commercial disputes will be composed of four persons��including the board's chairman, and will be set up in both sides.
Meanwhile, a bank will be established to settle inter-Korean transactions, with the US dollar designated as the means of payment.
The ratification by the National Assembly is expected to face no difficulties as the opposition Grand National Party has promised its support.
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