Two Koreas Can Establish a Special Economic Zone
OREANDA-NEWS Moon Jae-In - the President of South Korean - said that in case of discharge, two Koreas can create a special economic zone in the border areas.
"If there is reduced tension and peace in the border areas of the provinces of Gyeonggi and Canvote will be a single special economic zone", — said the President.
It will give opportunities for the creation of a large number of jobs and for regional development of the region and will give a chance to medium and small enterprises.
Moon Jae-In said, that in the future profit from the economic cooperation of the Koreas will be at least 170 trillion won (about 1.5 trillion dollars) in the next 30 years. If it is launched comprehensive cooperation — even more. The work of the South Korean technology Park in Kaesong in North Korea, the connection of the railroad and the joint mining operations will further strengthen this effect.
The two Koreas have established two joint economic zones in the North, the Kaesong Industrial Complex (KIC) and the Mount Kumgang Tourist Region (where operations are now suspended). All of North Korea’s SEZs established to date have been enclaves, attracting investment and foreign currency but not spurring greater economic growth in the rest of the country through the establishment of linkages or through a “demonstration effect” leading to more effective economic policies elsewhere.
Moon Jae-In said that the Railways and roads of the two Koreas are planned to be connected by the end of the year.
In 2003, the Railways of South Korea and North Korea were connected for the first time in half a century, but the change of power in Seoul and the development of nuclear weapons by Pyongyang led to freezing of the project. In April 2018, the leaders of the two Korean States agreed to resume work on rail links between the South and the North.