Lawmakers call for FTA benefits to Gaeseong goods

A delegation of South Korean lawmakers from ruling and opposition parties, have urged the South Korean government to support the Gaeseong Industrial Complex in North Korea, after visiting there for the first time since the death of North Korea’s long-time leader Kim Jong-il in December.

They called on the South Korean government to negotiate with the U.S. and the EU, both of which have free trade agreements with South Korea, to give FTA benefits to products made in the complex with the recognition of them as “Made in Korea,” according to Park Joo-sun, chairman of the inter-Korean relationship development committee of the National Assembly.

Eight lawmakers, who are members of the inter-Korean relationship development committee and the foreign affairs, trade and unification committee in the National Assembly, crossed the border and went into the Gaeseong Industrial Complex where South Korean manufacturing companies hire North Korean workers to produce goods.

In Gaeseong, the delegation visited South Korean companies to be briefed about their business situation in the complex. However, they did not meet with North Korean officials.

“South Korean companies in Gaeseong asked us today to urge the South Korean government to allow easy carryout of equipment (into the North) for new investment in Gaeseong, as well as to quickly build convenient facilities for South Korean employees working there,” said Park after wrapping up the visit.

“As for their request to increase the number of North Korean workers, we urge both the South and North Korean authorities to hold inter-Korean talks to discuss the issue promptly,” he said.

According to Park, South Korean companies in Gaeseong said they lack a total of 23,000 North Korean workers. About 50,000 North Korean workers are currently employed by South Korean manufacturers of labor-intensive goods.

The lawmakers later met Unification Minister Yu Woo-ik to convey Gaeseong manufacturers’ demands.

It is the first time for a bipartisan delegation of lawmakers to visit the North Korean city.

“Gaeseong is the only spot that is working in terms of inter-Korean exchanges. It has symbolic meaning,” said Lee Soo-ho, an analyst at the Samsung Economic Research Institute.

“It may have a political meaning that lawmakers want to pressure the current administration to move forward into more active inter-Korean business exchanges as China-North Korea economic ties are going well,” he said.

Inter-Korean relations soured with North’s two deadly attacks on the South in 2010. The South Korean government’s so-called May 24 measure, which ban any exchange and cooperation with the North, are still in effect, although Unification Minister Yu Woo-ik has been easing the tough stance toward the North since late last year.

The South’s delegation consisted of Rep. Kim Choong-hwan, Nam Kyung-pil, Koo Sang-chan, Kim Seong-soo and Lee Jung-hyun from the ruling Saenuri Party, as well as Park Joo-seon, Kim Dong-chul and Park Sun-sook from the opposition Democratic United Party.

Earlier on Thursday, North Korea apparently rejected South Korea’s proposal to hold inter-Korean talks on pest control at ancient tombs located in the North.

South Korean authorities had contacted the North’s land and environment protection office, under the name of the Office of Forestry, through a Red Cross channel on Tuesday, to suggest a meeting in late February.

However, Pyongyang’s China-based news website Uriminzokkiri on Thursday said the South is not ready for dialogue because it banned a civilian inter-Korean group meeting.

By Kim Yoon-mi (yoonmi@heraldcorp.com)