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  THE HISTORIC IMPLICATIONS OF THE 2007 INTER-KOREAN SUMMIT
by Keun-sik Kim
[Kyungnam University, Department of Political Diplomacy]

posted October 23, 2007



Preface :
Article :
Keun-sik Kim (Kyungnam University, Department of Political Diplomacy)

If we agree that the future direction of the Korean Peninsula is a path toward peninsular peace and the flourishing of inter-Korean relations, then the historic implications of the 2007 inter-Korean summit declaration can be summed up as an expanded successor to the June 15, 2000 Joint Declaration. Since 2000, inter-Korean relations have steadily improved in accordance with the June 15 Joint Declaration, the result of the first-ever inter-Korean summit. The June 15 Joint Declaration was an opportunity for the two Koreas to put an end to their hostile relationship of more than half a century and open the curtain on a new era of reconciliation, a path down which Seoul and Pyongyang have been traveling for the past seven years. However, on the way down this path, new challenges have arisen and must be overcome. Progress was necessary in the political and military realms, and new formulas for economic cooperation needed to be developed. Now the two Koreas are in a position to take their relationship to the next level.

While basic inter-Korean relations have been progressing since the June 15 Joint Declaration, the recent summit was the opportunity to prepare the groundwork to raise these relations to a higher level. The earlier declaration set the Koreas down the path of reconciliation, but the latest summit served as an opportunity to steer the two Koreas down an even more promising path, by encompassing not only reconciliation, but other forms of cooperation and coordination, as well. The 2007 summit broadened the path which the June 15 Joint Declaration set Seoul and Pyongyang on, so that now the two Koreas can safely progress toward the ultimate goals of peace and reunification.

More than anything, this summit has made the development of normal inter-Korean relations possible by making progress toward peace and improvements in military relations. Up until now, inter-Korean relations have put economic and socio-cultural issues first, relegating political and military issues to the back burner in an unbalanced approach to reconciliation. While economic cooperation and socio-cultural exchanges took place on a more frequent basis, political reconciliation and the building of military trust could not keep up at the same pace, leading to an abnormal situation. Now, through the recent summit, the two Koreas mutually agreed to put forth concrete efforts to settle hostilities and ease military tensions while building trust. At the same time both Koreas reaffirmed their stance against war and for nonagression, and to devote concrete efforts to developing a means to build military trust in the West Sea.

By putting military confidence in the spotlight during the latest summit, it is possible to guarantee continued development and expansion of inter-Korean economic cooperation, as well. Over the past seven years, it is the lack of trust in the military realm that has hampered efforts to expand economic cooperation. The issue of military assurances was one key reason train services could not begin on the Kyunghui Railway. Cross-border economic cooperation relies on the creation of trust between the militaries of North and South Korea, and so the creation of military guarantees is essential. Therefore, the inclusion at the recent summit of an agreement to build military trust is a vital component in the future of inter-Korean relations.

The 2007 summit set the stage for economic cooperation, together with progress in the military realm, to move to a higher level, and to further expand economic projects to be overseen by both Koreas for mutual benefits. Most existing economic cooperation projects involve South Korea providing economic assistance to the North, but now investment in projects that will be profitable to both North and South Korea are possible. The June 15 Joint Declaration called for ¡°balanced development of the national economy,¡± while now the key words are ¡®joint management¡¯ and ¡®joint profits¡¯.

The proposed cooperative shipbuilding zones in Anbyun and Nampo serve as models for these jointly managed, mutually profitable cooperative projects. The reason South Korean shipyards have moved to China and Southeast Asia is because of the difficulty in hiring cheap skilled labor at home. In North Korea, as the Youngnam ship repair factor is being completed, there is a growing interest in the shipping industry, and related technologies and labor pools are growing. If inter-Korean shipbuilding cooperation develops, South Korea¡¯s industry could secure low-cost laborers without needing to go abroad, providing economic benefits to both North and South Korea, serving as a model of joint management and joint profits. The expansion of the Kaesong Industrial Complex and the linking by rail of Kaesong and Munsan, as well as resolution of issues surrounding communications, entrance and exit, and customs will mean that in the future, investment in the complex by South Korean businesses will grow decidedly.

In conclusion, the recent summit achieved progress on issues that have come up as inter-Korean relations have progressed. Specifically, the issues of peninsular peace and military trust, the resolution of which is vital for the expansion of inter-Korean economic cooperation, was on the summit agenda. By tackling these issues, the latest summit resulted in an agreement to upgrade inter-Korean economic cooperation. Now the two Koreas have a relationship in which peaceful military relations and joint economic projects can prosper. Economic cooperation promotes the building of trust and peace in the military realm, while development of military relations helps further develop economic cooperation, as the two realms push each other toward peace and prosperity. That this peace and prosperity can exist and the two can feed off of one another to further promote both realms is the real meaning of the 2007 Inter-Korean Summit.
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