Inter-Korean shipbuilding survey

The two Koreas agreed to conduct a joint geological survey in Anbyeon and Nampo in North Korea in the first quarter of next year as part of preparatory measures to build shipbuilding yards there. The agreement came after the first meeting of the inter-Korean committee on shipbuilding and marine cooperation held recently in Busan.

However, the committee failed to agree on ways of improving the investment environment in the shipbuilding cooperation areas such as customs clearance, transportation and telecommunications, which were main items on the agenda for discussion. The two sides failed to narrow their differences as the South stuck to its improvement of the investment environment plan, while the North strongly demanded early notification of investments before discussing the environment, according to officials of the Unification Ministry. “The North refused to agree on customs clearance, transportation, and telecommunications services unless it is informed of the exact investment size in advance,” a ministry official said. “The time and conditions seem not yet ripe for full cooperation in maritime affairs.”

The committee’s second meeting will be held in Gaeseong in March and the members of the committee will continue discussions on shipbuilding and maritime cooperation.

The talks are a follow-up measure from the inter-Korean summit held in Pyongyang in early October, which agreed on the construction of shipbuilding yards. The inter-Korean prime ministers’ meeting in November agreed to begin construction of a shipbuilding factory in Anbyeon in the first half of 2008 and to modernize a ship repair factory in Nampo as soon as possible.