Abstract
Despite the continuing expansion of volume in South-North Korean trade, trade problems occur due to inadequate mutual payment settlement systems. This study focuses on payment settlement method of South-North Korea trade and types of payment settlement and payment settlement measures in South-North Korean Trade. Considering the current South-North Korean relationship, measures for the adoption of the trade escrow system as an effective means of payment settlement were examined. Related example and measures for applying the systems to South-North Korean trade were analyzed. Under the proposed measure, a public agency, which has public reliability and professionalism regarding South-North trade, should be selected as an escrow agent. Also, the agent should, in alliance with financial institutions, undertake to manage deposits in safe. The government designated escrow agent should conclude an escrow agreement with trust institutions for settlement of payment, and undertake the work of deposit and remittance of trade payment. The proposed escrow system is expected to reduce trade risks for South-North trading firms, and to effectively monitor the flow of payment settlement, thereby enhancing the transparency of trade.
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