Study of Promotion for South Korea's Mineral Resource Cooperation in North Korea

Abstract

ABSTRACT Field of mineral resources development in North Korea by South Korea has to be crafted as a strategy for a cooperative investment. It reduces constraints not only in the development of underground resources but also most of the investments made in North Korea owing to insufficient systems and cost increase generated by lack of infrastructure. The laws or agreements in North Korea related to the regulation of economic cooperation between South and North are one of obstacles. However this paper analyzed considerable obstacles in cooperative investment and researched mineral resources cooperation between South and North Korea is one of win-win strategies for both sides. This paper analyzed three aspects of development cooperation in mineral resources between South and North Korea, which is cooperation based on infrastructure, improvement of laws and systems, and financing. As policy implication, this paper mentioned that more positive attitude toward the mineral resource investments to North Korea are required since generally the resource development business has various risks and institutional barriers. Government should include policies to attract investors and institutional support for reducing investment risks.