Why economic cooperation could be the stumbling block at the inter-Korea summit
South Korea’s support for sanctions aimed at halting North Korea’s nuclear goals limit Seoul’s power to help Pyongyang boost its economy, sources say
The leaders of North and South Korea might stumble over barriers to economic cooperation when they meet for their historic summit in the border village of Panmunjom on Friday, diplomatic sources said.
Although South Korea wanted to revive relations with a North Korea battered by United Nations and US sanctions, Seoul was not expected to present a detailed economic cooperation plan at the meeting, the sources said.
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A source close to the advisory committee for the meeting between South Korean President Moon Jae-in and North Korean leader Kim Jong-un, said Seoul and Pyongyang were likely to draw up a “framework” for cooperation, but were not expected to nail down specifics for an economic partnership.
This is in part because Seoul has endorsed UN Security Council Resolution 2375, which limits its scope for a deal on economic cooperation with Pyongyang.
The measure, passed in September last year, limits the export of crude oil and refined petroleum products to North Korea and bans joint ventures with the hermit state in response to its nuclear and missile provocations.
South Korea would have to allow its allies and the UN to mediate any easing of sanctions before it could set any economic cooperation deal with North Korea.
Another barrier to a detailed economic agreement is the divide over the endgame in “denuclearisation”.