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Seoul needs to send 'strategic materials' to North

SEOUL - The government is studying ways for South Korean companies that will move into an industrial complex in the North Korean city of Kaesong, to use production equipment and materials there without violating regulations against the export of "strategic materials" to the communist state, officials said Monday.

North Korea is classified as a "dangerous country" by international and US export control laws, so exports of computers, semiconductors and other electronics materials that could be used for military purposes to the country are strictly banned.

Under the Wassenaar Arrangement, which replaced the Cold War era's Coordinating Committee for Export Control to Communist Areas in 1996, companies of signatory countries that export such items classified as strategic materials would be sanctioned for years.

The regulations deepen worries of the Seoul government because computers with Pentium processors are essential for office work, but are not produced in North Korea.

Among the 15 South Korean companies selected to move into the pilot site of the Kaesong industrial park, which was completed in late June and is to begin production by the end of this year, were semiconductor and electronics companies.

They are awaiting a reply after submitting to the government lists of production equipment and materials to be sent to the pilot site, officials said.

The lists were sent to the South Korea ministries of foreign affairs and unification and the US Department of Commerce.

The US and South Korean governments are scheduled to discuss the strategic materials listed after separate reviews.

"Since the users of the production equipment are South Korean companies, there is no possibility that the materials will be used by North Korea," a government official said on condition of anonymity. "We're studying ways to manage the equipment and materials to be sent to the Kaesong complex in a transparent manner, because there is still room for misunderstanding."

Among the measures under consideration are securing the computers on desks, having the companies use only portable computers and installing a sustainable monitoring system, the official said.

"Above all, (ensuring) transparency is important, and we will fully explain our position to the US side," another government official said. "I think there will be no major problems, because the United States basically doesn't oppose the Kaesong project and will cooperate," he said.

The industrial complex, being built by Korea Land and Hyundai Asan of South Korea, is one of the most prominent symbols of inter-Korean reconciliation set in motion by the first-ever summit of the leaders of the two countries in 2000.

The companies are scheduled to open the main complex to hundreds of South Korean manufacturers in the first half of next year.

(Asia Pulse/Yonhap)


Aug 24, 2004



 

 
   
         
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