Money Matters, Simplified.
Korean cross border traffic restored, industrial activity resumed
by Kimberly Reid - September 1, 2009 - comments
In December, South Korea had limited access to North Korea’s border city, Kaesong, because the relations between the two nations had been severed
New York, September, 1: In a convincing sign of improved relations between the two countries, North and South Korea have resumed regular cross boarder traffic, thus ending nine months of restricted industrial traffic.
Border traffic "was normalized to the level prior to December 1st last year", Unification Ministry spokeswoman Lee Jong-joo told reporters. "Entry by South Koreans to the North is smoothly underway."
The boarder will now open 23 times a day, up from 6 times a day earlier. A maximum of 250 of personnel and 150 vehicles will be allowed to cross the border for each trip.
Boost to industry
In December, South Korea had limited access to North Korea’s border city, Kaesong, because of the severed relations between the two nations.
The latest move will enable easy movement of traffic across the heavily-fortified border, connecting the two countries’ jointly-run industrial park in Kaesong.
South Korea has 110 factories located in the industrial area that provides employment to approximately 40,000 North Korean workers.
Though the project was on the verge of collapsing, the visit by Hyundai Asan chairwoman Hyun Jeong-eun to North Korea this month has restored business relationships between two countries. All tourism and business projects between the Koreas are managed by a subsidiary of Hyundai.
Han Maeng-woo, a 53-year-old South Korean worker, was quoted by Associated Press as saying, "I don't have any sense of uneasiness." He added that the company he worked in will be able to revive business that had been suspended due to the tension between the two Koreas.
Strengthening ties
North and South Korea have been in conflict since the end of Korean War in 1953. Though the two nations had made efforts to resume peace, but the rapprochement talks took a hard hit when Lee Myung-bak took office as the South Korean President.
But lately, the several initiatives by the two sides point at a thaw in strained relations. Last week, the two nations had a first high level cross boarder talks in two years.
The countries have also reached an agreement to reunite families separated during the Korean War. The two sides will exchange names of people seeking relatives across the two sides.
North Korea is also hoping to strengthen its ties with United States. “We can ease tensions and remove the danger of war on the peninsula when the United States abandons its hostile policy and signs a peace treaty with us,” North Korean leader Kim Jong-il said in a commentary carried on Pyongyang Radio, Monday.