December 29, 2007

South Korea to Develop Mineral Resources in North Korea

In another prospect for inter-Korea economic cooperation, South Korea will help in extracting rich mineral resources of North Korea. This will be a win-win development for both sides of Korea since the northern Korea holds 80-90 percent of mineral resources in the Korean peninsula and South Korea, which has to import raw materials from abroad to keep the economy going, will now be able to utilize the resources next door, while helping North Korea expand its natural resources industries. The estimated value of North Korean mineral resources is $2.47 trillion. Historically, Japanese companies had set up mines in northern Korea during the Japanese colonial period, but the division of Korea following the Japanese surrender has cut off the resources-rich north Korea from agriculture-rich southern Korea -- creating an imbalance in natural resources and forcing the two sides of Korea to pursue industrial developments separately.

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