Press Reference (July 2, 2010)
A bill to revise the enforcement decree of the Inter-Korean Cooperation Fund given advance notice
The Ministry of Unification gave advance notice of a bill on July 2 to change the enforcement decree and the enforcement regulation of the Inter-Korean Cooperation Fund Act. It is a follow-up measure of the revision of the act, which was made public on March 26.
Major changes in the enforcement decree
l In line with Article 8, Section 4 of the revised act, the decree would stipulate the scope of insurance coverage against losses cased by the external factors affecting South Korean companies operating in North Korea.
- Transferring the coverage criteria which were originally written in a notice of the ministry to the enforcement decree is expected to strengthen legal protection and reliability of the insurance.
The Inter-Korean Cooperation Fund would finance insurance coverage for South Korean companies affected:
- When their assets and facilities in North Korea are confiscated or their property rights are violated.
- When the North Korean authorities restrict currency transactions or importing and exporting goods.
- When an inter-Korean agreement is abolished or not carried out.
- When the South Korean authorities take measures in order to abide by treaties or other international laws and regulations.
- When the Minister of Unification notifies the public of what a consultative meeting on promotion of inter-Korean exchanges and cooperation decides.
l The decree would separate what must be decided by the Minister from what must be decided by the consultative body when the Fund s financial support is pursued. It would also specify when the Fund can be entrusted, allowing the Fund to be managed in a more transparent and more efficient way.
Major changes in the enforcement regulation
l With the decree changed, the enforcement regulation would also be modified reflecting the way the fund has been managed.
- The process and scope of entrustment originally written in the rules on managing the Fund are transferred to the enforcement regulation.
- What must be determined first to get the Fund s financial support would be well adjusted.
The bill to revise the decree and the regulation would be discussed and reviewed by related government agencies, and put into effect from September 27.
Once the revised decree and the regulation are fully enforced, they are expected to improve the business environment for South Korean companies operating in North Korea and enhance efficiency and accountability in managing the Fund.
Ministry of Unification