Press Release (September 14, 2010)
Revising the Enforcement Decree of the Inter-Korean Cooperation Fund Act was considered by cabinet members
Following the revision of the Inter-Korean Cooperation Fund Act which was promulgated on March 26, amending its enforcement decree was deliberated at a cabinet meeting on September 14.
l According to Article 8, Section 4 of the revised act, the enforcement decree defines external factors causing damage against which companies can be insured by the Fund and the scope of losses covered.
- Transferring the external factors that were originally put at a Ministry s notification on inter-Korean economic cooperation project insurance to the amended enforcement decree will guarantee insurance coverage by law and allow the insurance to be run in a stable way.
Companies can be insured:
When their invested property in North Korea is confiscated or the property rights are violated
When the North Korean authorities restrict currency transactions or inbound and outbound shipment of goods
When an inter-Korean agreement is broken or not implemented
When the South Korean authorities take some measures to meet their obligation mandated by a treaty or other international laws
When companies get damaged by what the Inter-Korean Exchanges and Cooperation Promotion Committee decides and the Unification minister announces
l The decree distinguishes the cases where insurance coverage should be decided by the minister from ones where it should be decided by the committee, which aims to run the Fund more efficiently and transparently. It also includes the changes in related acts including the National Finance Act.
The revised enforcement decree is going to be put into force from September 27 after being signed by the president.
Once it comes into effect, it will pave the way for more efficient and more responsible management of the Fund and the insurance.
Ministry of Unification