I would like to welcome you all. It appears that autumn has begun as we are enjoying its clear and blue sky. In a few days, we will celebrate our national holiday, Ch'usok. Before I begin my briefing, I wish you all a happy Ch'usok.
Today, I would like to brief you on the creation of a Support Group to the Gaesong Industrial Complex, as well as the current situation surrounding the Gaesong Industrial Model Complex.
Let me begin with the creation of a Gaesong Industrial Complex Support Group.
At a Cabinet-level Meeting held on September 21, our government decided to organize a government-level Support Group to the Gaesong Industrial Model Complex. Once the President approves, we plan to launch the Support Group in the beginning of October. The Gaesong Industrial Complex Support Group will be a support group organized at a government level and is scheduled to operate for a limited period of three years.
The Support Group will contribute to the efficient operation of the Gaesong Industrial projects by establishing various institutions, supporting businesses moving into the complex, managing the transfer of strategic materials, etc. Eight Ministries, including the Ministry of Unification, the Ministry of Commerce, Industry, and Energy, and the Ministry of Construction and Transportation, will participate in the Support Group, which will have four bureaus and 27 staff members.
Next, I would like to explain the current situation surrounding the Gaesong Industrial Model Complex. As you well know, eleven out of fifteen businesses have won the approval for business partnerships and projects. Regarding the approval of the other four, their approval will be decided upon as soon as we conclude our review on the matter of the transfer of strategic materials.
We are currently in the process of conducting an internal review on the transfer of equipments and materials to the North, and cooperation with the United States regarding this issue has been going smoothly. We, therefore, believe that a stable foundation has been laid for the pursuit of our project.
We have also established the organization of an office for the Gaesong Industrial Complex Support Group, facilitating government-level support to the Gaesong Industrial Complex. We also plan to establish a Management Office in early October, which will be responsible for the overall management of the Complex.
In addition, we have simplified some of the procedures such as extending the time of entry to the DMZ and shortening the period of notification before entering the North from three days to 36 hours.
On the institutional improvement, we started our assistance program today to cover losses for those businesses that have moved into the Complex and plan to extend loans from the inter-Korean Cooperation Fund up to 70% of the amount of investment.
Next, I will move on to our interim evaluation.
We believe that the construction of the Gaesong Industrial Model Complex, which began four years after the announcement of the June 15 South-North Joint Declaration, is a new form of economic cooperation project, laying the foundation for moving inter-Korean economic cooperation to a higher level. During the recent visit of our Minister of Unification to the United States, the United States reconfirmed that inter-Korean exchange and cooperation have been contributing to the peace and stability on the Korean peninsula. In particular, the United States was very cooperative regarding the issue of moving strategic materials to the Gaesong Industrial Complex. Moreover, ministries concerned, including the Ministry of Foreign Affairs and Trade, Ministry of Commerce, Industry and Energy, Ministry of Construction and Transportation, etc., have established a system of close cooperation for a smooth and systematic government response. Through these processes, we have developed confidence that the Gaesong Industrial Complex project will be pursued in a successful manner.
On future direction, although inter-Korean dialogue is now at a temporary standstill, the Gaesong Industrial Complex project is moving smoothly. As the government promised to the public, we will spare no effort to make the production of goods possible within this year.
In the future, our government will consider various ways for the successful pursuit of our first-stage development project. Taking into consideration various factors, including the demand for small and medium-sized businesses, we will make our best efforts for the successful launching of the first-stage development project as early as possible.
This concludes my briefing on the Gaesong Industrial Complex project. Should you have questions or need further details on what I have briefed just now, Deputy Director-General for Exchange and Cooperation will be able to provide you with further explanation.
