Second Repayment of Minerals for Light Industries Raw M
Second Repayment of Minerals for Light Industries Raw Material Loan to North Korea Arrived at Incheon Port
The second repayment of minerals (approx. 500 tons of North Korean zinc lumps) for light industries raw material loan to North Korea in 2007 (worth 80 million dollars) arrived at Incheon Port on Jan. 4.
?The first repayment (498 tons of zinc lumps) arrived at Incheon Port on Dec. 14, 2007 and was acquired by a South Korean company (GMR).
Since the second repayment of minerals has arrived, 3% of repayment worth 2.4 million dollars for light industries raw material loan has been completed as the two Koreas agreed on Jul. 7, 2007.
*According to detailed agreement on the implementation of agreement on light industries and joint development of natural resources, the two Koreas agreed that minerals worth 1.5% of raw materials loan would be repaid in two installments at a time when 50% and 100% of raw materials are provided, respectively.
The minerals that the North has repaid will be sold to South Korean companies through an auction conducted by Public Procurement Service, and the money from the sale will be sent to Inter-Korean Cooperation Fund through the Export-Import Bank of Korea to repay the loan of light industries raw material provided to North Korea.
*At a bidding of Public Procurement Service on Dec. 26, 2007, Now Cooperation Co., Ltd (CEO: Seo Seung-u) became the bid winner among two domestic bidders.
As cooperation projects in the fields of inter-Korean light industries and development of natural resources are carried out through commercial transaction method in mutually beneficial way, they are expected to contribute to the creation of a new model of economic cooperation as well as the formation of a Korean national community.
A total of 3% repayment in two installments worth 2.4 million dollars has great significance in that it is not only the faithful implementation of inter-Korean agreements but also the first repayment by North Korea to South Korea since the South Korean government began providing economic assistance in loans.