KITA News and Reports
  • 90% Trade Companies, “Improved Inter-Korean Relations Will Help Economy and Business”
    2018-06-25

    90% Trade Companies, “Improved Inter-Korean Relations Will Help Economy and Business”

     

    - Lack of information and changes in policies are concerned… sustainable and stable trade environment is required -

     

      

    It appears that nine out of ten Korean traders are expecting that the improvement of inter-Korean relations will bring new business opportunities. At the same time, they all agree that a sustainable and stable environment must be established in order to revitalize trade between the South and the North.

     

    According to the recent survey conducted by the Institute for International Trade (President, Shin Seung-kwan) of the Korea International Trade Association onTrade Industry’s Perspective on Trade between the South and the North’, 46.9 percent of the 1,200 respondents said that the economic effect of the improved inter-Korean relations would be 'very positive' and 39.8 percent answered 'positive'. 85.1 percent of the participants said that it would be "helpful for business".

     

     

    The trade industry expects the most (39.2%) ‘to create business opportunities such as inter-Korean trade, entry into special economic zones, etc.’, followed by ‘possibility of using Northeast Asian logistics through inter-Korean transport links’ (23.2%) and ‘resolving Korea discount with the relaxation of tensions on the Korean peninsula’ (15.5%).

     

    Regarding the timing of resuming inter-Korean trade, 31.7 percent said ‘within 4 ~ 5 years’ taking somewhat cautious position. The most promising areas for resuming trade are the ‘infrastructure, construction and resource industries’ (35.1%), followed by ‘electricity, electronics, communication and machinery’ (17.3%), ‘tourism’ (15.3%), and ‘textiles, clothing, household goods (13.5 %).

     

    When it comes to conducting businesses in North Korea, the companies surveyed were concerned about ‘lack of information and education on North Korean business environment’ (22.0%), ‘control interference of North Korean authorities’ (18.6%), and ‘the concerns about the changes in the South Korean government's North Korea policy (13.7%) and ‘the possibility of resuming sanctions by the international community, including the United States and the United Nations’ (11.6%).

     

    List
    Prev
    Enter into Russian Market with EUAU FTA
    Next
    KITA Held ‘New Distribution Strategy Seminar’ with Alibaba Group
KITA
Family Site