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...natural resources themselves." North Korea, on the other hand, is virgin economic territory desperate for capital. "They need to repair the railroads and roads, as well as container berths at the port. And power is the really big issue." This, says Yoon, is where the South Korean government under Lee Myung Bak could come in. "We've had discussions with the government; the investment needed [for infrastructure] is of the size that only with government involvement could it be done...

Author: /time Magazine | Title: Prying Open Pyongyang | 1/9/2008 | See Source »

...rail link opened between Seoul and the Kaesong Industrial Complex across the DMZ in the North, and work continues on a variety of other infrastructure projects, including extending the rail line all the way to the North's border with China. Not even South Korea's newly elected President Lee Myung Bak, a political hard-liner when it comes to dealing with Pyongyang, seems willing to break the increasingly warm embrace. "If North Korea opens up, and proceeds to dismantle its nuclear program, the South Korean government can increase and deepen its economic cooperation with the North,'' says...

Author: /time Magazine | Title: Prying Open Pyongyang | 1/9/2008 | See Source »

...Indeed, when Lee is inaugurated next month, he will assume office at a crucial time for the Korean peninsula. In October, outgoing South Korean President Roh Moo Hyun met in Pyongyang with Kim Jong Il, marking just the second inter-Korean summit ever. The North may also be on the brink of a historic peace agreement with the U.S. - one that President George W. Bush, in his last year in office, appears to want desperately in order to shore up his controversial foreign-policy legacy. A deal between Washington and Pyongyang - predicated on the North verifiably giving up its nuclear...

Author: /time Magazine | Title: Prying Open Pyongyang | 1/9/2008 | See Source »

...Should North Korea shed its pariah status, many South Korean businessmen believe Lee, a former CEO of Hyundai Engineering and Construction, one of South Korea's largest companies, will push aggressively for closer commercial ties, for the simple reason that it makes economic sense. The North is seen by executives as a potential bulwark against Chinese competition because it offers cheap labor, access to relatively untapped natural resources, lower transportation costs, and shared culture and language. "For the South Korean economy, it's a win-win situation," says outgoing Minister of Unification Lee Jae Joung...

Author: /time Magazine | Title: Prying Open Pyongyang | 1/9/2008 | See Source »

...that's nothing compared with the overtures Seoul has been playing for its Northern cousins. The centerpiece of commercial ties between the two countries remains the Kaesong industrial zone. Opened in 2003, the district is now home to 65 South Korean-run factories employing 20,000 North Koreans. Lee Im Dong, general manager of the Kaesong Industrial Council, says hundreds of other companies plan to set up plants there when a second phase opens in early 2010. A rush is anticipated in part because, at the October summit between Roh and Kim, the North agreed to key improvements...

Author: /time Magazine | Title: Prying Open Pyongyang | 1/9/2008 | See Source »

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