Inter-Korean relations

The Inter-Korean relations (남북관계/南北關係) has experienced roller coaster-like ups and downs - from hostile confrontation and terrorist attack to summit meeting - since the Korean War.

The Korean peninsula was devided by the 38th parallel into the North and the South just after the surrender of Japan, which had occupied the peninsula for 36 years, at the end of World War II. So the 'Inter-Korean relations' means, as the situation may be, the conflict, exchange and cooperation of the Capitalist South and the Communist North.

Key words
Inter-Korean cooperation, June 15 Joint Declaration, economic cooperation agreement

Brief History
Ever since the South Korean Red Cross delegates met with the North Korean counterpart in 1971 for the first time in the cold war era, the two Koreas increased the exchange of goods and services, and allowed limited visits each other.

The Inter-Korean relation was put into high gear in July 7, 1988, when the South Korean government disclosed "Special Declaration for the Self-Esteem of the Nation and the Unification of Prosperity". As the inter-Korean cooperation developed in every sector, the existing legal system governing such relations turned out to lag behind. In August 1990, the South Korean government hurried to establish the Inter-Korean Exchange and Cooperation Act. A series of significant events took place on the Korean Peninsula as witnessed below: At present, South Korea is making the important market largest next to China for the North Korean suppliers. The Gaeseong Industrial Complex, where more than one hundred South Korean companies are using North Korean labor to manufacture goods, has been the symbol of the Win-Win relationship between two Koreas.
 * Adoption of the Inter-Korean Basic Agreement in December 1992;
 * Taking measures to promote the Inter-Korean economic cooperation in April 1998;
 * The start-up of Mt. Geumgang tour by sea in November 1998;
 * Adoption of the Inter-Korean Mutual Declaration during the summit meeting in June 2000;
 * Ground breaking of Gaeseong Industrial Complex in June 2003;
 * Record making of over one million visitors of Mt. Geumgang in June 2005; and
 * The ever-increasing investment in the North by South Korean companies, e.g., 1,151 million dollar investments during the period from 1996 to June 2003 (including KEDO-related projects)

Summit Meetings
After a long period of military confrontation in the Cold War era, the Sunshine Policy initiated by President Kim Dae-jung enabled the first summit meeting between the two Koreas. Following various diplomatic meetings between the North and South, South Korea President Kim visited Pyongyang for the first time.

On June 15, 2000, two leaders of North and South Korea adopted the June 15th North–South Joint Declaration. As a result of the talks, numerous separated families from the North and the South had meetings with their family members in Pyongyang and Seoul for the first time since the Korean War.

The second North-Korea Summit was held again in Pyongyang in October 2007. At that time, President Roh Moo-hyun visited North Korea crossing the border line on foot then by car. However, it took place just before he stepped down from the Presidency. So President Roh's agreements with Chairman Kim could not be fully implemented by the Lee Myung-bak government.

Legal background
As the inter-Korean cooperation developed in every sector, the existing legal system governing such relations turned out to lag behind. In August 1990, the South Korean government hurried to establish the Inter-Korean Exchange and Cooperation Act (남북교류협력에 관한 법률). In terms of law, some discrepancies between the Act and the real world often create obstacles in Inter-Korean relations.

For further information, see the Inter-Korean exchange and cooperation.

Though the Inter-Korean relations was initially regarded as bilateral, the Inter-Korean agreement was treated as a mere gentlemen's agreement, but later as an international treaty. In this connection, the Act on the Advancement of the North-South Relations (남북관계발전에 관한 법률), effective from June 30, 2006, provides for such relations for the first time.

Act on the Advancement of the North-South Relations
This Act has made it legally possible to execute the Inter-Korean agreements, to formulate the Inter-Korean relations on a legitimate and consistent ground, to obligate the government officials with respect to specific matters, etc. Thus government policy toward North Korea shall be conducted on a transparent basis.

The gists of the Act are as follows:
 * The nature of the Inter-Korean relations is the transitional specific relationship toward unification inside a nation. Art. 3.
 * Government is obliged to advance the peace in the Korean Peninsula, to implement the Korean Economic Community, to restore the national homogeneity, to solve humanistic problems, to assist the North Korea, and to strengthen the cooperation in the international community. Arts. 6-11.
 * The Ministry of Unification shall establish the basic plan to advance the Inter-Korean relations every five year subject to the deliberation of the Inter-Korean Relations Advancement Committee, and obtain the consent of the National Assembly if budget is necessary. Arts. 13-14.
 * The Inter-Korean agreement shall be executed and ratified hereunder, and consented by the National Assembly if it causes fiscal burden and/or is related with legislative issues. Art. 21.
 * The Inter-Korean agreement applies to the North and the South Korea, and the President may suspend a part or all of the said agreement on a certain account subject to the consent of the National Assembly if such agreement has been once consented by the National Assembly. Art. 23.

June 15 North–South Joint Declaration
Here is the official translation of the above June 15 Joint Declaration:

In accordance with the noble will of the entire people who yearn for the peaceful reunification of the nation, President Kim Dae-jung of the Republic of Korea and National Defense Commission Chairman Kim Jong-il of the Democratic People's Republic of Korea held a historic meeting and summit talks in Pyongyang from June 13 to 15, 2000.

The leaders of the South and the North, recognizing that the meeting and the summit talks were of great significance in promoting mutual understanding, developing South–North relations and realizing peaceful reunification, declared as follows:
 * 1) The South and the North have agreed to resolve the question of reunification independently and through the joint efforts of the Korean people, who are the masters of the country.
 * 2) For the achievement of reunification, we have agreed that there is a common element in the South's concept of a confederation and the North's formula for a loose form of federation. The South and the North agreed to promote reunification in that direction.
 * 3) The South and the North have agreed to promptly resolve humanitarian issues such as exchange visits by separated family members and relatives on the occasion of the August 15 National Liberation Day and the question of unswerving Communists serving prison sentences in the South.
 * 4) The South and the North have agreed to consolidate mutual trust by promoting balanced development of the national economy through economic cooperation and by stimulating cooperation and exchanges in civic, cultural, sports, health, environmental and all other fields.
 * 5) The South and the North have agreed to hold a dialogue between relevant authorities in the near future to implement the above agreements expeditiously. President Kim Dae-jung cordially invited National Defence Commission Chairman Kim Jong-il to visit Seoul, and Chairman Kim Jong-il will visit Seoul at an appropriate time.


 * (signed) Kim Dae-jung, President, The Republic of Korea


 * (signed) Kim Jong-il, Chairman, National Defence Commission, The Democratic People's Republic of Korea

Inter-Korean Economic Cooperation Agreements
In line with the historic June-15 North-South Joint Declaration in 2000, South and North Korea signed four major agreements on Inter-Korean economic cooperation in December 2000. Their adoption was a critical milestone in economic cooperation as it formalized and institutionalized economic cooperation.

With the agreements in place, businesses involved in inter-Korean economic cooperation expected some real benefits but later were disappointed. It's because a series of geo-political issues including North Korea's nuclear program made it difficult to implement those agreements in a proper manner. Another reason for the lackluster performance was the nature of the agreements: they consist mainly of generalized, abstract legal regulations, and lack necessary measures for implementation.

Two rounds of working-level talks were held to establish an institutional mechanism for economic exchange and cooperation (Seoul in September 2000; and Pyongyang in November 2000). On November 11, 2000, the two Koreas adopted and tentatively signed four major agreements on inter-Korean economic cooperation:
 * Agreement on Investment Protection (투자보장 합의서) between the South and the North;
 * Agreement on Clearing Settlement (청산결제 합의서) between the South and the North;
 * Agreement on Prevention of Double Taxation of Income (이중과세방지 합의서) between the South and the North; and
 * Agreement on Procedures for Resolution of Commercial Disputes (상사분쟁해결 합의서) between the South and the North.

At the 4th Inter-Korean Ministerial Talks held in Pyongyang on December 16, 2000, chief delegates from the two Koreas formally signed the four agreements. However, introducing follow-up measures to provide a legal basis for the agreements was a challenge. Progress was delayed by differences between various South Korean government agencies, not to mention between the two Koreas.

After little progress, the South Korean government finally decided to treat the agreements as treaties. After heated discussions at the South Korean National Assembly, they were finally ratified on June 30, 2003. Meanwhile, the four agreements appear to have been approved by the Presidium of North Korea’s Supreme People’s Assembly on July 24, 2003.

After written copies of the agreements were exchanged at Panmunjom on August 20, 2003, they officially took effect.

Inter-Korean relations in the Post-Kim Jong-il Era
North Korean Supreme Leader Kim Jong-il died of heart attack on December 17, 2011. His death was so abrupt that his successor Kim Jong-un could take over power as Kim Jong-il had done on a stable basis under the dictatorship of Kim Il-sung.

North Korea watchers say his unexpected death could lead to power struggle between his son and successor Kim Jong-un and military power groups in a few years ahead.

See more
You can find further information about North Korea at:
 * UniKorea Information Center on North Korean
 * North Korean Law (statutes) Library
 * Yonhap News Agency
 * U.S. Department of State