South-North-Russia 'New Northern Cooperation Year'... Developer Council Accelerates

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The government plans to designate this year as the "Year of New Northern Cooperation" to enhance collaboration with northern countries.

According to related ministries on the 26th, the government intends to actively promote projects to achieve tangible results from the New Northern Policy. A developer consultative body will be established between the Korea Overseas Infrastructure & Urban Development Corporation (KIND) and Russia's Direct Investment Fund (RDIF) to advance transportation infrastructure such as railroads and roads, as well as plant projects connecting Korea, North Korea, and Russia. A developer refers to an entity that discovers and plans new development methods for specific regions and infrastructure.

First, the government will create the "9 Bridges Cooperation System 2.0," which adds finance, culture, and innovation to the existing cooperation framework covering nine sectors with Russia: railroads, electricity, shipbuilding, gas, ports, Arctic routes, agriculture and forestry, fisheries, and industrial complexes. Additionally, a joint investment fund for materials, parts, and equipment between Korea and Russia will be established, and over 270 events in economic, cultural arts, and knowledge exchange fields will be conducted.

The Korea-China Economic Ministers' Meeting will also be held in Korea in March. Efforts will be made to promptly conclude follow-up negotiations on services and investment under the Korea-China Free Trade Agreement (FTA), and cooperation in culture, tourism, content exchange, and new industries will be strengthened.

The government has set a goal to accelerate the advancement of the New Southern Policy, including the final conclusion of the Korea-Philippines FTA. The region, which shows an annual growth rate of around 5%, aims to increase trade volume to 200 billion dollars by 2020. Achieving this target means securing a market comparable in size to China.

Furthermore, negotiations will be pursued for joining as an associate member of the Pacific Alliance, a regional economic union formed by Mexico, Peru, Colombia, and Chile. Associate membership implies concluding bilateral FTAs with Pacific Alliance member countries.

A government official stated, "As President Moon Jae-in emphasized this year as the Year of New Northern Cooperation, active exchanges are expected not only in the economy but also in cultural and social fields."