Seoul to spend 1.51 tln won on inter-Korean cooperation next year

SEOUL, Dec. 14 (Yonhap) -- South Korea said Sunday it will use about 1.51
trillion won (US$1.10 billion) in 2009 to facilitate economic and humanitarian
exchanges with North Korea, including 400,000 tons of rice aid to the
impoverished state.
The amount represents an 8.6 percent increase from the 1.39 trillion won
earmarked for the inter-Korean cooperation fund this year, the Unification
Ministry said. The National Assembly on Saturday passed a 284.5 trillion won
budget bill for 2009.
The parliament, however, cut the amount of state contribution to the fund to 350
billion won from 650 billion won originally sought by the government, the
ministry said, adding the government will fill the slashed amount with part of
the fund to be carried over from this year.
Seoul used only about 15 percent, or 240 billion won, of the money allocated for
inter-Korean cooperation fund this year because of cross-border political and
other tensions.
Previous South Korean administrations led by liberal leaders Kim Dae-jung and Roh
Moo-hyun had sent aid to Pyongyang annually in the form of rice and fertilizer.
Direct South Korean food to the North aid has been suspended since the
conservative government of President Lee Myung-bak took office in February.
According to the ministry, 640 billion won of the total will be spent on sending
humanitarian aid to North Korea next year, which will include 400,000 tons of
rice and 300,000 tons of fertilizer.
About 360 billion won will be used to promote inter-Korean economic projects,
with the remainder to be used for job-training and settlement for North Korean
defectors. The amount is down 51 percent from this year.
The sharp drop reflects the Lee government's policy not to expand inter-Korean
economic cooperation until North Korea abandons its nuclear ambitions.
The two Koreas remain technically at war as the 1950-53 Korean War ended in a
truce, not a peace treaty.
hayney@yna.co.kr
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