Seoul, Aug 25: South Korean non-ferrous metal producers said on Friday they expected little in the way of quick gains from improved trade opportunities with North Korea.They said North Korea was not thought to have significant deposits of non-ferrous metals, and the country also faced problems such as power shortages and outdated facilities, hampering the exploitation of its resources.South Korea should supply anthracite coal to North Korea where there is a shortage of coal and, consequently, of power, one South Korean industry analyst said.Prospects for greater trade and investment with the North improved with the landmark summit between the leaders of the two Koreas in June. (Reuters)
But South Korea's non-ferrous metal traders said North Korea's old facilities and scarce resources would mean little benefit for them.South Korea imported 12,756 tonnes of refined zinc from the North in 1999, compared with 52,607 tonnes in 1993, Seoul's Korea Trade Information Services data showed.
South Korea imported only 4,867 tonnes of North Korean refined zinc in the first half of this year. (Reuters)
One industry official said South Korean firms could invest in North Korea's outdated plants and infrastructure.
"We may help North Korea renovate zinc refinery or support them to construct infrastructure, if there are chances to do that," a senior official with Korea Zinc Co Ltd told Reuters.
Chung Woo-jin, a researcher with Korea Energy Economics Institute, said: "South Korea should help the North renovate electric power facilities in the near term."
He said the South should supply anthracite coal to the North which heavily depends on thermal electric power generation but suffers from a shortage of coal, while the South Korean government has stockpiled about 10 million tonnes of coal.
In the mid to long-term, Chung said the two Koreas should share electric power and cooperate to exploit energy resources.
Trade, including aid, between the two Koreas totaled $202.8 million in the first half of the year, up 22.9 percent from the same period a year earlier, the official said.
The bulk of that was South Korean exports and aid for the North, while the North's $64.5 million in export in the first half included goods made on consignment for companies in the South.
The Hyundai Group, South Korea's largest conglomerate, said on Wednesday it planned to start work on a big industrial complex in the North later this year. (Reuters)
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