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(23-05 National Assembly Future Agendas) Analysis of Structure of Governance for Inter-Korean Exchange and Cooperation in the Post-Cold War Era

Date : 2023-10-16 item : 23-05 National Assembly Future Agendas P.I : Kim Tae-kyung

(23-05 National Assembly Future Agendas) Analysis of Structure of Governance for Inter-Korean Exchange and Cooperation in the Post-Cold War Era


■The Need to Analyze the Legal Framework and Governance Structure for Inter-Korean Exchange and Cooperation in the Post-Cold War Era

○In the post-Cold War period, North Korea occupies a unique dual position according to South Korean law: an “anti-government organization” pursuant to the Constitution of the Republic of Korea (Article 3) and National Security Act and a counterpart of reconciliation, peace, and cooperation pursuant to the Development of Inter-Korean Relations Act and Inter-Korean Exchange and Cooperation Act.

-In addition, the Korean legal framework recognizes the relationship between South and North Korea differently as a hostile antagonism, tacit recognition, and cooperation.

*Constitution of the Republic of Korea, Article 3: The territory of the Republic of Korea shall consist of the Korean peninsula and its adjacent islands.

*National Security Act, Article 2 (1) (Definition): Within the scope of this Act, the term "anti-government organization" refers to any domestic or foreign organization or group that falsely assumes the guise of a government entity or seeks to instigate a rebellion against the State, and is structured with a defined command and leadership system.

*Inter-Korean Exchange and Cooperation Act, Article 1 (Purpose): The objective of this Act is to facilitate peace and unification on the Korean Peninsula by outlining essential provisions to enhance mutual exchange and cooperation across the south and north of the Military Demarcation Line.

*Development of the Inter-Korean Relations Act:

Article 1 (Purpose): The aim of this Act is to establish guidelines for essential relations between South and North Korea, as well as requirements to foster the development of inter-Korean relations, in alignment with the objective of achieving peaceful unification as outlined in the Constitution of the Republic of Korea.

Article 2 (1) (Basic Principles): The enhancement of inter-Korean relations should be advanced, striving for the mutual prosperity of both Koreas and the peaceful unification of the Korean Peninsula. This should be grounded in the principles of independence, peace, and democracy.

Article 3 (1) (Relations between South and North Korea): The relationship between South and North Korea is not defined as one between independent nations, but rather as special, temporary relations formed in the process of working towards unification.

○With these different recognitions and statuses in the legal framework, the inter-Korean cooperation governance has experienced a cycle of progress and stalemate.

○The primary research looks into the overview of the governance structure for cooperation between South and North Korea and uses the overview as an evaluation standard for inter-Korean cooperation projects with mid-and long-term sustainability.

-Reflecting this overview, the secondary research conducts interview-based evaluations of participants of the projects that have been carried out for the past 30 years.

■The Overview of Governance for Inter-Korean Exchange and Cooperation in the Post-Cold War Era

○Governance for economic cooperation

-The prototype was the combination of the government’s approval for private entities engaging in investment business including trade and economic cooperation and the financial support from the Inter-Korean Cooperation Fund including loans and insurance.

-Private entities led cooperative activities in the legal and regulatory framework set up by the government, but not to the scope of substantial public-private cooperation.

-Development and operation of the Gaeseong Industrial Complex and cooperative projects in light industry-underground resources got into full swing, and the economic cooperation governance changed qualitatively.

-Delegation of responsibilities for developing the infrastructure and operating the complex to the government and the underground resource development projects in North Korea led to the inception of the Kaesong Industrial District Management Committee and the South-North Korea Exchanges and Cooperation Support Association, respectively, and, semipublic organizations emerged as key actors in governance.

○Governance for sociocultural cooperation

-This governance framework evolved in response to a marked expansion of private organizations dedicated to fostering grassroots interactions, exchanges, and collaborative efforts, a momentum that gained significant impetus following the pivotal inter-Korean summit on June 15, 2000. Its development was notably catalyzed by the Ministry of Unification's endorsement and support of inter-Korean exchange and cooperation initiatives.

-In fact, the legal framework exhibits, rather than the established governance, a cycle of alternating headwinds and tailwinds for exchange and cooperation projects initiated and developed by private entities depending on the states of the relationship between South and North Korea.

-The Inter-Korea Historian Association and the Gyeoremalkeunsajeon Committee (Unabridged and Unified Korean Dictionary Committee) operate with interests that remain largely unaffected by political risks. Their governance structure, rooted in trust, has been solidified through ongoing dialogues among private organizations, characterized by a balanced interplay of project demands and capabilities.

○Governance for humanitarian cooperation

-After the termination of the policy to unify communication channels in the 1990s, governance for humanitarian cooperation entered a transitional phase.

-The Korean Red Cross was the sole channel of humanitarian assistance to North Korea, but the policy change allowed private entities to carry out function-based projects such as material aid and development assistance projects in consultation with the State.

-With the increasing number of assistance projects for North Korea, the establishment of the Korean Public-Private Council for Cooperation with North Korea, which operated under the auspices of the relevant ministry and organizations within the Korean NGO Council for Cooperation with North Korea opened a window to policies to allow the private sector to participate not only in project execution but also policy direction. However, since 2011, the participation has been heavily influenced by the political dynamics between South and North Korea.

■Summary and Implications

○Since the adoption of the Agreement on Reconciliation, Nonaggression, and Exchanges and Cooperation between the South and the North (the Inter-Korean Basic Agreement), the two Koreas have experienced diversified development in the fields of economic, sociocultural, and humanitarian cooperation, and the continued public-private cooperation has formed and evolved the unique governance structure.

○The relationship between South and North Korea, however, has exposed its fundamental limitations where the escalated political, military, and security tension and distrust can overshadow continuous exchanges and cooperation in other fields.

○In the medium and long term, in order to enhance the sustainability of inter-Korean exchange and cooperation projects based on domestic political stability and acceptance, it is imperative to establish a governance structure that embraces private entities with active participation, as well as aligning the legal frameworks of the two Koreas systematically to foster an environment of coexistence and peace.

-The secondary research will include an evaluation of inter-Korean exchange and cooperation projects based on project participants' interviews.