The Korea Institute for International Economic Policy (KIEP), an adjunct of the Ministry of Finance and Economy, has proposed to the North the establishment of an inter-Korean information exchange body and economic research institute. The proposal, designed to accelerate business relationships between the two Koreas, was addressed to North Korea's Asia-Pacific Peace Committee in a letter the then KIEP Chairman Lee Kyong-tae sent in July last year to Kim Yong-sun, secretary of the Workers' Party in charge of affairs involving the South and concurrent chairman of the APPC.

In the letter titled "A Recommendation for Cooperation between the Asia-Pacific Peace Committee and the Korea Institute for International Economic Policy," KIEP proposed "an information exchange and cooperation body be established so that economists and businessmen of the North and South may conduct their inter-Korean tasks and business in an efficient and dynamic manner." Chairman Lee was transferred as ambassador to the Organization for Economic Cooperation and Development (OECD) in December last year.

KIEP is also learned to have proposed the establishment of an inter-Korean research institute on external economic affairs in collaboration with the North's Trade Ministry for the purpose of conducting research on alternatives to major world economic issues. The proposal was contained in a letter the institute addressed to North Korean Foreign Minister Baek Nam-sun during the latter half of last year.

In response, Pyongyang has instructed the National Economic Cooperation Federation, under the jurisdiction of the Trade Ministry, to look into the proposed inter-Korean information exchange and cooperation body. KIEP has been in touch with the North's federation through their respective Beijing offices. "In the wake of the ruptured 6th round of inter-Korean ministerial talks, the North's National Economic Cooperation Federation asked us to wait for the time being," said a KIEP official.

In his New Year press conference in January 2000, President Kim Dae-jung proposed consultations between research institutes of the North and South on the "establishment of inter-Korean economic community."

(Lee Kyo-kwan, haedang@chosun.com )