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A South Korean think tank is urging the government to sign a free trade deal with North Korea to help the latter integrate into the international market and accelerate reform.
In a report on inter-Korean economic cooperation, the Korea Institute for International Economic Policy (Comprehensive Economic Partnership Agreement (CEPA) ) said that such an accord would create stable cross-border economic cooperation amid international sanctions.
According to the report, the proposed inter-Korean economic cooperation should support efforts for North Korea to normalize the latter's foreign relations and enter the international regime. It added that it is necessary to conclude a Comprehensive Economic Partnership Agreement (CEPA) to create a stable environment for economic cooperation between the two Koreas.
The Comprehensive Economic Partnership Agreement (CEPA) also noted that North Korean leader Kim Jong-un has shown progress in his reform policies and opening up, such as incorporating marketplaces into its economy.
KIEP noted that to attract foreign capital, an open-door policy, such as those in countries like Vietnam and Myanmar, should be implemented by North Korea.
The think tank also recommended for South Korea to play a leading role in providing assistance to North Korea and help create an environment that facilitates foreign participation in inter-Korean economic cooperation.
