S. Korea mulls supporting potential N. Korean startups

SEOUL, June 20 (Yonhap) -- South Korea's venture minister said Wednesday the government is reviewing directly supporting potential North Korean startups if inter-Korean economic cooperation gets fully under way.

Recent rapprochement on the Korean Peninsula has raised the prospect that the Koreas will promote economic cooperation.

Hong Jong-haak, minister for small and medium-sized enterprises, said South Korea could lend support to make sure global enterprises can be created in North Korea.

He cautioned, though, that "inter-Korean economic projects will begin in earnest once conditions are met, including North Korea's denuclearization."

North Korean leader Kim Jong-un has reaffirmed his commitment to the complete denuclearization of the Korean Peninsula. Experts have said the process of denuclearization could take years.

Inter-Korean ties have markedly improved following summits between President Moon Jae-in and Kim in April and May.

The two Koreas agreed to explore ways to boost economic cooperation, though South Korea said a full-fledged start of inter-Korean economic projects will be possible only after North Korea gives up its nuclear and missile programs.

Currently, North Korea is under tightened U.N. sanctions, as well as U.S. sanctions, for its nuclear and missile tests in recent years, a key hurdle that blocks outside investment in North Korea.

The minister also vowed to try to help smaller South Koreas companies play a key role in the cross-border projects.

"We have demanded a quota for SMEs to lead infrastructure projects, such as railway and road construction, once full-fledged economic cooperation begins," he said.

"While major parts of those businesses would revolve around large companies, it should be the smaller firms who take leading roles in various sectors at a lower level," the minister said.

(END)