An inter-Korean joint venture firm was launched for the first time in the North Korean border town of Kaesong Tuesday, the South Korean investor in the project said.
The "Arirang-Taerim joint venture stone company" was established with half of the investment provided by South Korea's granite processing firm "Taerim industrial Co." and the other half by the North's "Kaeson general trading company," Taerim said.
A ceremony to mark the completion of the new company's factory was scheduled to be held in the morning with some 300 government officials and businessmen from the two Koreas in attendance.
The factory is located outside of the Kaesong industrial complex where 13 South Korean manufacturers operate under the protection of a special law ensuring their investment.
Since it agreed on the joint venture with the North in April, Taerim has invested some US$2.95 million for the construction project.
Taerim said the factory will process granite and marble stones collected from North Korean mountains with cheap labor.
With a floor space of 3,300 square meters, the factory will have a capacity of producing some 80,000 tons of stone products annually, it added.
In a related development, the North refused to allow about 10 South Korean lawmakers and related government officials to attend the ceremony in an apparent protest against Seoul's recent decision to halt economic aid to the impoverished North, sources in the South's Unification Ministry said.
Inter-Korean relations turned sour after Seoul refused to give additional economic assistance to North Korea following Pyongyang's launching of seven ballistic missiles in early July.
In retaliation, the North called off government-level meetings with Seoul and cancelled reunions of separated family members.
Seoul, Sept. 26 (Yonhap News)
Inter-Korean joint venture company launched in Kaesong |
