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(LEAD) Biz bodies hail inter-Korean deal, vow more economic cooperation

All Headlines 15:12 August 25, 2015

(ATTN: ADDS response from KCCI in last 2 paras)

SEOUL, Aug. 25 (Yonhap) -- South Korea's business community welcomed a landmark deal Tuesday on defusing inter-Korean tensions, pledging to rev up efforts to expand economic ties with North Korea.

After days of intensive high-level talks, the Koreas agreed to ease tensions sparked by Pyongyang's landmine attack that injured two South Korean soldiers early this month.

Calling the agreement a great relief, the Federation of Korean Industries (FKI), the lobby for South Korea's family-run conglomerates, said it will push ahead with overall plans for boosting economic cooperation with North Korea

"North Korea's latest provocations were a source of concern because they could hamper inter-Korean economic cooperation," an FKI official said. "We are greatly relieved at the news."

Although it's unlikely that Seoul-Pyongyang economic cooperation will make immediate headway, the FKI will gradually go ahead with the necessary steps, including the establishment of economic offices in the capitals of both Koreas, he added.

The agreement also came as good news to South Korean firms currently doing business at the inter-Korean industrial complex in the North Korean border town of Kaesong.

"The firms underwent a lot of troubles amid the worsened relations between the two Koreas, so (now that they have reached a deal,) we are hoping for improved business conditions down the road," said Jeong Gi-seob, chairman of the association of 124 South Korean small and medium-sized companies operating at the zone.

The South Korean companies operate factories at the industrial park, the last remaining symbol of inter-Korean reconciliation, employing about 54,000 North Korean workers.

The Korea Chamber of Commerce and Industry (KCCI) also promised to play its part in promoting economic relations with the North following the latest agreement.

"The business community will redouble efforts to lay the practical groundwork for the mutual development of the two Koreas," a KCCI official said. "We also hope that a thaw in inter-Korean relations will lead to more exchange as well as the normalization of economic ties."

yjkim8826@yna.co.kr
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