The Possibility of South Korean Companies in North Korea

by Dana Marie / Aug 10, 2015 09:26 AM EDT

South Korean unification minister Ryoo Kihl-Jae (R) shakes hands with Hwang Pyong-So (L) vice chairman of North Korea's National Defense Commission during a a surprise visit to South Korea to attend the closing ceremony of the Asian Games

(Photo : By:Chung Sung-Jun | Getty Images News) South Korean unification minister Ryoo Kihl-Jae (R) shakes hands with Hwang Pyong-So (L) vice chairman of North Korea's National Defense Commission during a a surprise visit to South Korea to attend the closing ceremony of the Asian Games

The Korean Chamber of Commerce and Industry (KCCI) has rolled out a survey involving 500 companies in South Korea, and 87% has expressed their interest in setting up a business in North Korea after both nations unify. It should be noted that there have been talks of a possible Korean reunification, which have started on June 2000.

According to KCCI, "Inter-Korean economic cooperation would help reduce the cost for unification". This is why the organization has come up with the survey, they want to know if South Korea's small to large companies are willing to do business in the North. It believes that transactions at private levels have to be encouraged and increased.

The poll's results state that 31% of the participating companies show active interest in pushing transactions with other entrepreneurs in the Democratic People's Republic of Korea (DPRK) or commonly called North Korea. On the other hand, 56% say they will only do business 'if conditions are met'.

Some of their preferred projects include development of infrastructures - such as roads and bridges - and natural resources. When asked to cite desired locations, they pick Haeju and Kaesong, the North's border city. Other respondents are interested in direct investment in facilities, while another group says they will start subcontracts with DPRK's companies.

However, most of the respondents think that the reunification isn't making progress. In fact, 70% say inter-Korean relations 'are stalled'.

Their response isn't surprising considering that Seoul and Pyongyang have had strained ties since 2010, when the former has imposed an official order to ban cultural and economic trade with the other country. The decision came after North Korea attacked South Korea's warship and border island.

President Park Geun-hye has asked North Korea to leave behind the development of nuclear weapons and join forces. However, the latter has vowed to further develop and strengthen its nuclear arsenal, as well as economy, in order to have a powerful weapon against the U.S. Still, the South Korean government hopes that the conflict will be resolved in the future.