S. Korea refrains from spending on North amid political limbo

SEOUL, May 31 (Yonhap) -- The Seoul government, engaged in a deepening political
deadlock with Pyongyang, has executed only 1.8 percent of its yearly budget for
economic aid to North Korea during the first four months, its data suggested
Sunday.
According to Unification Ministry data, the government spent only 26.91 billion
won (US$21.48 million) out of its inter-Korean cooperation fund worth 1.5
trillion won during the January-April period.
The Seoul government suspended its decade-long rice and fertilizer aid to the
North after conservative President Lee Myung-bak took office last year, taking a
tougher stance on the North's nuclear program and withdrawing his liberal
predecessors' unconditional aid policy.
Lee has urged Pyongyang to come to the dialogue table to resuscitate frozen
relations and revive economic exchanges, but Pyongyang has rebuffed the call,
citing Lee's "confrontational" policy.
Prospects for inter-Korean talks further dimmed last week as North Korea
conducted its second nuclear test.
Seoul's aid budget for North Korea includes rice and fertilizer shipments worth
800 billion won, facility construction of cross-border railroads along the east
coast, and loans for local businesses investing in North Korea, including more
than 100 firms operating at a joint industrial park in the North's border town of
Kaesong.
South Korea spent 674.4 billion won in government-level economic aid to North
Korea in 2005 and 715.73 billion won in 2007. The budget execution dropped to
231.2 billion won last year.
hkim@yna.co.kr
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