Assuaging military tension between North and South Korea will be an important agenda item at the third Intra-Korean Summit this week (18 Sept – 20 Sept).

South Korean President Moon Jae-in is due to meet with North Korean Leader Kim Jong-un in Pyeongyang on Tuesday in a bid to appease future provocation between the two sides.

Moon’s visit will mark the first time in 11 years that a South Korean leader has visited North Korea’s capital.

In a *pre-summit cabinet meeting today (17 September), President Moon vowed to channel his efforts towards removing the fear of war and establishing ‘permanent peace’ between North and South.

South Korean Presidential Chief of Staff Im Jong-Seok told a press briefing that the main objective is to improve intra-Korean relations through a ‘comprehensive agreement’ to lower tensions and build trust [both sides agreed an armistice in 1953 but an official peace treaty marking the end of the war has never been signed  – Ed].

STRENGHENING PANMUNJOM

As reported by TRBusiness, both sides made a series of symbolic steps towards this in May, signifying what many observers have viewed as a ‘new mood’ in relations, a step towards an eventual denuclearisation of the borders, and a potential reunification.

The Panmunjom Declaration at the military demarcation zone resulted in South Korea removing propaganda loudspeakers along the North-South border, with Pyeongyang aligning its time zone with the South.

The ‘complete denuclearisation’ rhetoric at the time has not translated into unequivocal action since, but this latest summit hopes to go some way in achieving positive concessions in what international media outlets are saying will be Moon’s toughest challenge of his tenure.

Discussions surrounding improved intra-Korean relations will dovetail with dialogue designed to reboot stalled negotiations over the US’s request for North Korean denuclearisation.

Moon will seek to establish a middle ground between the US’s requests for denuclearisation and North Korea’s calls for an end to hostilities.

The latest Korean summit comes a mere three months after US President Donald Trump’s first meeting with Jong-un in Singapore.

Negotiations between the US and North Korea have since reached an impasse, leaving Kim with the unenviable task of brokering fresh dialogue on the issue to get talks back on track.

TOURISM STANDS TO BENEFIT

A large entourage is expected to attend the event, with Moon set to depart from Seoul at 8:40am to arrive at Pyeongyang Sunan International Airport at around 10 a.m tomorrow (Tuesday 18 September), where he will be greeted by an official welcoming ceremony.

The two leaders are expected to lunch together prior to the first day’s meeting.

A further set of meetings are scheduled to take place on Wednesday 19th September before Moon departs on Thursday 20 September.

Ultimately, the tourism and travel retailing industry would stand to benefit from any obvious improvement in intra-Korean relations.

As reported, South Korean duty free sales jumped by 38% to $8.2bn in H1 2018 with $1.5bn of the sales total accounted for by Koreans, underlying the clear potential for domestic sales growth.

The country’s total DF&TR revenue could climb by a further 20% this year, adding $2.5bn to 2017’s $12.8bn total if industry forecasts prove correct.

New store openings from Hyundai COEX Duty Free, City Plus Duty Free Sinchon and the recently unveiled Shinsegae Gangnam Duty Free are expected to contribute to that objective.

*Source: Joint press corps