Koreas to set direct phone ties at Kaesong

The two Koreas will have the first direct telecommuncations network late this month as KT Corp., Korea’s largest fixed-line operator, will establish a telephone branch in Kaesong, North Korea. “KT’s first-ever North Korean branch will be set up and a telecommuncations network that directly connects the Kaesong Industrial Complex and Seoul will begin operation on Dec. 28,” Nam Joong-soo, KT’s chief executive, said in an interview with Yonhap News Agency. Thus far, inter-Korean telecommunication has been possible through an international telephone network routed through Japan via satellite. “The office will not only provide service to companies operating in Kaesong but also pave the way for future inter-Korean cooperation in the communications sector,” he said. The two Koreas also reached an agreement to set the charges at 40 cents per minute for inter-Korean calls, which have so far been priced at around 2,300 won ($2.22) per minute. Phone calls inside the complex will be priced at 3 cents for three minutes. The installation fee will be $100 and the monthly base rate has been set at $10. Several South Korean companies currently do business in the industrial complex and a total of 15 have been authorized to move there. Last month, the U.S. Commerce Department gave KT approval to install seven dual-purpose switchboards and other electronic devices in the North, making it possible to complete the phone connection. by Seo Ji-eun