Details of these discussions weren't provided. The economic match seems like one made in heaven South Korean companies are eager to tap North Korea's low-cost labor and to build infrastructure, and North Korea badly needs the South's investment to resurrect its ailing economy. Some of South Korea's biggest companies, including Hyundai Group and Samsung Group , have investment plans for the North. However, the hurdles are high. North Korea, however, hasn't yet agreed to form the committee.
Business is tough for Southern firms already operating up North.
The two Koreas don't have direct phone or mail links, and there are no land routes across the armed border. Other problems include poor infrastructure in North Korea and the unpredictability of northern officials. Bridging the Gap Consider Daewoo Corp.'s textile business. Daewoo Corp., the trading firm of the ailing Daewoo Group , formed a 50-50 joint venture called National Industry Co. with a North Korean organization in 1996, after five years of negotiations. The venture had problems from the start, says Chang Kyung Wook, executive director of Daewoo Corp.'s textile division.