South Korea warns its companies against investing in Pakistan-occupied Kashmir
South Korea has reportedly told its companies against investing in Pakistan-occupied Kashmir (PoK). Cho Hyun, South Korean vice-minister for foreign affairs recently revealed that Seoul had given "enough warning" to their companies which had shown interest in investing in PoK. This comes amid India's objections to Chinese investments in PoK under the China-Pakistan Economic Corridor (CPEC). What does this mean for India? Read on.
What context is this happening in?
Pakistan has been aggressively seeking investments in energy and infrastructure projects in PoK. Reports in July 2017 indicated that South Korea's Daelim Industrial Company Limited, which had initially shown interest in investing in the Chakothi Hattian Hydro-project in PoK was reconsidering the same after financiers withdrew. Seoul's reluctance also seems to be driven by several instances of harassment of South Korean nationals in Pakistan.
What does South Korea say?
Speaking in Seoul recently, Cho said that "South Korea fully understands India's sensitivity (over the India-Pakistan disputed nature over PoK)." He admitted that a few South Korean companies had shown interest in investing in infrastructure projects in PoK. However, he refused to name them. "We will try to refrain these companies from working in PoK," he added.
What does this mean for India?
The development signifies a gain for India. It shows that the international community, including South Korea may be seeing the Kashmir dispute from India's perspective. Seoul may also be discouraging its companies to avoid getting stuck in legal entanglements involved in investing in a disputed territory. Concerns over safety of foreign nationals working in Pakistan may have influenced the decision as well.
