Managment and labor representatives from MIRECO and Korea Tourism Organization (KTO), including MIRECO President Lee Cheong-ryong and KTO President Ahn Young-bae, attend a ceremony to sign an MOU to boost the regional economy and ramp up social values at KTO headquarters in Wonju on July 25. (Photos: MIRECO, KTO)

Management and labor for MIRECO and Korea Tourism Organization (KTO) signed an MOU to boost the regional economy and ramp up social values at KTO headquarters in Wonju, Gangwon-do, on July 25.

The agreement calls for management and labor of the two corporations to jointly establish and operate a win-win consultative committee to boost the regional economy and realize social values.

The takeaways of the deal include the expanded purchase of regionally grown agricultural produce through cafeterias’ joint order and joint operation and the joint development of projects designed to reinvigorate regional markets.

MIRECO President Lee Cheong-ryong said, “The agreement will enable for the institutions to jointly explore and implement diverse projects.” They will spearhead co-prosperity and cooperation with regional society by maxing out synergetic effects through collaboration, he added.

MIRECO Transfers Mine Reclamation Management Technology to Rwanda

Fourteen officials from Rwanda’s petroleum and gas authorities and other energy-related agencies underwent a training program designed to ramp up capabilities on energy, resources, and mine reclamation from Aug. 25 through Sept. 7. 2019.

Members of the city mayors and the country chiefs’ consultative committee from seven closed mine areas, participate in a meeting in which they issued a statement to oppose MIRECO’s merger with KORES at Hwasun-gun County Office in Jeollanam-do on Aug. 18.

Cmte. Puts Up Opposition Against MIRECO’s Merger with KORES

The city mayors and the county chiefs’ consultative committee from seven closed mine areas, including Hwasun-gun, Jeollanam-do, put up opposition to a parliamentary measure to merge Mine Reclamation Corp. (MIRECO) and Korea Resources Corp. (KORES).

In June, Rep. Lee Jang-sup submitted a bill to consolidate MIRECO and KORES, saying that it is designed to ease a liquidity crisis, caused by the impaired capital of the latter and improve efficiency of resource management.

Rep. Hong Young-pyo submitted a similar measure during the 20th National Assembly in November 2018, but the bill was automatically discarded in the face of strong opposition from residents in the areas, including Mungyeong, Gyeongsangbuk-do, and Hwasun-gun.

The city mayors and county chiefs’ consultative committee issued a statement, saying MIRECO’s merger with KORES is tantamount to making another insolvent company, and the damage will be done only to residents in the closed mine areas.

It was in 2016 that KORES had fallen into an impaired capital situation following failures in resources development projects. KORES’ debts soared to 6.4 trillion won based on settlements in 2019.

The figure is almost twice the corporation’s capital. Opponents alleged that if KORES, in danger of immediate bankruptcy, is merged, the corporation’s financial woes will spread to the merged entity.

Most projects the merged entity would implement are commissioned. The merged entity might find it hard to repay its debts by creating revenues, and MIRECO’s assets and financial resources would be used to pay back the debts, thus leading to simultaneous solvency of the two corporations.