Tag: Kaesong

This has been something I have been saying for years that the Kaesong Industrial Complex is a cash cow for the Kim regime which further helps them build the very weapons they use to threaten South Korea and the international community with:

South Korea said Wednesday it has decided to “completely” shut down a joint industrial complex in North Korea in response to the North’s recent nuclear test and long-range rocket launch.

The Unification Ministry announced that it will suspend the operation of the Kaesong Industrial Complex in the North’s border city of the same name, the last remaining symbol of inter-Korean reconciliation.

Seoul’s move is part of its “bone-numbing” measures against North Korea’s nuclear test on Jan. 6 and its long-range missile launch earlier this week.

On Sunday, the North launched a long-range rocket carrying a satellite, which Seoul and Washington view as a cover for a banned test of intercontinental ballistic technology.

“Despite our efforts to support the Kaesong complex, the factory zone is seen as being used for North Korea’s development of nuclear weapons and long-range missiles,” Unification Minister Hong Yong-pyo said in a press briefing. “We’ve decided to halt the operation of the Kaesong complex to prevent South Korean money from being funneled into the North’s nuke and missile developments and to protect our companies.”  [Yonhap]

You can read the rest at the link, but I think the Park administration has left Kaesong open as something of a bargaining chip to make the North Koreans behave.  This clearly has not worked and finally the Park administration has had enough and shut it down.

Instead of trying to use claims of setting up a Social Security system for the Kaesong workers, the North Korean negotiators now appear to be trying to make use of the minimum wage fight in the US and claim it is their sovereign right to wage the minimum wage for Kaesong workers:

The two Koreas are holding talks to settle the dispute over the wages of North Korean workers employed at the Gaeseong Industrial Complex in the North.

The sixth round of talks of a joint inter-Korean committee in charge of running the complex is under way at the complex in the North Korean border city.

During a plenary session Thursday morning, the two Koreas exchanged opinions on the wage dispute, issues concerning border passage, customs and communications as well as improving working conditions at the factory zone.

In the afternoon, Lee Sang-min from the Unification Ministry, heading the talks, and his North Korean counterpart Pak Chol-su, a vice director of the North’s special economic zone development department, held two chief delegates’ meetings and discussed the wage concern.

A Unification Ministry official in Seoul said the mood in the talks was not bad, but results of the meeting are not yet known.

Before the morning session began Thursday, Lee welcomed news of Pak expressing hope that the day’s meeting would serve as “welcome rain” for cross-border relations.

The North Korean official went on to metaphorically say that recent downpours have in fact considerably helped harvest conditions in the North.

He said that he believes the latest talks can produce good results just like a long awaited rain after a drought for business people hoping for the success of the complex and all Koreans longing to see inter-Korean relations improve.

The Thursday talks are known to have particularly focused on the contentious issue of revising labor regulations including a five percent cap on minimum wage growth.

North Korea contends setting the minimum wage is a sovereign right while the South calls for an inter-Korean agreement on the issue per the previous rule.  [KBS World Radio]

You can read more at the link.

A group of South Korean cultural heritage officials and historians take the first shovelfuls of dirt during a ceremony held in the North Korean border town of Kaesong on June 4, 2015, to mark the start of this year’s inter-Korean joint excavation of the site of Manwoldae, a Goryeo Dynasty (918-1392) palace, in the city. The project will continue for six months until Nov. 30. (Yonhap)

From the North’s perspective why would they want to globalize the Kaesong Industrial Complex?  It has worked as a great bargaining chip for them over the years to get what they want from the South Koreans:

South Korea called on North Korea to be more cooperative in luring foreign investors to their joint industrial complex in the North on Monday, the eve of the first anniversary of its reopening.

Seoul’s unification ministry said the operation of the Kaesong Industrial Complex (KIC) has been almost fully normalized despite a six-month hiatus from March last year.

The North, however, has maintained a lukewarm attitude toward agreed-upon working-level meetings to discuss ways to develop the facilities, where 125 South Korean firms employ more than 52,000 North Korean workers, according to the ministry.

“The globalization of the KIC has made little progress due to North Korea’s uncooperative stance,” it said in a press release. “North Korea will have to do what it should do for dialogue (on the future of the KIC) and its globalization.”  [Yonhap]

You can read more at the link, but to the South Koreans globalizing Kaesong likely means getting as many Chinese companies as possible in there to make it harder for the North Koreans to shut down again.