Archive for the ‘South Korea’ Category

The economic side of the Moon-Kim summit

Friday, September 21st, 2018

By Benjamin Katzeff Silberstein

The economic aspect has been continuously front-and-center throughout the Moon-Kim summit in Pyongyang (September 19–20). From a diplomatic standpoint, this is not all that surprising. Moon and Kim are pursuing what appears to be a rather classical Sunshine 2.0 pattern, with roughly the same contents as the predecessor. As Yonhap reports:

Earlier in the day, the leaders of South and North Korea agreed to work together for balanced economic development on the Korean Peninsula.

South Korean President Moon Jae-in and North Korean leader Kim Jong-un agreed to break ground on a joint project to connect railways and roads across their border this year and vowed diverse cooperative projects to deepen their friendly ties and foster a reconciliatory mood.

The agreements were reached during summit talks held in Pyongyang between Moon and Kim.

“We will prepare for (inter-Korean economic cooperation) in a calm and orderly manner,” Finance Minister Kim Dong-yeon said in a meeting with reporters here.

“But inter-Korean economic projects can gather speed if circumstances improve,” he said.

The minister said any inter-Korean economic projects should need support from the international community, and there are still many things to be done in advance.

The latest agreement came months after the leaders reached a deal during their April summit to modernize and eventually connect rail and road systems across their divided border.

Field surveys have been carried out to examine the state of some sections of the North’s rail and road networks, but the process has not moved fast enough, apparently due to stringent sanctions imposed on the North for its nuclear program.

Railways and infrastructure are both less politically touchy than outright trade, and potentially mutually beneficial, even though the south will carry the economic burden:

“The South and the North agreed to explore practical measures aimed at increasing exchange and cooperation and seeking balanced development,” read a joint statement they signed after the summit.

“The two agreed to hold a ground-breaking ceremony this year for connecting railways and roads running along their eastern and western coasts,” it also stated.

The decision came months after the leaders reached a deal during their April summit to modernize and eventually connect rail and road systems across their divided border. The Seoul government has set aside nearly 300 billion won for next year to carry out those projects.

Field surveys have been carried out to examine the state of some sections of the North’s rail and road networks, but the process has not been fast enough, apparently because of global sanctions on the North.

The second point of the Pyongyang Declaration promises more economic cooperation for “balanced” growth, and vows to reopen projects such as the Kumgangsan tourism zone, and the Kaesong Industrial Park, according to Moon, “when conditions allow“. Here’s an English-language full-text version of the declaration. A particularly interesting but understudied point is 2.3, on ecological cooperation.

Kim Jong-un’s forestry interest has been a recurring theme throughout his tenure, and as this blog has covered, he’s spoken about the problems associated with excessive tree-felling – the root cause of which is North Korea’s planning failures of the 1990s – in more honest terms than his father did. At the very least, there’s been strong hints of both pragmatism and understanding of North Korea’s structural problems in the way that Kim has talked about the forestry issue (and many others too for that matter). Indeed, the Korea Forest Service chief accompanied Moon to Pyongyang, and he hopes to get to work soon following the summit:

“Forests surrounding populous urban areas were heavily destroyed, but forests in less populated regions were well-preserved,” Kim Jae-hyun said in a meeting with reporters at a government complex in Daejeon. “I saw enough hope.”

He was speaking after accompanying South Korean President Moon Jae-in’s visit to North Korea from Tuesday to Thursday.

As the first step, Kim said the Korea Forest Service will explore ways to create tree nurseries in much-destroyed regions.

“The North Korean side wants large-scale tree nurseries, but it would be more practical to start with small nurseries in regions suffering from deforestation the most,” he said.

In regard to disease and insect control efforts, the official said the use of machinery could be limited as the North is under U.N. sanctions for its missile and nuclear tests, while pesticides are allowed.

“I think (the disease and insect control measures) should start immediately to build trust between the two Koreas,” he said.

The forest expert said his North Korea visit as part of the official entourage showed Moon’s “willingness” to pursue inter-Korean cooperation in the forest sector.

“Looking down from an airplane along the western coastline, North Korea’s forests were very impressive,” Kim said. “There were few trees on hills near Pyongyang, while trees were well-maintained on the way from Sunan Airport to Baekhwawon guesthouse.”

Mountains near Yalu River on the North Korean border with China were denuded, but Mount Paekdu showed off all colors of beautiful trees, he said.

Moon and Kim aren’t the only ones who have talked about economic cooperation. The mayor for Busan, South Korea’s second most populated city, for example, has announced projects that his city will spearhead. Yonhap again:

Busan’s envisioned projects, unveiled in time for President Moon Jae-in’s historic visit to North Korea, call for boosting the city’s cooperation with the North in the fields of fisheries trade and processing, modernization of fishing vessels and equipment, shipbuilding, exhibitions and conventions and smart city technology, the city said.

The city will push to invite North Korean filmmakers and actors to the Busan International Film Festival and hold an inter-Korean film festival.

Nikkei Asian Review also reports that the Moon government has put pressure on Samsung and its head, Lee Jae-yong, to present a large-scale investment plan for North Korea. Samsung has manufactured TV:s in North Korea before, but this time around, the company hasn’t appeared as eager as its other chaebol-counterparts to draft up implementable blueprints for investments up north. Politically, it makes sense. Samsung’s PR hasn’t exactly been superb as of late, with the arrest and later release from prison of its CEO relating to corruption charges tied to the Choi Soon-sil/Park Geun-hye-scandal.

South Korea’s main steelmaker Posco is also hoping for opportunities following the summit:

The executive was part of the business delegation that accompanied President Moon Jae-in on his trip to North Korea earlier this week. Choi and other businessmen discussed various inter-Korean economic cooperation projects that can be pursued going forward if conditions are right.

“It will be a big opportunity not only for POSCO but for the steel industry as a whole,” Choi said. “I think POSCO will be able to find chances for growth.”

The company recently created a new task force to prepare for potential business opportunities in North Korea. POSCO Daewoo, POSCO Engineering & Construction Co. and POSCO Chemtech Co. are participating in the task force.

The steelmaker said it wants to play a key role in railroad and other infrastructure projects in line with the changes in the geopolitical environment in Northeast Asia.

My five cents on what all this entails for the North Korean economy:

Of course, as of yet, nothing. Most of the plans and visions are routinely accompanied by the caveat “when conditions allow”. The infrastructure plans may be able to go ahead even with sanctions in place, at least the rhetoric from the Moon administration, and the timetable for breaking ground on the railway connections before this year is over, seems to suggest so. I’m no expert on the judicial side of the sanctions, but it’s hard to imagine that this will be fully uncontroversial from that standpoint.

In any case, North Korea is in dire need of infrastructure improvements and if they are extensive enough, they should hopefully not just connect South and North Korea with Russia and China for cheaper freight, but also make domestic goods transportation simpler and more efficient, with positive impacts for the markets and private manufacturing in the country.

On re-opening Kaesong, things are a bit more complicated. In its nature, Kaesong is a manufacturing zone mostly cut off from the rest of North Korea. Sure, the incomes of the workers did enter the North Korean economy, and arguably, the fact that South Korean consumer goods could to some extent enter North Korean markets through Kaesong spurred competition for more high-quality goods on the North Korean market as well. But Kaesong is hardly the only, and perhaps not even the main route through which such products enter the country. These are also pretty weak arguments when you look at the entire economic picture.

The problem with Kaesong isn’t so much what it was/is/will be, but the missed opportunities. The hope with special economic zones tends to be that institutional frameworks that are tried there first can later spill over into the rest of the country. In the case of North Korea, the arrangement made pretty sure that that didn’t happen, at least from what we can tell. Had inputs been sourced from North Korea, that could also have spurred wider economic growth, at least in some regions. In theory, there are lots of opportunities for synergy and cooperation between South Korean companies and smaller North Korean ones, not just the state. If the goal is economic development in North Korea more broadly, and not just economic profit on the southern side and incomes for the north, there are lots of models that carry far greater potential.

Share

Daily NK interviews a state security agent on sanctions, defectors, and life in North Korea

Wednesday, August 8th, 2018

Benjamin Katzeff Silberstein

Daily NK:

As changes to the political situation on the Korean Peninsula continue in the wake of the inter-Korean, US-DPRK (abbreviation for North Korea’s formal name) and Sino-DPRK summits, Daily NK recently met with an official from North Korea’s Ministry of State Security (MSS) in China to talk about international sanctions toward North Korea and the inter-Korean relationship. The MSS officer displayed a clear anti-American bias with his own ideological convictions, but also offered some objective evaluations of the North Korean regime.

Following is a transcript of the full interview.

Daily NK (DNK): International sanctions are still in effect for North Korea, as you know.

Ministry of State Security official (MSS): They are hard to accept. I’m not sure whether South Korea is trying to make itself look good in the eyes of Trump as it accepts the continued sanctions against North Korea, but in any case, they [the sanctions] are an irritant. There are many [North Korean] restaurants in China. The sanctions have made it impossible for new workers for these restaurants to enter China, and those who are here must return to North Korea next year.

I can understand [the international community] criticizing North Korea for not living as well as capitalist countries after moving away from socialism and operating in the international market like other countries. However, I’m angry that China, Russia and the South have come together to sanction us and that the US makes us a very poor country by preventing our goods from entering the international market.

If you ask anyone in North Korea – young or old – they will respond that North Korea must fight and drop a nuke on America. I think that Chairman Kim Jong Un got rid of nuclear weapons so that the sanctions would be lifted and our lives would improve, but personally speaking, I think we should drop a nuke on New York or Washington, D.C.

Why are South Koreans so angry about us making intercontinental ballistic missiles? We are seeking peace by destroying our [nuclear] underground facilities, but the US has simply stopped its military exercises. They could restart them again [at any time]. They claim they will get rid of the sanctions eventually but it’s hard to believe that.

DNK: The inter-Korean atmosphere, however, is focused on continuing exchanges and cooperation.

MSS: The sanctions must be lifted first for anything to really happen. With the sanctions still in effect, I could accept that President Moon Jae-in is the “trailblazer of the Korean people,” but he continues to look to America for guidance. We could ask South Korea to lift the sanctions, but they just do what America tells them to do. We are a brave people made up of the worker class, who form the basis of the socialist revolution. We have nothing to lose from a war. South Korea would hate to go to war, but the majority of us [North Koreans] would go to war without hesitation.

DNK: Have you ever watched South Korean dramas before?

MSS: Yes, I’ve watched them in secret in China. I have seen defectors on South Korean dramas like ‘Now on my way to meet you’ and ‘Moranbong Club.’ They don’t necessarily lie about everything; they get some things right. It is true life in North Korea is hard and that there are almost no rations from the government. There are some places that only give two-weeks worth of rations and people make up for the lack of food by going into business and cooking corn porridge, and some people even die due to the lack of food.

However, some defectors say that residents just walk by dead bodies on the street. How could that even be possible in a place inhabited by human beings? Even during the Arduous March [widespread famine of the mid-1990s], that wasn’t the case. Soldiers and inminban [neighborhood watch-like units] dug graves to bury the dead. That [walking by dead bodies] wouldn’t have even happened in Korea’s feudal period.

When I asked someone why the defectors lie like that, I was told that they are given money to appear on such TV shows. They received free education and healthcare in North Korea, but now they turn around and spit on their own country. They talk trash about their own country. I can acknowledge that life is tough in North Korea, and that people are hungry and there is no electricity so it’s difficult for factories to operate. But they [defectors] exaggerate too much.

Generally speaking, the women that go to South Korea end up living fairly well and the reality is that people [North Koreans] go to South Korea. However, half of them have committed some type of crime. They have fled because they have the police on their tail. At least half of them are in this situation. They have run away because they have committed a crime like borrowing money from people, and being unable to pay the money back, they have run away before getting caught by the police and being sent to a labor camp.

It is these types of people who come out on TV, crying and telling lies. I would be extremely upset if I lived [in the type of country they are describing]. There are difficulties in North Korea, but real people live there.

DNK: Does the North Korean state still have ironclad control over the country?

MSS: It is still difficult for people to move around freely. Nobody can go from the provinces into Pyongyang. You must have a pass to do that. I hope that the country will soon become like China where you only need a residence card to travel. We have a lot of problems. I hope that these problems will be resolved.

In China, people can send instant messages to those living in Germany or England. North Koreans can take pictures with their cellphones, but cannot use the internet. North Koreans cannot make international calls, either. They couldn’t even dream of it.

The state is worried about the impact of bringing in ‘capitalist-related things’ into the country because they could dampen the people’s ideological stance. I think in some ways the state’s restrictions on foreign things has helped keep North Korea’s ideological stance free of contamination.

Article source:
North Korean state security agent shares thoughts on sanctions, defectors and life in North Korea
Kim Song Il
Daily NK
2018-08-08

Share

South Korean officials in North Korea for joint forest inspection

Wednesday, August 8th, 2018

Benjamin Katzeff Silberstein

Yonhap reports:

A group of South Korean officials left for North Korea on Wednesday to conduct a joint inspection of forests and protect trees from harmful insects and diseases, the unification ministry said.

The officials led by a senior forest agency policymaker crossed into Mount Kumgang on the North’s east coast, where they will jointly examine the forests there, according to the ministry.

They will return home later in the afternoon.

The one-day trip follows up on the agreement reached during working-level inter-Korean talks early last month for forestry cooperation.

They agreed to cooperate in protecting forests along the inter-Korean border and in other areas from damage caused by harmful insects and diseases.

The two Koreas conducted a similar on-site inspection in July 2015 near Mount Kumgang. Two months later, they carried out efforts to fight insects and other damage, which was said to have cost them over 100 million won (US$89,400).

Meanwhile, the North will send six transport officials to the South on Thursday to hold a meeting and discuss details related to their cooperation in modernizing and possibly connecting railways over their border, the ministry said.

The meeting, the second of its kind, will be held at the Customs, Immigration and Quarantine (CIQ) office in Paju, just south of the inter-Korean border.

It came after their first meeting in Kaesong last month to discuss the outcome of an inspection of the conditions of the 15.3 kilometer-long railways from the North’s border town to the Military Demarcation Line (MDL) that separates the two Koreas.

Article source:
S. Korean officials visit N. Korea for joint inspection of forests
Yonhap News
2018-08-08

Share

Seoul says reopening Kaesong will wait till sanctions are lifted

Friday, August 3rd, 2018

Benjamin Katzeff Silberstein

Korea Herald:

“The government’s stance remains unchanged when it comes to the issue of the resumption of the Kaesong Industrial Complex,” Lee Eugene, a deputy spokesperson of the unification ministry, told reporters during a regular press briefing.

“The stance has not been changed either that things will be considered in line with progress in denuclearization efforts and within the frame of sanctions,” she added. “From a broad perspective, it would be desirable to push for its resumption after the lifting of the sanctions.”

Opened in 2004, the industrial park in the North’s border town of Kaesong was hailed as a key symbol of economic cooperation between the rival Koreas as it combined South Korean capital and technology with cheap labor from North Korea. The Seoul government, however, halted its operation in 2016 in retaliation for Pyongyang’s missile and nuclear provocations.

The North has recently ramped up its call for the South to reopen the industrial park amid a thaw in relations, but the US.

Article source:
Seoul says reopening of Kaesong complex should wait until sanctions lifted
Korea Herald/Yonhap
2018-08-03

Share

Seoul needs sanctions exemptions, official says

Monday, July 23rd, 2018

Benjamin Katzeff Silberstein

If anyone ever doubted that the US and South Korea are not in lockstep on sanctions…The question is how hard Seoul is pushing behind the scenes, and how hard it is prepared to push. Joongang:

A South Korean delegation that traveled to New York over the past weekend said Seoul needed to be exempted from some international sanctions against the North to implement the Panmunjom Declaration.

The remarks came on the same day that U.S. Secretary of State Mike Pompeo reiterated that sanctions against Pyongyang will remain in place until the North fully denuclearizes.

The rare show of discrepancy between the allies came at an unusually sensitive time between the South and North, after North Korean media excruciated South Korean authorities for what it said was kowtowing to the U.S. on inter-Korean issues.

A local official said Pyongyang appeared to be fed up with Seoul’s reluctance to help the regime wiggle out of sanctions.

South Korea’s official stance has been to support sanctions on the North until the country gives up its nuclear weapons, but from time to time officials have expressed a hope to seek exemptions, especially to work out the cross-border projects that South Korean President Moon Jae-in agreed to with North Korean leader Kim Jong-un during their first summit on April 27.

Last Friday in New York, a high-level South Korean official who spoke on the condition of anonymity decided to convey that hope to reporters – just as Pompeo highlighted in a different news conference that all UN member-states unanimously agreed to fully enforce sanctions on the North. The official was part of a delegation led by South Korean Foreign Affairs Minister Kang Kyung-wha, who traveled to New York to co-host a briefing session with Pompeo on peninsular issues for representatives of the UN Security Council.

Soon after the briefing, the official told South Korean correspondents in New York that the South Korean government “needed” some exemption from international sanctions on the North to implement the Panmunjom Declaration, adding that it was asking the international community to grant that exemption as it was leading the North through dialogue and cooperation.

Full article:
Seoul needs sanctions exemption, official says
Jung Hyo-Sik, Yoo Jee-Hye, and Lee Seung-Eun
Joongang Daily
2018-07-23

Share

WSJ on South Korean firms planning for business opportunities in North Korea

Monday, July 23rd, 2018

Benjamin Katzeff Silberstein 

WSJ:

After months of rapprochement—including summit meetingsbetween North Korean leader Kim Jong Un and South Korean President Moon Jae-in, and one between Mr. Kim and President Donald Trump —hopes are rising for more open access to North Korea, a country of 25 million people with vast mineral reserves and lots of cheap labor.

Samsung C&T Corp . , the de facto holding company of South Korea’s biggest and best-known conglomerate, created a North Korea task force in May, staffed by an executive and three managers.

Samsung’s construction arm, which has built some of the world’s tallest skyscrapers and is building subway lines in Singapore and Riyadh, Saudi Arabia, sees opportunity in the North as economic growth slows in the South.

Full article here:
Companies See Glimmers of Opportunity in North Korea
Jonathan Cheng
Wall Street Journal
2018-07-23

Share

North Korea’s negative growth in 2017: things look bad, unsurprisingly, but take the numbers with a grain of salt

Friday, July 20th, 2018

By Benjamin Katzeff Silberstein

Bank of Korea (BOK) has put out their yearly estimate of North Korea’s GDP trends. This year, they estimate that the country’s GDP decreased by 3.5 percent. Off the top of my head, this seems a fairly reasonable estimate, particularly since sanctions were only in force for a minor part of the year (late fall and onward). Some quick thoughts below:

As always, remember: estimate GDP in North Korea is very, very hard. How do you evaluate, for example, the market sector versus the state sector? Given how complicated and partially opaque North Korea’s system for pricing it, how can a GDP figure even be reasonably estimated? That said, BOK has been doing this for many years, and their figures are, for all their faults and flaws, some of the most reasonable estimates among the few that exist. Still, as one of the leading experts in the field once told a class of grad students studying the Korean economy: if someone gives you a figure on the North Korean economy with a specific decimal number, you can be sure that it’s wrong.

Some news outlets have made a big number of the fact that this contraction is the largest for over two decades, according to the BOK numbers. While that is true, the proportions are very different: in 1997, BOK estimates that the economy contracted by 6.5 percent, that is, almost double the contraction of 2017. So we’re not talking about any crisis nearly as significant as the famine of the 1990s.

BOK estimates a drop by 1.3 percent in agricultural and fisheries production. Notably, still, market prices for food have looked completely normal throughout the year, as this blog has noted several times before. It’s unclear how exactly agricultural production is estimated, and what the “sector” here really means – only what goes into the state-side of agricultural production and supply, or the sale of surplus production on the semi-private markets? The latter may very well be underestimated given how tricky it is to asses what share of agricultural production still lies firmly and solely within the state system.

It’s unclear how much of the shortfall in electricity production is compensated for by items like solar panels and other forms of electricity generation increasingly prevalent on the ground. Many have noted the various creative ways in which much of the North Korean population already adapts to the shortfall and unreliability of public supply of electricity.

The estimated trade numbers are very dire but also probably approximately realistic. Though the 37 percent shortfall in exports may be an overestimate given that they (presumably) don’t account for smuggling, it is undeniable that the economy is taking a very large hit from sanctions. People who recently visited the Chinese border speak of very low levels of activity in goods transports and the like. This gives cause for some skepticism toward the reports claiming that Chinese sanctions enforcement has gone much more lax lately: it may well have, but that hardly means the doors are flung open. At the same time, imports went up 1.8 percent. Either China is letting North Korea run a trade deficit which they assume they’ll get back once sanctions are eased, or the regime has much more currency stashed away to pay with the goods for than many have thought. The truth may lie somewhere in the middle there.

 

Share

South Korean companies gearing up to rush north, part x

Wednesday, July 18th, 2018

Benjamin Katzeff Silberstein

Hardly a day goes by without a new article on South Korean companies or business interests eyeing investments in North Korea as a golden opportunity. Here’s the Korean Tourism Association (from Joongang Daily):

Attracting both local and foreign travelers to lesser-known mountains and rivers across the peninsula is one of the goals of the Korea Tourism Organization under its newly appointed president Ahn Young-bae.

In the spirit of easing tensions between North and South Korea, Ahn plans to set up a team that will focus on promoting travel throughout both countries.

“If the relationship between the South and North [improves], ‘peace travel’ will really start to take off,” said Ahn during his first press conference, adding that this is one way to develop unique tour programs that can appeal to many travelers.

To develop new ideas to make the tourism industry in Korea more sustainable, Ahn also plans to set up a new tourism big data center. Here, he said, one can find out which areas are becoming popular vacation spots and what travelers are purchasing during their time away from home so that the travel industry can set up better marketing strategies. While a future management team, another initiative Ahn plans to start, will focus on how to make such changes, a value management team will conduct research based on the data and present their findings to the organization.

Full article:
KTO sees opportunity up North : New president plans to use big data to improve local tourism
Lee Sun-Min
Joongang Daily
2018-07-18

Share

South Korea, North Korea and Russia discuss railway cooperation

Sunday, July 15th, 2018

Benjamin Katzeff Silberstein

Trilateral cooperation discussions on the cross-peninsular railway happened in Rason despite Russia’s earlier cancellation:

A group of representatives from South Korea’s presidential panel returned home Sunday after a trip to North Korea, where they discussed possible trilateral economic cooperation involving the two Koreas and Russia, its official said.

The Presidential Committee on Northern Economic Cooperation sent an 11-member team led by committee chairman Song Young-gil to the North’s northeastern border region of Rason. They stayed there for two days from Friday.

The team originally planned to attend a seminar hosted by Russia to discuss trilateral economic cooperation involving the two Koreas and Russia but canceled its participation. Instead it had discussions with North Koreans and Russians on the Rajin-Khasan project and other issues, the official said.

Rason, formerly known as Rajin and Sonbong, was designated as a special economic zone in 1991. The North has sought to develop the zone by drawing outside investment but faced setbacks amid its continued provocations.

The Rajin-Khasan project, in particular, is a logistics project aimed at transporting coal from Russia to the North by using a 54 km-long railway linking Khasan in Russia to the Rajin port of North Korea and then to South Korea by ship.

There have been test operations of the transport route three times, including the latest one in November 2015.

The trilateral cooperation project, however, has been put on hold as South Korea banned maritime transport from the North in early 2016 in the wake of the North’s nuclear and missile provocations.

South Korea and the United States have said that full-fledged economic cooperation with the North should wait until it carries out its promised “complete denuclearization.”

“The Rajin-Khasan project is not subject to U.N. sanctions but to sanctions imposed by the U.S. So we plan to draw up and propose a broad picture and make preparations for joint study until there is progress in denuclearization and discussion begins on lifting those sanctions,” the panel official said.

Article source:
Presidential panel discusses Rajin-Khasan cooperation during trip to N.K.
Yonhap News
2018-07-15

Share

Reopening Kaesong key to cooperation, says ROK gov’t official

Friday, July 13th, 2018

Benjamin Katzeff Silberstein

A South Korean official (albeit one specifically representing the interests of the zone) calls re-opening Kaesong a “first step” towards resumed inter-Korean economic cooperation. Yonhap:

A South Korean official in charge of promoting investments in North Korea’s Kaesong Industrial Complex said Friday that the reopening of the now-suspended industrial park in the North’s border town will be a first step towards resuming inter-Korean economic cooperation.

Addressing a unification symposium in Seoul, Kim Jin-hyang, chairman of the Kaesong Industrial District Foundation, said the operation of the Kaesong complex has to be restarted as quickly as possible.

“Inter-Korean economic cooperation cannot be discussed without the Kaesong Industrial Complex,” said Kim, who doubles as chief of the Kaesong Industrial District Management Committee.

The government of former President Park Geun-hye abruptly announced the closure of the Kaesong park on Feb. 10, 2016, in retaliation for the North’s fourth nuclear weapons test and long-range missile launch.

Kim dismissed the abrupt closure of the complex as a “completely failed policy,” saying, “The decision was a grave disaster that shut down peace, economy and security altogether. North Korea was never dealt a blow when the Kaesong park was closed.”

“The Kaesong complex was not a special favor to the North. It was intended to support the South Korean economy stuck in a low-growth trap,” he said.

Kim noted that the Kaesong park is also very symbolic in terms of security and peace, arguing that the mix of about 60,000 South and North Korean workers in a single location can deter tensions and guarantee peace.

He stressed that South Korea should now join Singapore, Russia and China in preparing for large-scale investments in North Korea following its successive summit talks with the United States and South Korea to enhance the peace mood on the Korean Peninsula.

Article source:
Reopening of Kaesong Industrial Complex key to inter-Korean cooperation: official
Yonhap News
2018-07-13

Share