Joong Ang Daily:
9/22/2006
South Korea has decided to postpone expansion of a joint industrial complex in Kaesong with North Korea amid heightened tension over the communist state’s nuclear ambitions, Unification Ministry officials said yesterday.
At the beginning of this month, Seoul indefinitely suspended its plans to begin receiving applications from South Korean companies that wished to move into the joint industrial complex in the North’s border town of Kaesong in June. The decision came amid concerns that North Korea was planning to test-fire another missile. Pyongyang test-fired seven ballistic missiles, including a long-range Taepodong-2, on July 5.
The South Korean government refused to halt or suspend the inter-Korean project despite the North’s actions, which prompted a UN Security Council resolution prohibiting any missile-related dealings with North Korea.
Unification Minister Lee Jong-seok, the country’s point man on North Korea, has also defended the joint business venture, claiming inter-Korean cooperation may one day provide the key to the reunification of the divided Koreas.
The ministry again sought to receive applications from South Korean businesses this month or early next month, according to the ministry official. But it decided to postpone the schedule again due to unfavorable conditions.
“Because the most important thing is market conditions, [the government] is saying we will do it when [the market conditions] are most appropriate, but I believe there has been no specific pressure or request from the North Korean side,” Mr. Lee said in a regular press briefing yesterday.
He said it would not take too long for the planned expansion to be realized, but “it would not be appropriate for now to say when the right time would come.”
Yonhap:
9/21/2006
The South Korean government decided to postpone expansion of a joint industrial complex with North Korea amid heightened tension over the communist state’s nuclear ambitions, Unification Ministry officials said Thursday.
The decision follows an earlier delay of the planned expansion as a result of North Korea’s launching of missiles in July.
Seoul was to begin receiving applications from South Korean companies that wished to move into the joint industrial complex in the North’s border town of Kaesong in June, but the plan was suspended indefinitely due to signs of North Korean missile tests since the beginning of the month. Pyongyang test-fired seven ballistic missiles, including a long-range Taepodong-2, on July 5.
A ministry official said the decision comes despite repeated requests from North Korea for an early expansion of the complex.
“North Korea has consistently asked the government, even after it launched the missiles, to move ahead with the scheduled expansion of the complex at the earliest date possible,” the official, speaking on condition of anonymity, told Yonhap News Agency.
The South Korean government had refused to halt or suspend the inter-Korean project despite the North’s provocation, although it prompted a U.N. Security Council resolution prohibiting any missile-related dealings with North Korea.
Unification Minister Lee Jong-seok, the country’s point man on North Korea, has also defended the joint business venture, claiming inter-Korean cooperation may one day provide the key to rapprochement or reunification of the divided Koreas.
The ministry again sought to receive applications from South Korean businesses this month or early next month, according to the ministry official. But it decided to postpone the schedule again due to unfavorable conditions.
The unification minister said North Korea has made no specific requests for an early expansion of the joint complex, but now was not the best time for the plan.
“Because the most important thing is the market condition, (the government) is saying we will do it when (the market condition) is most appropriate, but I believe there has been no specific pressure or request from the North Korean side,” Lee said in a regular press briefing.
He said it would not take too long for the planned expansion to be realized, but “it would not be appropriate for now to say when the right time would come.”
The second delay comes amid concerns, mainly from the United States, that an expansion of the inter-Korean industrial complex may help funnel funds to the North’s missile and weapons programs.
Washington denies asking Seoul to suspend the inter-Korean project, but a number of ranking U.S. officials, including special ambassador for North Korean human rights Jay Lefkowitz, have raised concerns that South Korean companies operating at the joint complex may be aiding the North’s missile and nuclear weapons program while exploiting the North’s cheap labor.
“The government decided to consider installing additional factories at a later time due to the unfavorable situation,” the ministry official said.
The official denied any direct links between the postponement and the apparent opposition from Washington, but said it was “one of the elements considered.”
An additional 250 South Korean companies were expected to move into the industrial complex, where 37 businesses are already operating or soon expected to do so, when the planned expansion was complete.
There were nearly 8,300 North Korean employees at the joint industrial park as of the end of August, according to Goh Gyeong-bin, the ministry official in charge of the inter-Korean development project.
But ministry officials say the amount of money paid to the North Koreans is still insignificant, even for the impoverished North.
From US$500,000 to $600,000 in wages is paid each month to the workers at the Kaesong complex, whose minimum monthly salary is set at $57, according to Goh.
