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North Korea

Gaeseong Industrial Park in Crisis

2009-03-26

Korea, Today and Tomorrow


North Korea has repeatedly blocked and reopened the inter-Korean border in recent weeks, and many are raising questions about the stability of the Gaeseong industrial complex. North Korea banned border access and also cut off the last remaining military communication channel with the South on March 9 when a joint military exercise between South Korea and the United States, known as Key Resolve, began. The North shut down the border three times during the drill period that lasted until March 20. It was the first time for the Gaeseong industrial complex to suffer passage disruptions since the first factory entered the inter-Korean joint complex in 2004. Here’s Dr. Dong Yong-seung from the Samsung Economic Research Institute to explain Pyongyang’s intentions behind its arbitrary border control.

North Korea imposed border restrictions in protest of the joint military drill between South Korea and the U.S. Pyongyang also uses the Gaeseong industrial complex as leverage to pressure Seoul, assuming the closure of the joint complex would have a great influence on the South. North Korea believes the South has benefited from the venture business, while South Korea considers it to be another form of economic aid for the North. So the two sides see the same thing but think completely differently. By exploiting the joint business, North Korea went as far as stranding hundreds of South Koreans, as if taking them hostage.

The industrial complex has been touted as a symbol of economic cooperation between South and North Korea. At present, it accommodates 101 South Korean companies and employs nearly 40-thousand North Korean workers. Their combined output amounted to 250 million dollars in 2008, up 40 percent from a year earlier. Despite the considerable economic benefits, the Gaeseong project has been vulnerable to ever-changing political situation in and around the Korean Peninsula. For example, North Korea restricted border crossings and expelled almost half of South Korean personnel from the industrial complex last December, taking issue with the Lee Myung-bak government’s hard-line policy. Following North Korea’s missile launch and nuclear test in 2006, then-U.S. special envoy for North Korean human rights Jay Lefkowitz demanded a suspension of the Gaeseong industrial park. And the unfavorable political conditions have always taken a toll on businesses operating at the complex. This time is no exception.

Raw materials and fuel should be delivered to companies in Gaeseong regularly and on time because they can produce goods only when the materials arrive. Pyongyang’s repeated border shutdowns caused disruption in the delivery, hampering the steady production of the manufacturers. Notably, their outbound shipment is decreasing. This means foreign buyers have increasingly been questioning the stability of the Gaeseong industrial park.

Compared to other industrial parks, the Gaeseong complex finds it harder to mobilize its labor force and pay wages. Also, it’s difficult to use the Internet and telephones inside the complex, making it hard to communicate with foreign markets. But the biggest problem is the instability of the complex. Coming in and out of Gaeseong is like walking on thin ice because North Korea may try to abuse the border again at any time. Cross-border travel has now emerged as another factor aggravating inter-Korean ties.

It’s always possible that North Korea will restrict cross-border trips again, since the reclusive nation thinks it may shut down the Gaeseong complex anytime it wants. So the possibility of the North’s border restrictions will remain, unless the North changes its attitude. North Korea may use the industrial park whenever necessary, for example, when it attempts to launch a missile or provoke an inter-Korean military clash on the West Sea. But I don’t think the North is considering closing the complex altogether or expelling South Koreans from the complex at this point in time.


Experts say neither the North nor the South will try to shut down the complex. North Korea, in particular, will suffer from enormous economic losses and only draw criticism and distrust from the international community should it close the industrial complex. Dr. Dong advises that the complex should be operated on a more stable basis, free from any political or military influence.

The question is how to prevent North Korea from imposing passage restrictions or detaining South Korean nationals unilaterally and how to boost confidence in the industrial park. South and North must resume their dialogue by any means and discuss in-depth ways to strengthen institutional framework aimed at protecting and developing the industrial park. For example, the North should be held accountable for financial and other damage it has caused, and the South, vice versa. The two sides could strictly stipulate their responsibilities in legal documents and let the international community authorize them.

The Gaeseong industrial park project is the only standing economic project between South and North and the last remaining resort in inter-Korean ties. It’s hoped both sides will respect bilateral agreements related to the joint business to prevent similar mishaps from happening again.

[Interview]High School Teacher Dedicated to Teaching Unification Issues for 14 Years

This teacher is giving students a lecture on unification issues at the Seo Seoul Life Science High School in the Guro District in southwestern Seoul. The students analyze unification and inter-Korean issues from different angles and express their opinions in front of the class. Cho Hui-je majored in law in college and later served as a social studies teacher. He has also taught unification issues at this school since 1996. Little wonder his nickname is “unification teacher.” Cho stresses the importance of providing young students with education about unification and inter-Korean matters before actually achieving the reunification of Korea.


These young students will lead a unified Korea. It’s important to teach them the situations of both South and North Korea and security concerns accurately. Only then will the younger generation be able contribute to the unification process and prepare for the post-unification era properly. That’s why we offer the students special classes on unification. Once the students enter this school, they are required to take an oath to become leaders of the peaceful unification of Korea. All the students of the school, regardless of their grade, receive unification education. Some programs are designed for those who are in the same grade, and others are for the whole classes. We have provided those programs for 14 years.

The school has given full support to Cho. He recommends his students keep journals of North Korea-related issues, in an effort to help them learn more about their communist neighbor. Also, the 15th day of each month is designated as a day for wishing for peaceful unification, and students voluntarily collect charity funds for the campaign entitled “Let’s Share Love with North Korean Students.” The school has an exhibition hall displaying various records and materials about inter-Korean issues and students have organized their own research club dedicated to those issues. But Cho says he often feels frustrated to see students and even other teachers who are rather indifferent to Korea’s unification.

Cho has three principles; develop sound views on national security, perceive North Korea objectively and approach unification in a future-oriented way. He has developed various interactive programs, such as puzzle games and quiz shows, in order to grab the students’ attention. Many students were rather apathetic at first, but they’ve become increasingly interested in unification issues while participating in Cho’s programs. Two students share their opinions.

….I happened to attend Mr. Cho’s class, and I found both the teacher and the class interesting. I’m a senior now, but I’m still a member of the North Korea research club. I’ve learned the North Korean language and various aspects of North Korean life, including food, clothing and housing. I’ve also written letters to students in North Korea. Before, I was indifferent to unification issues, and I even thought it wouldn’t be desirable to unify the two Koreas. But now, I’m willing to learn more about inter-Korean issues and I hope to study with North Korean friends after unification.

….In the past, I knew little about North Korea and I hadn’t thought about unification much. But I’m greatly interested in these issues now. I can understand North Korea-related news and I’m eager to know what’s happening in the North. I used to look at North Koreans negatively for no particular reason, but I’ve begun to perceive them differently.

There have been hard times, but Mr. Cho now feels happy and proud to see his students change and become more enthusiastic. He, himself, felt the need to learn more, and he was able to get a doctoral degree in North Korean studies. But his passion for education doesn’t end here.

I will retire in August of 2011. After retirement, I will visit elementary and junior high schools across the nation and help the schools devise plans and programs about unification education for free, as long as I can maintain my health. I have one more dream. I hope unification will come about soon so I can travel to North Korea and teach students there. I do hope Korea will achieve unification quickly.


Cho has been dedicated to educating young children in unification issues for the last 14 years. And he is planning to volunteer his service to other schools after retirement. His devotion and enthusiasm will shine even after unification.

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