South and North Korea have reached an agreement on the supply of electrical power to the Kaesong Industrial Complex.

The Korea Electrical Power Corporation, or KEPCO, will provide power to companies operating in the pilot site of the industrial park, which is located just north of the demilitarized zone.

The communist state is chronically short of electricity, making secure supply essential if companies want to operate successfully in Kaesong. Pyongyang had originally called for the construction of a power-generating facility at the site, but Seoul proposed supplying the complex with the electricity from the South through power lines.

The park is being recognized as a successful example of greater inter-Korean cooperation that emerged from the historic June 2000 summit between then-South Korean President Kim Dae-jung and North Korean leader Kim Jong-il.