The U.S. Congressional Research Service says the Gaeseong Industrial Complex in North Korea represents a dilemma for South Korean and U.S. policymakers.
In a report released Tuesday, the service said that the inter-Korean industrial park has both positive and negative aspects for Seoul and Washington.
The report said that on one hand, the industrial complex is the last remaining form of cooperation between the two Koreas, providing a possible beachhead for market reforms in the North that could eventually spill over to areas outside the park and expose tens of thousands of North Koreans to outside influences, market-oriented businesses, and incentives.
On the other hand, the report said that the project provides an ongoing revenue stream for the Kim Jong-il regime in Pyongyang, by virtue of the share the government takes from the salaries paid to North Korean workers. South Korean and U.S. officials estimate the revenue stream to be around three to four million dollars per month.