[21], On 3 April 2013, North Korea began to deny South Korean employees access to the Kaesong Industrial region. Among the most pressing are U.S. economic sanctions against the North, prohibiting imports of key technologies and goods, such as computers. [10] In February 2016, shortly before the park was closed for the last time, the number of South Korean firms operating in the park had increased to 124. [18], In May 2010, following the sinking of the ROKS Cheonan and South Korea's response, North Korea severed ties with South Korea and shut its Consultative Office;[19] however, existing activities in the zone maintained production activities,[20] and transport and telephones to South Korea were operating normally. Construction started in June 2003, and in August 2003 North and South Korea ratified four tax and accountancy agreements to support investment. The Kaesong Industrial Complex (KIC), one of four special economic zones in North Korea, is an industrial park located in North Korea, just across the Demilita-rized Zone (DMZ) from South Korea.2 The KIC stands out because, in recent years, the other three zones have become dysfunctional for all practical purposes. Construction started in June 2003, and in August 2003 North and South Korea ratified four tax and accountancy agreements to support investment. Late in 2010, North Korean artillery units fired shells onto and around Yeonpyeong Island in disputed waters. Kaesong is a special administrative region of North Korea formed in 2002 featuring the Kaesong Industrial Park, a collaborative economic development … [6][28], On 13 September, before the reopening of Kaesŏng Industrial region, the two governments held a subcommittee meeting to iron out additional issues regarding entrance, legal stay, communication, customs and passing. [9], By the end of the first full year of operation, 11 South Korean firms were operating in the KIR. Video. Companies have been given incentives by the South Korean government to move operations there, including political risk insurance to cover losses in their investment. The DPRK and ROK jointly operate an industrial complex in the Kaesong Industrial … The Saenuri Party, the ruling party at the time, said during the announcement of Kaesŏng Industrial Region's closure, "North Korea conducted the 4th nuclear test and rocket launch regardless of persistent warnings from the South Korean government and the international society. [3], As of April 2013[update], 123 South Korean companies were employing approximately 53,000 DPRK workers and 800 ROK staff. There is no option of air travel available from Kaesŏng to the South. The South Korean government did not take strict measures against North Korea even though North Korea intentionally bombed the Inter-Korean Liaison Office, a building created to keep peaceful communication between the two countries. Industrial Park, Despite U.S. Some 54,000 North Korean workers are employed there as well as hundreds of South Korean workers, according to the Unification Ministry in Seoul. [14], In September 2009, a visit to North Korea by the Hyundai Group chairwoman led to a resolution to the North's demands, with mild wage increases and no change in land rents. CNN's Paula Hancocks explains why the joint project between North and South Korea is an important bellwether of relations. The notices were made by a unilateral decision by North Korea. In the park's initial phase, 15 South Korean companies constructed manufacturing facilities. Why is the US short of chicken and ketchup? If all the stages of development are completed as planned, it will eventually be half the size of Manhattan Island and will house shopping and residential areas, as well as tourism and recreation. South Korea has said the purpose of the KIC was to develop an industrial park where South Korean companies could manufacture their products using North Korean labour. [11] The different types of manufacturing performed in the park broke down to 71 textile and clothing firms, 9 chemical product firms, 23 that dealt in metals and machinery, 13 that produced electronics, and 8 firms of other kinds of production. The Kaesong Industrial Complex was once at the heart of South Korea’s pro-rapprochement “sunshine policy.” Launched in 2004, Seoul hoped that this joint economic initiative might help pave the way toward a brighter and more stable future for the peninsula. However, after the introduction of the Sunshine Policy, 93 percent said unification must be achieved.Another survey before the 2012 presidential elections found t… Seoul says a North Korean torpedo sank the ship, but Pyongyang denies any role in the incident. Yes. The Kaesong Industrial Complex (KIC) is located inside North Korea just across the demilitarised zone from South Korea. We need more powerful sanctions on North Korea. VideoWhy is the US short of chicken and ketchup? The closest station in South Korea is Dorasan Station, from which road access can be taken. The agreement included provisions designed to ensure against a similar shutdown in the future. The head of the panel Kim Jong-soo said, "The presidential office inserted the wage-diversion argument as major grounds, yet without concrete information, sufficient evidence and consultations with related agencies, mainly citing defector testimonies that lack objectivity and credibility. The Kaesong Industrial Complex (KIC) is a large industrial park in North Korea located just north of the demilitarized zone. The eight companies were informed of a notice to pay ₩170,208,077 ($160,000 US) in taxes; two of the companies have already paid $20,000 in taxes to the North Koreans.[17]. Children killed in shooting at Russian school, From school choir girl to mummified cult leader, Israel-Palestinians: Old grievances fuel new fighting, 'I'm ashamed my father was a Capitol Hill rioter' Video'I'm ashamed my father was a Capitol Hill rioter', The family locked up by Australia for three years, The Indian newsroom counting the uncounted deaths. The government would be liable for hundreds of millions of dollars in insurance payments to the South Korean companies that use the complex. Wählen Sie aus erstklassigen Inhalten zum Thema North Korea Bans South Korean Entering Kaesong Joint Industrial Zone in höchster Qualität. Limited road access is available for workers from South Korea via South Korea National Route 1 to the DMZ and then into Kaesŏng via Asian Highway 1 in the North. 'I'm ashamed my father was a Capitol Hill rioter' Video, 'I'm ashamed my father was a Capitol Hill rioter', Why is the US short of chicken and ketchup? South Korean companies pay about $100m (£69m) a year in wages to North Korean workers in the KIC, according to Yonhap news agency. Like us on Facebook: http://facebook.com/voalearningenglish From VOA Learning English, this is the Economics Report. On 10 February 2016, it was temporarily closed by the South Korean government and all staff recalled by the Park Geun-hye administration,[1] although the President of South Korea, Moon Jae-in, has signalled his desire to "reopen and expand" the region. Why is the US short of chicken and ketchup? [6] On 13 August South Korea said it would start distributing insurance payments to businesses in the complex, but also said it was open to new wording on the issue of joint control of Kaesŏng. Kaesong Industrial Complex fact check ③ Is it helpful for’peace’ between the two Koreas? The inter-Korean Kaesong Industrial Complex (KIC) and Mount Kumgang Tourist Region, both close to the 38 th parallel but located in North Korean territory, were strong symbols of this. To overcome these political challenges, this … On the other hand, The Minjoo Party and People's Party, which were the opposition parties, counter-argued that North Korea has never stopped its provocation even during its Arduous March, or the North Korean famine, emphasizing that a simple closure would never bar North Korea from testing nuclear weapons and launching missiles. It is becoming increasingly well-known for the Kaesong Industrial Complex, a "special economic zone", developed by Hyundai Asan with North Korea. It was not shut down in 2010, despite two violent incidents. [4][5] On 15 August 2013, both countries agreed that the industrial park should be reopened.[6]. [29] An official agreement to reopen the complex was reached and signed on 15 August. Five years later, another $1.78 billion would be earned from annual corporate taxes levied on South Korean companies participating in the industrial project. La zone industrielle de Kaesong (개성공업지구, Kaesong Industrial Region), créée en 2002, est une région industrielle formant l'une des trois régions administratives spéciales de la Corée du Nord. On 10 February 2016, the South Korean Ministry of Unification announced that the industrial park would be "temporarily" closed down and all staff recalled, partly in protest over continued North Korean provocations, including a satellite launch and a claimed hydrogen bomb test in January 2016. The project was launched in 2004, largely financed by the South to increase co-operation. The KIC is a duty-free zone, and there are no restrictions on the use of foreign currency or credit cards. The park was expected to be complete in 2012, covering 65 km2 and employing 700,000 people. This impairs the decision's legitimacy and could constrain our ground over a future restart of the complex, while hampering the companies' rights to protect their assets due to the hasty pullout process. FIFA gives the 32 teams playing in the World Cup $1 million each for preparation costs. All the goods made there are exported to South Korea for sale. The Kaesong Industrial Complex, home to South Korean companies employing North Korean workers, has been an island of relative peace amid the often-stormy inter-Korean relationship. Communication and persuasion, or the 'carrots,' do not work anymore. It was formed in 2002 from part of the Kaesŏng Directly-Governed City. Kaesong has no other industry and is unsuited for farming because of military facilities, so if the industrial park is shut down, the 40,000 workers face starvation. The February debate on 38 North between Ruediger Frank and William Brown highlighted opposing views about the Kaesong Industrial Zone (KIZ), and it most likely helped readers to better understand the ins and outs of the KIZ. The closest airports in the South are Gimpo International Airport and Incheon International Airport, from which road access can be taken to the industrial region. [8], In May 2009, Pyongyang announced it unilaterally scrapped wage and rent agreements at the industrial park. Pakistan prepares for Eid, rattled by crisis in India, 'I fight anti-vax myths with honeypot groups', Mind-boggling magnets could unlock plentiful power, Children killed in shooting at Russian school1, From school choir girl to mummified cult leader2, Dozens killed as Israel-Gaza violence escalates3, More bodies wash up on bank of river Ganges4, Ancient skeleton believed to be volcano rescuer5, Israel-Palestinians: Old grievances fuel new fighting6, 'I fight anti-vax myths with honeypot groups'7, Cruise returns Golden Globes as NBC drops awards8, Mind-boggling magnets could unlock plentiful power9, French soldiers warn of civil war in new letter10. However, for the most part the KIC has continued to operate and expand despite the frequent flare-ups of tension on the peninsula. Access to the road is closed if there are restrictions from checkpoints upon entering the DMZ. The park is located ten kilometres (six miles) north of the Korean Demilitarized Zone, an hour's drive from Seoul, with direct road and rail access to South Korea. Kaesong is a small city and former capital of Koryo Dynasty (918 A.D. - 1392 A.D.). Sohung South Airport is the closest airport to Kaesŏng in the North, but it serves no South Korea-bound flights. La zone industrielle de Kaesong, symbole des relations entre les deux Corées Exploité en commun par Séoul et Pyongyang entre 2004 et en 2016, le … It is the biggest contributor to inter-Korean trade. The project was launched in … Kaesŏng Industrial Region is served by Korean State Railway from Panmun Station through the Pyongbu Line. There is rail access to South Korea (operated by Korail) via the Gyeongui Line but it is not known what restrictions apply. Localisation de la Zone industrielle de Kaesong dans la province de Hwanghae du Nord (Corée du Nord) [42] On the contrary, in December 2020, South Korea’s National Assembly passed a law that penalizes South Korean citizens who send anti-North Korean material across the border.