| bibo:abstract |
Main Issues of the Gaesong Industrial
Complex Project and Possible Solutions
Jun Bong‒geun
Professor
Considering the benefits resulting from increased
inter-Korean exchange and cooperation and reduction in
military tension as well as the positive impact of the reform
and opening of North Korea, the Participatory Government of
South Korea has designated the Gaesong Industrial Complex
Project as its singular core project toward North Korea and is
providing intensive budgetary/administrative support for its
success. The first development phase of the project is now
complete with 818 acres of land having been developed.
Once the factories begin operations at the end of 2007, the
number of companies is expected to increase from the current
15 to 300, the number of North Korean workers from the
current level of 7,000 to 70,000 and annual sales from the $15
million (as of 2005) to $ 2 billion.
However, the project must still overcome a number of
Policy Brief
IFANS is ....
‟a think tank for Korean
foreign policy makers.” As
a part of the Ministry of
Foreign Affairs and Trade,
IFANS carries out in-depth
study on Koreaꡑs foreign
policies and international
relations.
S p e c ia l e m p h a sis is
placed on the study and
development of mid-to
long-term foreign policy
options for government
decision makers, while the
institute closely monitors
major current issues and
analyzes them.
IFANS produces a variety
of reports and research
papers including a biannual
Eng lish journal IFA N S
Review and weekly as
well as annual analytical
papers dealing with core
foreign policy issues.
No. 2006-5 / July 20062 Policy Brief 2006-5, July 2006
internal economic/technical/budgetary hurdles in order to proceed successfully
and on schedule. Additionally, there are external political and diplomatic
obstacles to overcome.
Both high hopes and apprehension hover over the project as it awaits
expansion in the latter half of 2006, prompting the need to re-examine its current
business status and significance and review the various measures needed to ensure
its success. This paper will address and seek to resolve the four main issues
amongst the many political/diplomatic challenges facing the project: U.S.
cooperation, problems of transportation-telecommunications-customs, export
control and the issue of products’ country of origin.
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