Kaesong Industrial Complex: Is It Changing the DPRK? by Sarah Yun
[1]Kaesong Industrial Complex: Is It Changing the DPRK? [2] by Sarah Yun
The Kaesong Industrial Complex (KIC) is the archetype of inter-Korean economic cooperation. Since its inception in 2004, however, the existence of the KIC has been under constant scrutiny and attack from both Koreas. North Korea has recognized the KIC as an economic incentive and decided to use it as a trading and negotiating factor. South Korea has embraced the KIC as a potential instrument for profit by leveraging the North’s cheap labor, proximity, and low training cost. Furthermore, the KIC is a means of bolstering legitimacy for both sides, providing direct foreign currency to the Kim Jong-il regime and political support for Lee Myung-bak. Incentives and wealth created by the complex are too significant for either country to ignore. Due to economic stakes created, interaction on various levels has increased between the two Koreas, labor and human rights standards have shown signs of improvement and North Koreans’ perception of South Koreans has improved. Steps should be taken to continue to leverage the incentives in order to better engage with the DPRK.
Kaesong Industrial Complex: Is It Changing the DPRK? is an excerpt from Part IV of the 2009 SAIS U.S.-Korea Yearbook.
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URL to article: https://uskoreainstitute.org/academics/sais-us-korea-yearbook/2009-yearbook/part-iv-north-korea/kaesong-industrial-complex-is-it-changing-the-dprk-by-sarah-yun/
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