Abstract
Constructing of Kaesong industrial complex in North Korea is led by private enterprises such as Hyundai group, under the agreement of two Korean governments. So far the constructing of Kaesong industrial complex operates well with the agreement of âInter-Korean Economic Cooperation Promotion Committeeâ. There are some grounds that should be preceded for Kaesong industrial complex in North Korea to get the political safety and economic prosperity as follow; First, South Korea should improve a system and provide supportive policies to simplify investment processes and to strengthen that of stability. Second, the North should make an effort to ease political and military tensions in Koreas in order to give freedom of economic activities in Kaesong industrial complex.
Highlights
Inter-Korean economic cooperation, which came to have legal effects by “the Law of Inter-Korean Exchanges and Cooperation” enacted in 1990, started at first, as trading business such as the simple commodities trade and processing in commission trade
It developed into the cooperation business that directly invests on the North Korea
Background of Kaesong Industrial Complex Construction: The argument on Kaesong industrial complex construction began as North Korea accepted the proposal
Summary
Inter-Korean economic cooperation, which came to have legal effects by “the Law of Inter-Korean Exchanges and Cooperation” enacted in 1990, started at first, as trading business such as the simple commodities trade and processing in commission trade. Inter-Korean economic cooperation written agreement should be come into effect shortly and processes of 3C (Come-and-go, Communications, Customs) and an inspection sector should be simplified, since South Korea selects companies working in Kaesong industrial complex. Meaning of Kaesong Industrial Complex Project: Kaesong industrial complex project does not just mean an improvement of Inter-Korean bond It is a large scale national policy business where the two Koreas pursue mutual interests by combining capital and technologies of the South with land and manpower of the North. Kaesong industrial complex project provides geographical conditions that enable the South and the North to utilize their strong points, such as capital and technologies of South Korea and competitive manpower and resources of North Korea Using these conditions, it can take ‘the Inter-Korean economic cooperation stronghold’ role, leading Inter-Korean economic community construction, by making less competitive small and medium sized enterprises work in this complex, creating rational division of labor structure of inter-Korea and developing the South and the North into a physical distribution center. More than 720 thousand job positions will be created, which amount corresponds to 6.14% of economically active population of the North in 2002
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