The South Korean government believes that this week will be a turning point for South Korean companies in the Kaesong Industrial Complex. The crisis began when the North Korean regime closed the border for South Korean staff entering the industrial zone on April 3.
If North Korea does not relent this week, the complex is likely to suffer severe losses.
More South Korean businesses are starting to suspend operations due to materials shortages, with three on Friday, four on Saturday and 13 on Sunday. A Unification Ministry official said on Sunday, "Taking into account various factors, it seems that the situation will be dragged out into a long-term crisis. If North Korea continues to block entry to South Koreans, dozens of businesses will soon stop operating."
A group representing the South Korean businesses in Kaesong met with Unification Minister Ryoo Kihl-jae on Saturday to ask the South Korean government to seek a solution to the crisis through direct dialogue with the North.
A source on Kaesong said, "North Korean workers commute by buses operated by the South Korean businesses in Kaesong, but fuel supplies are running out. Unless fuel is supplied on Monday, there'll soon be no staff."
Some 514 South Koreans are still at the industrial park. Although there were no plans for them to return to the South on Sunday, one 43-year-old worker complained of stomach ache and returned to Seoul with his colleague. On Monday, 39 more people are scheduled to return to the South.
A consensus is forming that North Korea needs to realize that the crisis in Kaesong will eventually hurt the regime as well. A plan to implement "no work, no pay" principle in Kaesong is being reviewed.
As working hours of North Korean laborers were cut short due to the entry ban, the South Korean businesses will dock pay or delay payment until the crisis is resolved.
The average monthly salary of 54,000 North Korean laborers in Kaesong is US$134, and 123 South Korean businesses pay US$7-8 million to the North Korean government on the 10th of every month.