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North Korea on Monday effectively blocked South Koreans’ entry into and exit from the joint Kaesong Industrial Complex by cutting off the North-South military communication channel for the duration of South Korea-U.S. military drills from March 9 to 20. It was only the latest threat to the inter-Korean industrial park.
Pyongyang has recently applied pressure on South Korean firms operating in the joint industrial park. It has reinforced labor rules, threatening to fine South Korean firms up to US$2,000 if they delay a month's pay and order them to suspend operations if they fail to pay their workers altogether.
"Senior government officials visiting from Pyongyang mentioned labor and environment issues," a staffer with a South Korean firm operating in the industrial complex said. There is speculation that the North is trying to find an excuse to shut the complex. "North Korea seems to harbor a perception that if South Korean firms were expelled, they could be replaced by businesses from China and other countries," said a source familiar with the North.
But a government official here said North Korea will not be able to close the Kaesong Industrial Complex so easily because it makes W30-40 billion (US$1=W1,551) a month in profit and because of problem of what to do with nearly 40,000 North Korean workers employed there.
A Cheong Wa Dae official said, "We have yet to consider means of withdrawing from the Kaesong Industrial Complex on our own. Once the military drill is over, it’s expected that the industrial complex will go back to normal."
(englishnews@chosun.com )
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