Obstacles Threatening the Existence of the Kaesong Industrial Complex

1300 WordsApr 23, 20196 Pages
Obstacles Threatening the Existence of the Kaesong Industrial Complex The Kaesong Industrial Complex is one of the only remind points of economic interaction between South Korea and North Korea. The KIC is also referred as a park or complex. It was officially opened in December 2004. It is considered by many to be the only possible route for reestablishing better political relations and reducing friction between both countries. Many scholars have argued that the KIC is the only way to improve the region’s stability and bring North Korea to open itself to the world. However, tensions between both countries have constantly arisen. Their hostilities originated since the beginning of the Korean War as Seth, the book author of A concise…show more content…
Sarah Yun, the author of Kaesong Industrial Complex: Is it Changing The DPRK?, describes the important infrastructure required, “the restoration of road and rail links and economic assistance projected included aid… ventures in mining, agriculture, and tourism and textile production” (Yun). As Yun expresses, all those components were agreed by both countries. Schattle, one of the authors of Pacific focus articles explicates that the KIC was a concept in which “warming ties between the Koreas, was considered a test case for reunification. It join South Korean knowhow and technology with inexpensive North Korean labor” (Schattle). However, infrastructure is an essential component so that those industries can transport effectively their goods. The complex requires different manufacturing facilities to use heavy machinery and constant passage of carrying vehicles. The type of infrastructure in KIC delays transportation of goods and commodities between both countries. The complex’s logistics lack proper maneuvering of goods from one place to another. The delays decrease production and South Korean companies begin to lose lucrative opportunities of profit. This at the long run discourages new South Korean businessmen to come to the complex and invest. As result, the South Korean government annually has to go through some extra financial burden to build “new roads, water treatment centers, housing, hospitals, gasoline stations, fire departments, customs
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