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Kaesong Industrial Complex business owners hold a press conference on Jan. 9 in Seoul demanding that they be allowed to visit their facilities. (Corporate Association of Kaesong Industrial Complex)
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All 7 applications for visit since 2016 have been denied
Business owners with assets in the Kaesong Industrial Complex expressed “deep dismay” after their request to visit North Korea was deferred once again. This is the seventh time since the complex was shut down in 2016 that a visit by its business owners failed to come off, and the fourth time under the Moon Jae-in administration alone. Even if sanctions are still in effect against North Korea, it is very disappointing to see this failure to grant approval – even after the visitors have stated that they only want to check whether their facilities are still intact and have no plans to bring any cash with them. It’s become a form of torture, raising the hopes of people who must feel like parents who have had to leave their child behind. Chief reason likely lack of US cooperation As a reason for the postponed approval, the Ministry of Unification explained that the situation “requires discussions with North Korea in addition to the process of discussions by related ministries and seeking understanding from the international community,” adding that the “conditions have not yet been met.” But the overall content suggests the chief reason is the failure to gain the cooperation of the US. The South Korean government mentioned the Kaesong business owners’ North Korea visit issue during a Jan. 17 video meeting of the South Korea-US working group; the US reportedly replied that it was “not appropriate to mention” the topic because the video conference was “an interim meeting.” Seoul will need to focus its efforts at the next working group meeting on persuading the US not to allow its position to get in the way of the visit. In its belief that the sanctions are responsible for getting Pyongyang to participate in denuclearization talks, the US may think approval for this visit could be read as a loosening of sanctions, which could give rise to misunderstandings on the North’s part. But to judge from the message that Pyongyang has been consistently sending, it would be more apt to conclude that loosening sanctions may hasten the process of the North’s denuclearization. According to some reports, North Korea has been demanding exemptions to sanctions for the Kaesong Industrial Complex and tourism at Mt. Kumgang as corresponding US actions in response to its own initial stage of denuclearization measures. By signaling to Pyongyang the possibility of sanctions being waived, a visit by the Kaesong business owners could help in eliciting a more forward-thinking denuclearization pledge ahead of the second North Korea-US summit. Washington has been concerned about the possibility of “large amounts of cash” flowing into the North Korean government if operations at the Kaesong Industrial Complex are resumed. Research findings have shown that this matter could be averted by issuing North Korean workers electronic cards for the wages, allowing them to purchase products at supermarkets within the complex. Seoul needs to give close consideration to these points and proactively use them to win the US’ cooperation on resuming complex operations. They must not forget: the hope and despair of the Kaesong business owners is not simply an issue of the complex itself, but a touchstone in terms of promoting inter-Korean economic cooperation and peace on the Korean Peninsula. Please direct comments or questions to [english@hani.co.kr]
