No reason for suspension, say investors
Companies taking part in joint Korean economic cooperation projects, such as Hyundai Asan, were relieved when the U.N. Security Council lessened the severity of its resolution against North Korea before signing it into effect on October 14. But if Pyongyang conducts another nuclear test, however, or a clash should happen in the process of inspecting North Korean ships, the situation may worsen, company representatives said. Hyundai Asan said that the U.N. resolution contains no articles that should cause the suspension of North Korea’s Mt. Geumgang (Kumkang) tours and business conducted at the joint Korean Gaeseong (Kaesong) Industrial Complex. "After analyzing the contents of the resolution and asking the Ministry of Unification regarding its potential influence, I reached the conclusion that inter-Korean economic projects won’t hit a snag," an official of Hyundai Asan said. "For the time being, we will focus our energy on normalizing the South-North cooperative projects that have suffered since North Korea’s nuclear test,"For Hyundai Asan’s profits, it is urgent to stabilize the Mt. Geumgang tour. Since the North’s nuclear weapon test, about 60 percent of people slated to visit the North Korean mountain resort canceled their reservations. The situation has since stabilized slightly. South Korean companies that have moved to the Gaeseong industrial park also welcomed the milder tone of the U.N. resolution. An official of Shinwon Co., a clothing manufacturer, said, "It’s too early to say for sure, but if the U.N. sanctions are not strengthened, the Gaeseong industrial park will be able to be maintained." Some observers consider the U.N. resolution as an opportunity, in that anxiety that Gaeseong firms had previously felt has now been eased. Yu Dong-uk, chairman of Daewha Fuel Pump, said, "We hold a daily meeting with heads of corporations and workers dispatched to Gaeseong, and considering the contents of the U.N. resolution and reactions of the government, [at the daily meeting] we felt a sense of recovered stability. Companies are operating normally, and Daewha plans to overcome the current situation by increasing exports of products made in Gaeseong through buyers from the Middle East and Europe," added Yu. A plan to finish selling off spots for businesses at the Gaeseong complex, which was due to begin this month but was postponed because of the North’s nuclear test, will be difficult to be started for the time being. The Korea Land Corporation, which has invested 70 billion won (US$71 million) into the Gaeseong complex, predicted that there would be no serious damage to its business, but it worries if there will be any investment interest left in the industrial park. An official of the corporation said, "Neighboring countries including Japan can demand the suspension of inter-Korea economic cooperation projects, and there is a possibility that tougher sanctions will be imposed against the North following another nuclear test. In that case, the prospect of South-North economic projects will be uncertain, and the sale of lots at Gaeseong won’t be easy."
