Kaesong Closure and the U.S.-South Korea Summit
Thursday, May 2, 2013
South Korean vehicles return from the inter-Korean Kaesong Industrial Complex in North Korea to the customs, immigration, and quarantine office just south of the demilitarized zone separating the two Koreas. (Lee Jae-won/courtesy Reuters)
The muting of North Korean threats toward the United States has dropped it from the American headlines in recent weeks, but stepped up inter-Korean tensions over the closure of the Kaesong Industrial Complex (KIC) have consumed the time and attention of South Korean policymakers. Since April 3 Pyongyang has blocked the entry of South Korean people and goods for the complex and on April 9 withdrew its North Korean workers. In response, South Korea issued an ultimatum on April 25 demanding that Pyongyang agree by that day to negotiations on renewed access to the site. KIC hosts 123 South Korean companies, provides employment for 53,000 North Korean workers, and generates labor and tax payments to North Korea, which in 2012 amounted to $90 million in cash payments. (For an excellent review of Kaesong’s history and development, see Patrick Cronin’s CNAS report “Vital Venture.”) Read more »















