Saturday, May 15, 2010

Future of industrial complex on other side of DMZ is in doubt

Talk about a tough commute.

Kim Na-rae regularly travels three miles into enemy

territory inside North Korea to work as a clothing embroidery

designer — ignoring threats that the leadership there will

someday turn Kim’s homeland into a “sea of fire.”

She is one of the 1,000 or so South Koreans who routinely

venture across the Demilitarized Zone into North

Korea to work at the Kaesong Industrial Complex, even

though the two countries are technically at war and come

close to resuming hostilities a couple of times each year.

Last week, South Korean President Lee Myung-bak met

with two former presidents, Chun Doo-hwan and Kim

Young-sam, who reportedly suggested shutting down

Kaesong in response to North Korea’s suspected role in the

March 26 sinking of the Cheonan, a South Korean

warship.

The square-mile-plus complex — home to about 120 South

Korean companies and more than 43,000 workers — was

developed under former South Korean President Kim Dae-

jung’s “Sunshine Policy” of promoting North-South

relations and business opportunities.

It was launched during the administration of former

President Roh Moo-hyun.

However, long-term plans to expand the complex to more

than 25 square miles, 2,000 companies and 600,000

workers are frequently stalled by continuing friction between

the North and the South.

The future of the 5-year-old complex is once again in

doubt. In a statement released in early April through the official

Korean Central News Agency,the North said it would

“entirely re-evaluate” its involvement in the Kaesong

Industrial Complex if relations continue along a

confrontational path.

Last week, South Korean media reports — citing an

unnamed South Korean Unification Ministry official —

said North Korean military officials who inspected the

complex expressed concerns the South could use high-rises

there to spy on the North or sneak troops into the country

through the complex’s water system. The inspection

intensified speculation the North might end or suspend

its participation in the complex.

In a dispute last week, the North confiscated five

buildings owned by South Korea at Diamond Mountain —

a jointly operated tourist resort in North Korea that,

much like the industrial complex, was designed to benefit

South Korean businesses and the North Korean

economy.

The North said it was seizing the buildings as

compensation for losses it has sustained since the South

stopped sending tours in 2008 after a North Korean

soldier shot a South Korean tourist who reportedly

wandered near a restricted area. The North said the

shooting was accidental.

During its short history, the industrial complex “seems

to hang there in limbo … swinging back and forth

depending on the political winds at the time,” according

to David Garretson, an international relations professor

at the University of Maryland’s University College in

South Korea.

For her part, Kim said she plans to continue working,

trying to shut out the political posturing.

“I was very nervous and afraid about going into North

Korea at first,” she said. “But I’ve found out [North

Koreans] are more pure and naive than South Koreans.

They don’t easily get angry. They just work hard.”

Cheap labor When the complex opened in December 2004,

benefits for both countries were clear.

The impoverished North would open a flow of cash into

the country through land leases and wages that factories

paid to tens of thousands of North Korean workers.

Businesses in the South would get access to low-paid

workers for the labor-intensive production of clothes,

electronics equipment, kitchen appliances and more.

If not for Kaesong, those businesses would have to look

to open factories in such countries as Vietnam, Cambodia

or Indonesia, according to Ok Sung-seok, president of

the Nine Mode Co. and vice-chairman of the Kaesong

Industrial Park Corporations Association.

Kaesong factories now produce goods worth more than

$250 million a year. North Korean workers there make

about $65 a month, but can earn as much as $90 by

working overtime in addition to their regular 45-hour

workweeks, Ok said.

South Koreans work primarily in managerial positions,

and their pay varies depending on their employer. Most

work three or four days a week, and while some return

to their homes each day, many stay overnight between

workdays in dormitorylike accommodations.

Canadian Navy Lt. Cmdr. Hugh Son, the United Nations

Command Military Armistice Commission’s corridor

control officer, said Kaesong workers have told him there

are no armed North Korean guards manning the

complex, but there is always “a presence” of security

personnel.

Kwak Sang-bae, president of the Chung Song Trade Co.

at Kaesong, said every business in the complex has a

North Korean government official assigned to oversee

and represent North Korean workers.

To Ok, the arrangement at Kaesong goes beyond

commerce.

“I’ll never forget the touching moment of seeing South

Koreans and North Koreans working together, side by

side … when my factory first opened,” he said.

“Cultivating and spreading the spirit of freedom to the

Kaesong people is very inspiring.”

Ok fears further growth in factories could be jeopardized

“because of the latest aggravated, unstable situation

between the two Koreas.” Convoy crossings Because relations

between the two Koreas have been tense even in the best of

times, transportation between South Korea and the industrial

complex is complicated.

For the project to begin, both countries had to clear what

is now the Western Transportation Corridor — a yearlong

effort that, on the South Korea side alone, required the

removal of 1,700 land mines, Son said.

Now 20 DMZ convoys cross each day, with workers from

the South going back and forth and materials heading

North and manufactured goods heading South.

Everybody must clear customs and immigration in both

countries, going both ways, and no one is allowed to

cross the DMZ without being granted clearance at least

three days in advance, Son said.

After manifests are checked and immigration and

customs are cleared, vehicles heading north line up for

inspection. South Korean and U.N. vehicles then escort

them as a convoy from the southern boundary of the

DMZ to a point close to the Military Demarcation Line —

the official border between the two countries and the

midpoint of the DMZ.

After the convoy crosses the border, two North Korean

military jeeps take over escorting duties to the industrial

complex.

The corridor has been closed to vehicles on occasions

when tensions between the two countries have been

high. Son said the last time was for two days during the

2009 U.S.-South Korea Key Resolve/Foal Eagle exercise,

an annual event the North routinely condemns as an act

of aggression.

Small talk Ok said North Korean and South Korean workers at the

complex are free to talk with each other about anything,

except politics or government.

“We usually talk about our families, like how your

children study well at school, or about our lives,” he said.

“Listening to them, I cannot help thinking that there is a

huge difference in the standards of living between us.

“And the lack of food makes them not grow tall enough.

They are generally shorter than us.”

Kwak said that when his company opened a men’s

clothing factory in the complex in 2007, Moon Pies were

handed out to all the workers.

None of the North Koreans ate their snack.

“Instead, they put these very small pies into their

pockets to bring home so they could give them to their

children, even though they were hungry themselves,” he

said. “I got choked up.”

Nationalism does sometimes find its way into

conversations.

Yu Eun-jae, who is in charge of distribution for a cell

phone parts manufacturer in the complex, said he

stopped sharing details of his personal life at work,

because a North Korean worker kept saying how far

superior his country’s education system is compared to

South Korea’s.

‘Going to universities in North Korea is free,’” the

worker would say, according to Yu. “‘How can you send

your children to universities that are so expensive in

South Korea?’

Kwak said he believes North Korean workers at the

Kaesong factories enjoy an atmosphere of freedom they

would not find in state run businesses in the North.

Still, he added, “I am afraid and worried that we could be

in danger if hostilities get worse. But, as a businessman,

I am trying to do my best under the circumstances.”

Garretson doesn’t believe either country will “pull the

plug” on the complex, because too much would be lost

for both sides.

“It is a point where they meet, so there’s going to be

friction,” he said.

The complex for both sides “is very profitable. At the

same time, the communication is there for both sides,”

said Son, the Canadian lieutenant commander with the

U.N.

“I’m ethnically Korean … and I hope things work out,” he

said. “I would love to come back here one day and take

a tour of North Korea.”

http://www.stripes.com/articleprint.asp?section=104&article=69686

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