hankyoreh

Amid an international standoff in the fallout of North Korea’s October 9 nuclear test, ShinWon Corporation Chairman Park Sung-Chul expressed his optimism about the future of the Kaesong (Gaeseong) Industrial Complex, a joint Korean project located just north of the border between the two Koreas.

"A bud of hope is in flush at Kaesong," Park said in an interview with the Hankyoreh. ShinWon, which makes clothing, is cited as one of the most successful companies operating in Kaesong.

Park said that he believed Kaesong would see no further crises like the ripples of uncertainly and criticism felt after the North’s detonation of a nuclear device. But even right after North Korea tested its nuclear device, Park said, workers at the ShinWon plant in Kaesong were busy at work, with no signs of tension.

Park said the negative effects from a political rift between Seoul and Pyongyang are temporary. "At the Kaesong Industrial Complex, the sons and daughters from the two Koreas are working. Even if a war breaks out, the Kaesong complex will be the last place of shelter, because no side will level a gun at their own children," he said.

His optimism was based on specific results. In quality comparisons with ShinWon’s China plant, products made at the Kaesong complex were 1.3 times higher in quality than those of the China plant in the second half of last year.

There were also gains in productivity. In 2006, the Kaesong plant produced 25,000 items a month, compared with 15,000 items in 2005. "ShinWon has five plants at home and abroad. Our plant in Kaesong turned profitable six months ahead of the other plants," Park said.

In Kaesong, ShinWon had originally planned to complete a first plant by the end of 2004 and built a second plant by the end of 2006. A third plant had been planned to build in 2007. However, as the first plant proved successful, ShinWon has decided to build the second and third plants ahead of schedule. On February 8, ShinWon will complete the construction of the two plants and hold a session for investors at the Kaesong complex.

Park said ShinWon will produce clothing that meets worldwide top quality standards. "North Korean workers are very intelligent. Within three years, their productivity will pass that seen in South Korean plants," Park said.

Park emphasized that he had no political approach to the Kaesong industrial complex, saying only that the Kaesong complex should be sustained to keep peace on the Korean peninsula. "For the first several months after the plant’s operations, there was no dialogue between North Korean and South Korean workers. However, after two years of working at the same place, they now mingle like a family," the chairman said.

"The pace of opening in North Korea will accelerate," Park said. "To speed up this opening, the best way is to provide jobs."

Some critics say inter-Korean economic cooperation projects are ‘unconditional aids’ to North Korea. However, Park disagreed with this criticism. "The monthly salary of a North Korean worker at the Kaesong complex is about 50,000 won, a equivalent of a little more than US $ 50. How they could say that?” Park pledged to do his utmost efforts for the development of the Kaesong complex, despite the difficulties the project might face from political issues, he said.

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