hankyoreh

In the first official inter-Korean meeting since the start of the administration of President Lee Myung-bak North Korea proposed renegotiating all of the special measures its granted regarding the Kaesong (Gaeseong) Industrial Park. While it is somewhat unexpected to have North Korea focusing on business matters at a time when relations are so poor, we cannot assume its motive is entirely about its “cash intake.” Indeed, since it has opened a channel for possible dialogue, it is now time for South Korea to offer a prudent and profoundly different kind of response.

North Korea is going too far, both in form and content. Not only is it saying it wants to change the land lease at will, but it also demands to renegotiate details about usage fees which would result in a major increase in burden for South Korean companies operating there. The demand that wages for North Korean workers are raised, too, goes against the agreement‘s limits on annual wage increases. It is nonsensical for North Korea to unilaterally notify South Korea of its intentions and to act in an arbitrary manner that may threaten Kaesong’s stability.

Just what North Korea’s real motive is remains unclear. It might be wanting to change the existing framework of things under the view that it has given South Korean companies a lot of benefits compared to those from China and Vietnam. However, it may also want to close down the project in a manner that passes the responsibility to South Korea, after it makes the conditions in the Kaesong Industrial Complex unattractive for businesses. A broader political interpretation could infer that North Korea wants to give primacy to negotiations with the U.S. while delivering a curveball to South Korea. It is notable how North Korea says it cannot maintain special privileges conferred in the Kaesong contracts at a time when relations have gone bad as a result of what they consider to be South Korea’s “hostile policy,” openly revealing its displeasure with inter-Korean relations.

Whatever its intentions are, there does not appear to be any reason for the South Korea‘s government and companies to refuse to confer together. If this is about purely business matters, they can find some reasonable points of compromise through dialogue, and even if not, perhaps clarify points of contention during the course of negotiations. It will only hurt the Kaesong project if they proceed to take things slowly, trying to assess North Korea’s intentions without engaging in direct talks.

The government should go even farther, however, and use this as an opportunity to improve inter-Korea relations. Although one would like to see a separation between government and business matters, the Kaesong Industrial Park project is a matter that is inseparable from inter-Korean relations. Relations have to be stabilized for Kaeseong to be able to continue. In some respects, it is also serves as a safety valve, one that prevents inter-Korea relations from taking a turn for the worse. Once a framework for dialogue is in place, Seoul could then of course expand the agenda and talk about other matters.

It goes without saying that both North Korea and South Korea have to make each efforts if dialogue is going to proceed in a smooth manner. The most urgent matter is the fact North Korea has detained a South Korean man, a Hyundai Asan employee, for more than three weeks and has not yet granted South Korea access. It is inevitable that Pyongyang is going to have to reveal its true intentions regarding resolving the situation. South Korea, for its part, is going to have to be clear about its decision to fully participate in the U.S.-led Proliferation Security Initiative (PSI), something that North Korea clearly opposes. South Korea will have to put its PSI card away.

Both sides have committed wrongs contributing to the souring of inter-Korean relations, but instead of playing the blame game, it is time to turn things around. The Seoul government, in particular, needs to lead the way in improving relations and use a consistent strategy in making the most of this opportunity.

Please direct questions or comments to [englishhani@hani.co.kr]