hankyoreh

September 2009. 　

The General Bureau for Central Guidance to the Development of the Special Zone, the North Korean institution in charge of administration for the Kaesong Industrial Complex, sent notification to South Korea on Sunday that it would be continuing efforts to develop the complex and prohibiting the removal of facilities registered as company property within the complex. An official with the Unification Ministry said Monday that this message was delivered verbally to the Kaesong Industrial District Management Committee by an official with the bureau.

The General Bureau announced that all facilities and goods within the complex could only be removed after passing through the North Korean revenue office located within the complex. The announcement also stated that the removal of facilities registered as company property would be prohibited as a rule, that companies with financial obligations such as wages would only be able to remove items after first settling their obligations, and that it would be prohibited to idle North Korean employees by removing facilities, raw materials or subsidiary materials. The bureau said that rental equipment could only be removed after confirmation of rental documentation, and that repair equipment could only be removed after verification of working order, repair time and conditions for reimportation.

“South Korea’s announcement of restriction measures such as reducing the number of employees staying at the Kaesong Industrial Complex is a preliminary effort toward closing the Kaesong Complex,” the General Bureau also declared. “If the Kaesong Industrial Complex closes in the future, this is South Korea’s responsibility.”

Analysts have interpreted this statement from North Korea to mean that it does not intend to preemptively close the complex any time soon.

“They are trying to prevent South Korean companies from withdrawing beforehand by making the equipment removal conditions exacting,” said a Unification Ministry official.

At the same time, observers say the move also reflects a determination by North Korea to prepare for the eventuality of a closure resulting from heightened inter-Korean tensions by laying responsibility at the feet of South Korea and minimizing their own losses.

Moon Chang-seop, president of Samduk Tongsang, a tenant company in the complex, said, “Just as companies that go into China cannot just close up their factories whenever they wish, North Korea is presenting a kind of ‘insurance’ for a worst-case scenario.”

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