N. Korea wishes to revisit inter-Korean Kaesong complex agreements

Posted on : 2009-04-22 11:34 KST Modified on : 2009-04-22 11:34 KST
Analysts interpret Kaesong’s fate hinges on South Korea’s PSI participation
 April 21.
April 21.

North Korea told South Korea on April 21 it wanted to “reexamine the contents of standing contracts between North Korean and South Korean authorities regarding the Kaesong (Gaeseong) Industrial Park.”

A Seoul government official said that during a meeting between the two sides North Korea said South Korea had not abided by its agreements regarding Kaesong. North Korea expressed wanting to reconsider the deal. Formally speaking, North Korea sold Hyundai Asan a 50-year land lease to the Kaesong Industrial Complex.

The Kaesong Industrial Complex could be at a major crossroads.

The April 21 meeting took place at North Korea’s request, following an invitation to “talk about a serious matter” from the Bureau of Central Special District Development that was issued through the Kaesong Industrial District Management Committee on April 16.

Kim Young-tak, a unification ministry official, and six others left South Korea by land at 8:46 A.M to attend the meeting. They made contact with “liaisons” on seven occasions throughout the morning and afternoon while waiting at the Kaesong Industrial District Management Committee office. Later at 8:35 P.M., they met for twenty-two minutes with Kim Il Kuk, chief director at the Bureau of Central Special District Development. The brief meeting marked the first time since the inauguration of President Lee Myung-bak that there has been inter-Korea contact between non-military officials.

North Korea refused to grant access to the Hyundai Asan employee who has been detained since late March, something South Korea had formerly stated was a precondition for meeting. Perhaps aware they might be accused by South Korean conservatives of going all the way to Kaesong just to be notified in person about North Korea’s intentions, the South Korean delegation was particularly adamant on the point of access, but to no avail.

Analysts are interpreting North Korea’s announcement to revisit Kaesong project contracts as a move to place the ball in Seoul’s court, forcing Seoul to choose between shutting Kaesong down or expressing a strong policy interest in its development and expansion.

An executive of one South Korean company located in the complex, however, suggested calling for an examination of existing contracts “could also be seen as meaning North Korea is willing to engage in discussions on how to proceed with Kaesong.”

Seoul officials say that in talking about wanting to revisit inter-Korean agreements about the complex, North Korean officials also issued what was described as a warning in response to Seoul’s decision to become a full participant in the US-led Proliferation Security Initiative (PSI).

Meanwhile, observers speculate that the Cheong Wa Dae (the presidential office in South Korea or Blue House) is agonizing over whether to temporarily delay the timing of the announcement of its decision to fully participate in PSI or to delay it indefinitely. Many will be watching to see what President Lee’s final decision is on the matter.

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

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