When it’s a hot summer day in July, one often has to make the strategic calculation of what particular circumstances would require one to leave the friendly confines of a place with working air conditioning.
March was expected to be a difficult month for inter-Korean relations with the joint U.S.-ROK military exercises taking place and the lack of progress between the two Koreas in January and February.
While the process of internationalizing Kaesong may be slow, production seems to be bouncing back to normal levels.
Since reopening Kaesong last year, the German manufacturer, Groz-Beckert, is the only international firm to invest in the complex. However, a new action by North Korea may further set back the prospects of attracting additional firms.
South Korea’s ambition to become a regional free trade hub in East Asia took another step towards reality as South Korea and China announced the outline of a conclusion of their bilateral FTA negotiations
This will make Groz-Beckert the second foreign investment in Kaesong and the first since the complex reopened last fall.
In the aftermath of last spring’s shutdown of the Kaesong Industrial Complex, the Park administration has sought international investment to serve as a bulwark against future actions by North Korea that would endanger Kaesong’s operations.
As we look back at the events that helped to shape 2013, we are also looking back the predictions The Peninsula made in our annual “10 Things to Watch for on the Korean Peninsula in 2013” blog.
If North Korea is attempting to regain some leverage in inter-Korean talks by stalling on family visits, the South Korean government could again face a difficult decision on whether trust can be built up with North Korea.
The fear that North Korea’s suspension of activities at the Kaesong Industrial Complex would have broader implications began to materialize last week when Daewha Fuel Pump Industrial Ltd. announced it failed to deliver parts in time to its Indian customer. Other companies are beginning to publicize their setbacks as well.