Korean Peninsula Looks More Divided than Ever

21 03 2016

Kaesong Industrial Park closing(AFP, Daily Mail, 12 February 2016) North and South Korea’s perennially volatile relations seem headed for a new and potentially dangerous low, with all official lines of communication cut off and a host of tension-raising issues on the near horizon.

The two rivals, who have remained technically at war over the past six decades, have faced and weathered numerous crises in the past, but the current situation feels particularly grim in the wake of the North’s recent nuclear test and long-range rocket launch.

Any hope of compromise or dialogue seems to have been indefinitely shelved, with a leader in Pyongyang confirming an unwavering commitment to nuclear weapons development, and a counterpart in Seoul determined to react firmly — and proactively — to any North Korean provocation.

And the standoff is taking on wider Cold War-like dimensions, with the divisions between the main parties to the North Korean nuclear issue — China and Russia on one side, the US, South Korea and Japan on the other — increasingly stark and antagonistic.

The new mood on the divided peninsula played out this week in the effective termination of the sole remaining North-South cooperation project — the Kaesong joint industrial zone lying 10 kilometres (six miles) over the border in North Korea.

– A talisman for ties –

Despite its obvious vulnerabilities, Kaesong had taken on a talismanic image by riding out pretty much every inter-Korean crisis thrown up since it opened for business in 2004.

“In a way, it’s a miracle it lasted that long,” said Leonid Petrov, an expert on North Korea at the Australian National University.

But on Wednesday, Seoul announced it was suspending all operations of the 124 South Korean companies in Kaesong, and yesterday Pyongyang responded by expelling all the firms’ managers and freezing their factories’ assets.

The North placed the complex under military control, while the South cut off all power and water supplies.

“I don’t see any way back for Kaesong now,” Petrov said. “It’s gone too far and there’s no real will in the North or South to work it out.”

Kaesong was born out of the “sunshine” reconciliation policy of the late 1990s.

One of the roles initially envisaged by Seoul was of Kaesong as a beachhead for market reforms in North Korea that would spread from the complex and expose tens of thousands to the outside world’s way of doing business.

Although that vision never materialised, some analysts still mourned its demise for closing a small but crucial open door on the world’s most heavily-militarised border.

– ‘Great leap backwards’ –

“With no Kaesong, South and North Koreans will no longer be in contact anywhere on a regular basis. That is a great leap backwards,” Aidan Foster-Carter, a Korea expert based in Britain, wrote for the NK News website.

Chang Yong-Seok, a senior researcher at the Institute for Peace and Unification Studies at Seoul National University, said one of Kaesong’s most important contributions had been to help keep inter-Korean rivalries in check.

“The Koreas both had a stake in Kaesong so they were able to restrain each other in some ways, but now that has all gone out the window,” Chang said.

The space for communication between Seoul and Pyongyang shrank further on Thursday, when the North announced it was cutting the last two remaining communication hotlines with the South.

The hotlines themselves have never been used for conversational diplomacy, but they were key to setting up meetings where such discussions could take place.

The severing of all contacts comes ahead of a period when crisis-control talks could be most needed.

– Tensions ahead –

North Korea will likely react strongly to whatever sanctions the UN Security Council eventually agrees to impose over its nuclear test and rocket launch.

Then in March, South Korean and the United States will kick off a series of annual military drills that the North views as rehearsals for invasion and which always see a spike in tensions.

Pyongyang’s claims of provocation over the exercises should be especially shrill this time, as Seoul and Washington also begin talks on deploying an advanced US missile shield in South Korea.

“South Korea and the US have said the drills will be on an even larger scale than usual which is sure to meet a big backlash from North Korea,” said Chang.

“So, with all this, I think we’re going to see tensions running at a level incomparable to previous years,” he added.

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S. Korea postpones international investment roadshow at Kaesong

15 10 2013

kaesong-complex-dprk(BY OLIVER HOTHAM, NK News, OCTOBER 15, 2013) SEOUL – An investment roadshow aimed at promoting foreign investment for the joint-run Kaesong industrial complex has been postponed, the South Korean government announced on Monday.

The event, intended to be held at the end of the month on October 31, had been planned to encourage foreign companies to set up factories in the jointly run Kaesong industrial complex, which currently only hosts South Korean companies that use North Korean labor. North Korea was informed of the postponement on Friday, and a new date for the show is yet to be set.

A Unification Ministry spokesperson who declined to be name told Agence France Presse that the delay was “inevitable” due to recent deteriorations in cross-border relations and “the lack of progress at talks with North Korea to enhance communication, and travel to and from Kaesong”.

“As is known,” the spokesperson said, “negotiations on Internet connectivity, mobile phone use, utilization of radio frequency identification tag to ease travel and customs inspections have made no headway since the North called off working-level talks for the Sept. 26 meeting”. The spokesperson said the government had decided that because of this failure to agree on matters crucial to foreign investors, they saw no point in going ahead with the roadshow.

“South Korea’s decision to postpone an investor-related event in the Kaesong Industrial Park is another indication of President Park’s “Trustpolitik” failure,” Professor of Korean History at Australia National University Leonid Petrov told NK News, explaining that “trust in inter-Korean relations is not going to be restored without concrete and mutually beneficial projects, such as Kaesong and Kumgangsan”.

“Only by ending the Korean War and formally recognizing one another can South Korea and North Korea improve the investment climate,” Petrov argued. “Without such changes, business people (both Koreans and foreigners) will remain hostages of Seoul and Pyongyang’s political games”…

See the full text of the article here…

 





North Korea closing Kaesong complex after worker recall

8 04 2013

North Korean workers at the South-owned Shinwon clothes company in Kaesong industrial park(by Tania Branigan, The Guardian, 8 April 2013) North Korea has said it will recall more than 50,000 workers from the industrial park it runs with the South and consider shutting it permanently, spelling an end to inter-Korean co-operation. Pyongyang has engaged in weeks of angry rhetoric in response to a UN security council resolution expanding sanctions following its third nuclear test and to ongoing joint exercises by South Korean and US forces.

But analysts noted that while the latest move by Pyongyang was substantive, it was also a non-military one made amid concerns that the North might be planning another missile or nuclear test. The Kaesong industrial complex has been a much-needed source of income for the impoverished North and a cheap source of workers for labour-intensive South Korean firms.

The statement from a senior party Workers’ party official, carried by the KCNA state news agency, warned that operations would be suspended while the future of Kaesong was reviewed. “The zone is now in the grip of a serious crisis,” Kim Yang Gon said. “It is a tragedy that the industrial zone, which should serve purposes of national reconciliation, unity, peace and reunification, has been reduced to a theatre of confrontation between compatriots and war against the North.”

He did not mention the 475 South Korean managers still at Kaesong. The North has prevented personnel and supplies from entering from the South since last week. According to Associated Press, about a dozen of more than 120 South Korean companies at Kaesong have halted production owing to lack of supplies.

“The temporary suspension is likely to become the final sigh of the sunshine policy as we knew it,” said Leonid Petrov, an expert on the North at Australian National University. “It’s understandable that as they proclaimed war it would be inconsistent with the desire to produce sneakers and LCDs at the same time … North Korea is sending a strong message to prove that money means nothing for the regime and its nuclear missile programmes are not for sale and not negotiable.”

Seoul’s policy of free-flowing aid and engagement was ended by South Korea’s previous president, Lee Myung-bak, who took office in 2008. Petrov argued future attempts at co-operation would have to start from scratch, adding: “It is unlikely it will happen under Park Geun-hye given the conservative origins of her party. “Many people blamed the sunshine policy for being ineffective, but that’s not correct: it was too successful for its time. It achieved a lot but was too dangerous for the North and too expensive for the South.”

James Hoare, the former British chargé d’affaires in Pyongyang, said: “It may be that among the military there are those who never liked [Kaesong] and saw it as a Trojan horse. It may be they’ve decided they won’t carry on with it, but they could still row backwards. It is not militarily threatening. It’s a gesture which to me looks foolish from the North Korean point of view, but it isn’t firing rockets or doing a nuclear test.” He pointed out that attempts at engagement with the North had often stumbled, from the early 1970s onwards. But he added: “It’s very unfortunate for the workers, who will lose their wages and other perks.”

Stephan Haggard of the Washington-bade Peterson Institute, an expert on North Korean economics, wrote last year: “For North Korea, [Kaesong] is a cash cow that even hardliners have been loath to push the way of the Mount Kumgang project. Since 2004, total wage payments for North Korean workers in the KIC has totalled $245.7m, rising from $380,000 in 2004 … to $45.93m in the first half of 2012. For Pyongyang, even hardliners can see that this is a no-brainer.”

One possibility is that the North believes it must threaten a clearly valuable asset to send the message that it is serious in its stance. Another possibility mooted by experts is that it could hope to expropriate the factories and hand them over to members of the elite, bolstering domestic support for the regime.