Kaesung Industrial Complex in North Korea.

plex is a result of the attempt to improve relations between South Korea and North Korea made by Hyundai Group beginning in 1998 that coincided with the Republic of Korea’s policy (Manyin 5). In addition to this, several dozen South Korean companies had facilities there which include chemical, machinery, textile and electronics factories (Britannica.com). Most of the employees are from North Korea, but still, there are people from southern part too and all together they create a cheap labor for the South. Moreover, it is a duty-free zone that has no restrictions on the use of foreign currency or credit cards (Manyin 6). However, the political situation also plays an important role in the relationships between two countries. For example, the deteriorating inter-Korean relations in 2013 led to both countries’ withdrawal of their employees from the industrial zone. Furthermore, this city is an important cultural and educational center. There were many tombs, palaces and temples which were destroyed during the war, but hopefully many of them were restored and were designated a UNESCO World Heritage site in 2013 (Britannica.com).

The Kaesong Industrial Complex (KIC) is an economic enterprise in which companies of southern Korea have set up factories in a North Korean enclave ten miles north of the demilitarized zone. Although, it is a way for South Korean companies to use cheap labor from North Korea for low-end products. The president Roh Moo-hyun who was a liberal, tried to make Kaesong economically viable. He provided the foreign markets with goods which were produced in the complex. In addition to this, his administration made a lot of attempts to gain a duty-free status for products of Kaesong. Roh tried to place the language in the KORUS FTA. The United States refused to include this language in the agreement because it would give certain benefits to North Korean regime. It is actually the last example of the inter-Korean cooperation projects

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