11. The Case for Kaesong: Fostering Korean Peace through Economic Ties
- Author:
- International Crisis Group
- Publication Date:
- 06-2019
- Content Type:
- Special Report
- Institution:
- International Crisis Group
- Abstract:
- The Kaesong Industrial Complex, closed since 2016, was the most successful joint economic venture undertaken by North and South Korea. Reopening the manufacturing zone, with improvements to efficiency and worker protections, could help broker wider cooperation and sustain peace talks on the peninsula. What’s new? In 2016, South Korea shuttered the Kaesong Industrial Complex, breaking a modest but productive connection between the two Koreas. Crisis Group’s analysis sheds new light on the economic performance of firms operating at the Complex, demonstrating that the benefits for the South were greater than previously understood. Why does it matter? Beyond helping restart the stalled peace process, a deal to reopen the Complex in exchange for a proportionate step toward denuclearisation by North Korea could produce mutual economic benefits that help sustain South Korean support for talks and encourage Pyongyang’s commitment to peaceful relations. What should be done? As part of any deal to reopen the Complex, Seoul and Pyongyang should take steps to address problems that previously kept it from reaching its potential. The more efficiently, profitably and fairly it works, the better the Complex can help foster and maintain stable, peaceful relations between the Koreas.
- Topic:
- Economics, Bilateral Relations, Negotiation, and Peace
- Political Geography:
- Asia, South Korea, North Korea, and Korea