By Kang Hyun-kyung
Staff Reporter

South Korean businesses operating in the joint economic zone in the North Korean border town of Gaeseong have seen an increase in demand for their products since the North eased border crossing restrictions in August.

But employers there appear less than thrilled by the news due to labor shortages.

According to an association of 115 companies operating in the Gaeseong Industrial Complex, about 26,000 manufacturing jobs are opening for North Koreans.

These new jobs are the combined result of increasing demand for commodities produced there and the rising number of businesses seeking opportunities in the complex. The minimum wage for these workers is approximately $58 a month.

Lee Im-dong, director of the association's secretariat based in Seoul, was skeptical about the jobs being filled in the near future.

"North Korean authorities were trying to find solutions to labor shortages, but their hands are tied mainly because of the poor industrial infrastructure there," he told The Korea Times.

The city of Gaeseong has a population of about 100,000. This indicates that there would be virtually no remaining labor force available inside the city given that over 40,000 North Koreans in total are already employed at the industrial park.

Therefore, employers need to look beyond the city to fill the vacant jobs.

Experts say the combined population of Gaeseong and its adjacent areas is somewhere between 200,000 and 300,000, and that these people were hirable.

"The problem is that there is no public transportation to bring workers living on the outskirts of Gaeseong to the industrial park. The site has no dormitories for these workers, making the situation worse," Im said.

Unless these setbacks are settled, he said, it will be nearly impossible for employers to fill the 26,000 posts.

Earlier, the two Koreas agreed to build accommodation for workers living on the outskirts of Gaeseong and construct roads for commuters. The capacity of the planned dormitories is about 15,000 workers.

But these commitments have not been fulfilled.

The unification ministry affirmed that no progress can be made unless the two sides reach an agreement to set up an institution to guarantee the safety of South Koreans there.

A Hyundai Asan worker was released in August after he was held by the North Korean authorities in March for criticizing the North Korean regime and encouraging a North Korean woman to escape from the communist state.

Lee Jong-joo, vice spokeswoman at the ministry, told The Korea Times that the hostage case was not completely settled as the North was not cooperating in introducing binding safety rules to protect South Korean workers.

"We've brought up the safety issue at previous working-level talks on numerous occasions. But Pyongyang did not respond to our call," Lee said.

In a telephone interview with The Korea Times, Yoo Wook, a lawyer working with business law firm Bae, Kim & Lee, called on policymakers to think outside the box when dealing with the joint economic project.

"We should keep in mind that this industrial site has survived, despite all the scare tactics and threats when inter-Korean relations hit snags," said Yoo, who handles issues regarding the Gaeseong complex at the law firm.

"On the North's side, it is the only economic zone that is working and helping its economy. On the South's side, small and medium businesses are seeking business opportunities there. This is truly a win-win for the two Koreas."

hkang@koreatimes.co.kr