Seoul axes Gaeseong Industrial Complex

Unification Minister Hong Yong-pyo announces the government’s decision to shut down the Gaeseong Industrial Complex in North Korea, at the government complex in central Seoul, Wednesday. The shutdown of the complex, the last remaining symbol of inter-Korean reconciliation, came in response to North Korea’s launch of a long-range rocket, Sunday. / Korea Times photo by Hong In-ki

By Yi Whan-woo

Unification Minister Hong Yong-pyo said Wednesday that South Korea is shutting down the Gaeseong Industrial Complex (GIC) in North Korea as a punitive measure against Pyongyang’s long-range rocket launch and nuclear test.

He said North Korea has continued to pursue nuclear and ballistic missile programs in defiance of United Nations’ sanctions and has funded these from money supplied by South Korea’s investment in the joint industrial park in Gaeseong.

Seoul invested 1.19 trillion won ($850.9 million) at both the governmental and civic level since the GIC opened in 2004, including 616 billion won in cash, according to Hong. Of the total, 132 billion won was made in 2015 alone.

“We’ve been trying to ensure that the GIC meets international standards but North Korea instead exploited our efforts,” Hong said during a briefing at the government complex in downtown Seoul.

“We’ve decided to completely suspend operations at the GIC to prevent our investment there from being used to develop nuclear warheads and missiles while making sure our enterprises will not be victimized by Pyongyang.

“We’ve notified our decision to the North Korean authorities and asked for their cooperation in pulling out our workforce there.

“The government will set up a task force to support our companies accordingly.”

His comments came after North Korea launched a long-range rocket, Sunday, following a nuclear test on Jan. 6. South Korea and other U.S.-led allies suspect Pyongyang’s rocket program is a cover for tests of ballistic missile technology.

The GIC was last shut down in April 2013 when the Kim Jong-un regime pulled its workforce there out.

A total of 124 South Korean enterprises have 50,000 North Korean employees at their plants in the GIC. Some 184 South Koreans, including company executives, stay there.

A Cheong Wa Dae official said that the move concerning the GIC came after President Park Geun-hye ’s approval of the measure in line with a conclusion reached at a National Security Council (NSC) meeting, Wednesday.

The President cited a need for “unprecedented measures” amid concerns that the U.N Security Council would not be successful in its sanctions against North Korea.

Hong warned that such a situation may lead to nuclear domino effect by providing countries in the region with a pretext to arm themselves with nuclear weapons.

“North Korea’s provocations are intolerable acts that challenge peace and security on the Korean Peninsula as well as the international community,” Hong said.

“However, there have been no signs that Pyongyang will give up its development of nuclear weapons and long range missiles.

“Under such circumstances, it became necessary to take a special measure against North Korea for it to pay a price for its wrongdoings,” he added.

Rival political parties in the South showed mixed responses over the government’s decision.

The ruling Saenuri Party welcomed the measure, saying, “It was inevitable to end a vicious cycle of North Korean provocations.”

“The international community has voiced together and called for stern and strong sanctions against Pyongyang,” the party’s chief spokesman Kim Young-woo said. “And we had to send a strong message toward North Korea.”

He asked the government to put a priority on the safety of South Koreans in the GIC and make sure that property damage will be minimized.

The main opposition Minjoo Party of Korea (MPK) asked the government to re-consider its decision.

“It’s possible that our measure will result in a permanent shutdown of the GIC,” MPK spokesman Kim Sung-soo said. “The GIC was the only remaining link in inter-Korean ties and stopping its operation means a complete suspension of Seoul-Pyongyang relations.”

He stated that the GIC was a symbol of inter-Korean reconciliation.

“The party is concerned that the situation on the peninsula will regress to the Cold War era.

“And it will hurt our enterprises which will suffer from the government’s measure, which I’d say is inappropriate and reckless.”