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2017.06.28
| Won | Pyongyang | Sinuiju | Hyesan |
|---|---|---|---|
| Exchange Rate | 8,070 | 8,050 | 8,095 |
| Rice Price | 5,800 | 6,000 | 5,900 |
South Korean personnel and North Korean workers returned to work at the Kaesong Industrial Complex (KIC) this morning, following months of closure and inter-Korean tension.
Business owners are set to spend the day checking machinery and facilities that have lain idle since the shutdown of the complex on April 3rd. Work is expected to continue over the Chuseok holiday, which runs from Wednesday to Friday this week.
Some businesses have said they expect it to take many months before production returns to normal. However, it is expected that firms working in textile and clothing industries will require less time to get back up and running than those in electronics and machinery sectors.
Nevertheless, further delays could occur where problems hit operations funding and reviving export deals. Concerns have also been raised over whether or not the original, trained North Korean workers will return to their former positions, or if time will have to be invested in training new employees.
A representative of Rok-Sec Garments Co., Park Yong Man told Daily NK, “There haven’t been any orders from international buyers due to the shutdown; so, the biggest problem for us is the inability to secure sufficient production volume. Additionally, if the North Koreans who worked for us before are not sent back, we have a big problem on our hands as we will need to bring in South Koreans to check their work.”
The representative of another company, who requested anonymity, noted, “We have received notice from the North that 10% of workers will not be returning as they have married, retired, or passed away.”
Experts have identified several other unresolved issues that will need to be appropriately dealt with before the successful resumption of operations can take place. These include internationalization and issues of passage, communication, and customs between North and South Korea. Internet and cell phone use is always a thorny issue when dealing with North Korea, so the extent to which North Korea will cooperate on this issue is also crucial.
“From the point of view of the North Koreans, if they allow Internet and cell phone usage then they won’t be able to help worrying about how, technically, to avoid it leaching outside the fence,” a researcher with the IBK Economic Research Institute, Cho Bong Hyun explained. “The South Korean government needs to solve the technical sides of this for them, and then persuade them to do it.”
“For the KIC to make a full recovery, it must be impressed upon foreign companies that their investment is secure,” Cho went on. “Rather than rushing too quickly into things, the South Korean government must move first to create security and provide systemic guarantees.”
Meanwhile the North-South joint committee on the KIC meets for the third time today to discuss outstanding issues pertaining to access, sojourn, and protocol in instances of crime.
Business owners are set to spend the day checking machinery and facilities that have lain idle since the shutdown of the complex on April 3rd. Work is expected to continue over the Chuseok holiday, which runs from Wednesday to Friday this week.
Some businesses have said they expect it to take many months before production returns to normal. However, it is expected that firms working in textile and clothing industries will require less time to get back up and running than those in electronics and machinery sectors.
Nevertheless, further delays could occur where problems hit operations funding and reviving export deals. Concerns have also been raised over whether or not the original, trained North Korean workers will return to their former positions, or if time will have to be invested in training new employees.
A representative of Rok-Sec Garments Co., Park Yong Man told Daily NK, “There haven’t been any orders from international buyers due to the shutdown; so, the biggest problem for us is the inability to secure sufficient production volume. Additionally, if the North Koreans who worked for us before are not sent back, we have a big problem on our hands as we will need to bring in South Koreans to check their work.”
The representative of another company, who requested anonymity, noted, “We have received notice from the North that 10% of workers will not be returning as they have married, retired, or passed away.”
Experts have identified several other unresolved issues that will need to be appropriately dealt with before the successful resumption of operations can take place. These include internationalization and issues of passage, communication, and customs between North and South Korea. Internet and cell phone use is always a thorny issue when dealing with North Korea, so the extent to which North Korea will cooperate on this issue is also crucial.
“From the point of view of the North Koreans, if they allow Internet and cell phone usage then they won’t be able to help worrying about how, technically, to avoid it leaching outside the fence,” a researcher with the IBK Economic Research Institute, Cho Bong Hyun explained. “The South Korean government needs to solve the technical sides of this for them, and then persuade them to do it.”
“For the KIC to make a full recovery, it must be impressed upon foreign companies that their investment is secure,” Cho went on. “Rather than rushing too quickly into things, the South Korean government must move first to create security and provide systemic guarantees.”
Meanwhile the North-South joint committee on the KIC meets for the third time today to discuss outstanding issues pertaining to access, sojourn, and protocol in instances of crime.
