The South Korean government has given permission for a limited amount of construction to restart within the Kaesong Industrial Complex that was halted as part of the May 24th Measures pursuant to the Cheonan sinking of March 26th, 2010.
A Ministry of Unification official revealed the decision today, explaining, “We will first allow the construction of seven factories that was underway but had to be stopped to restart. In addition, we plan to review the issue of allowing the restarting of additional construction at five existing factories.”
“We will push forward as rapidly as possible with the construction of a fire station and emergency medical facilities, to protect the assets of our enterprises in the Complex and the lives of workers,” the official further noted, adding that the emergency medical facilities are scheduled for completion by the end of 2012, while the land for the fire station has been purchased and designs completed.
The official also commented on plans to expand the viable pool of workers available to the Kaesong Complex by extending bus routes, saying, “Following consultation with the North, there is a plan to extend the reach of buses to and from the Complex for the transportation of North Korean workers from longer distances. Until now, buses have only operated within 20km, inside Kaesong and surrounding areas; however, we will transport more workers than that by expanding the radius to 40km.”
On a similar note, he went on to outline plans for road repairs, saying, “The plan is to start construction on the (4.5km) road between Kaesong City and the Kaesong Industrial Complex as and when working level consultations are complete in order to aim to finish it this year. From the point of view that it is a basic piece of infrastructure for the area surrounding the Complex and because its use is for our enterprises, we decided to push forward with the repair work, and expect to do it personally.”
Today’s decisions are likely to attract attention as they appear to represent the practical reflection of ‘policy flexibility’ as repeatedly advertized at the time of former Minister of Unification Hyun In Taek’s replacement with Yu Woo Ik at the start of last month.
However, the official was quick to note that today’s move does not represent the easing of the May 24th Measures, which forbade any new investment in the Complex; instead, it represents a willingness to allow planned and existing construction to be completed.
“It is a measure premised on the notion of exercising flexibility within principles and minimizing accumulated harm to individual enterprises,” the official explained.
