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The 1st Meeting of the Subcommittee for Cooperation on Gaeseong Industrial Complex

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2007-12-24
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The 1st Meeting of the Subcommittee for Cooperation on

The 1st Meeting of the Subcommittee for Cooperation on Gaeseong Industrial Complex

1. Overview

The 1st meeting of the Subcommittee for Cooperation on Gaeseong Industrial Complex was held from Dec. 20 through 21, 2007 at Inter-Korean Economic CooperationConsultation Office in Gaeseong. During the talks, the two Koreas consulted on ways to promote Gaeseong Industrial Complex project and reached a seven-article agreement. They also discussed in detail on the passage, communication and customs clearance of the Gaeseong area as agreed upon at the 1st Prime Ministerial Talks on Nov. '07 and the 1st Meeting of the inter-Korean Economic Cooperation Committee. The two sides also adopted an annex on construction and operation of dormitories for North Korean workers employed for the Gaeseong Industrial Complex in order to guarantee timely supply of the workforce.

2. Major Agreements

O Allowing passage to the GIC anytime from 07:00 to 22:00

The two Koreas agreed to allow South Koreans to freely access to the Gaeseong Industrial Complex(GIC) anytime from 07:00 through 22:00 on weekdays starting mid-Jan., 2008. The guarantee of easy entrance and exit from and to the Gaeseong area is expected to significantly improve business environment for tenant companies. In case of Sundays, people need to report their entrance or exit 24 hours prior to their actual passage, while South and North Korea will discuss on the access on national holidays or commemorative days.

O Running Radio Frequency Identification(RFID) System in the first half of 2008

As notification on access plan and access control will be dealt with via online, passageprocess will be conducted promptly and conveniently. With the introduction of the RFID system, it will take about five seconds to clear workers through border control compared to 30 seconds at present, while vehicles could be checked in 10 seconds from the current one minute. For the smooth operation of the RFID system, the North will enact regulations on the provision of entrance, stay and residence at the Gaeseong Industrial Complex.


Before

After

Accessible time

08:30~17:40

(09:00~17:00 during the winter season)

* 08:30~14:30 on Saturdays

07:00~22:00 from Mon. through Sat.

Accessible day

Only weekdays

Accessible on Sun. if notified 48 hrs prior to passage

Prior notification on access plan

Notification through document

Notification via on-line using RFID card



O Shifting to selective inspection at an early date

As the North will shift the customs clearance method from the existing total inspection to selective one at an early date, customs clearance will be conducted promptly. The shift will be madestarting mid-Jan., 2008, as the North has showed willingness to change the customs clearance method.

O Constructing dormitories for North Korean workers

The South and the North agreed to construct dormitories for North Korean workers in order to ensure timely supply of the workforce necessary for the 1st stage development of the Gaeseong Industrial Complex. The construction of a dormitory accommodating as many as 15,000 people will be embarked on inthe first half of 2008, and more dormitories will be constructed in stages. With the construction of dormitories, it is expected that more young and skilled people will be able to work at the GIC, significantlycontributing to the productivity of the tenant companies. By 2010 when all 450 tenant companies run their factories at the GIC, approximately 100,000 North Korean workers are expected to be employed for the 1st stage development of the complex. So far, around 22,000 employees are working there.

O Operating a commuter train to the GIC in 2008

The two Koreas agreed to run a commuter train to the GIC using the Gyungui Line starting 2008. The commuter train will run from Munsan, Panmun station and Gaeseong, and both North and South Korean workers will use the commuter train.

//End of document//