Gaeseong Industrial Complex requires balanced point of view
A Second Look Required at the Gaeseong Industrial Complex
Gaeseong, a city once surrounded by the North Korean military and a symbol of inter-Korean tensions, is now turning into a peace zone where thousands of North and South Koreans are working side by side.
The Gaeseong Industrial Complex project, driven by the logic and economic necessity of cooperation, has been steadily moving forward, largely unaffected by sudden swings in inter-Korean relations or international affairs.
The North, given the unique advantages of Gaeseong, designated it as a special economic zone and has enacted over 50 laws and regulations, including the Law on the Gaeseong Industrial Complex and follow-on regulations which are necessary for the operation and management of the complex. At the same time, the North has been actively cooperating in the development of the industrial park: during inter-Korean talks the North has requested that the South accelerate the project.
The construction of the pilot factory site and infrastructure development set out in the first phase have been carried out as scheduled, with the infrastructure portion to be completed by the end of this year.
The high competition ratio of 4:1 to lease space in the first phase and Japanese entrepreneurs' investment in one of the tenant factories demonstrate that the investment environment in the complex is favorable.
Despite these positive developments, the human rights of North Korean employees working in the complex have emerged as a contentious issue, particularly North Korean workers' wages, method of payment and the working environment.
Ranging from US $57.50 to $75.00 per month, North Korean workers' wages are similar to that of China (in some areas) and Vietnam. Moreover, North Korean workers are paid a 50 to 100 percent bonus for any overtime work.
Labor regulations contained in the Law on the Gaeseong Industrial Complex stipulate paying wages directly to the North Korean workers. In response to the South Korean government's continuous demand for direct payment of wages, the North has taken a temporary measure to let workers check their paycheck slips and sign them.
Once the North's internal economic situation is more favorable, including the establishment of currency exchange shops, the South Korean government will actively carry out a direct payment plan for the North Korean workers in Gaeseong.
In addition, the working environment and living conditions for the North Korean workers are relatively good in comparison with those of industrial complexes in China and Southeast Asia.
First, in terms of the working environment, all of the factories within the complex have been newly built, such that they have facilities on par with those of South Korea's newer industrial parks.
Secondly, the workers' welfare is a priority for enterprises. Commuter buses are provided, and shower rooms as well as nursing rooms have been installed. The workers are also provided with nutritious lunches. They also take a regular exercise break during working hours.
South Korean companies have paid a great deal of attention to the welfare and well-being of the North Korean workers in the complex and they have expressed complete satisfaction with the working conditions.
These favorable working conditions are the reason why North Korean workers prefer working in the complex and willingly accept working overtime and on weekends.
Despite over 60 years of division, the two Koreas have built a model for cooperation through the Gaeseong Industrial Complex. When an issue arises, both Koreas exercise patience to resolve the issue through mutual understanding and dialogue on the basis of ethnic and linguistic homogeneity and a common cultural background.
Given the effect of military tension-reduction brought about by the Gaeseong complex, the project reaps not only economic gains but also intangible political and military benefits.
In this respect, the Gaeseong project is helping to realize our vision of establishing peace and mutual prosperity on the Korean Peninsula, and will serve as a pivotal stronghold for the two Koreas to be united and become a single community in the future.
