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The government plans to announce an enforcement decree next week to dissolve the Gaeseong Industrial District Foundation.
Since its establishment in 2007, following the launch of the Kaesong Industrial Region in 2004, the foundation has been supporting the entry permit process, access control, labor, and facility management of companies in the complex.
On the 11th, Koo Byung Sam, spokesperson for the Ministry of Unification, stated at a regular briefing, “The process of amending the enforcement decree for the dissolution of the foundation is underway, and it is expected to be announced and implemented next week after going through procedures such as the State Council meeting on the 12th.”
According to the Ministry of Unification, once the amended enforcement decree is announced and implemented following the State Council’s decision, the foundation plans to hold a board meeting to vote on the dissolution plan. It usually takes about a week, so it is expected that the foundation could be dissolved as early as the 20th.
After the foundation’s dissolution, its tasks will be delegated to the South-North Korea Exchanges and Cooperation Support Association. A significant number of the foundation’s 40 employees have chosen to retire voluntarily, and fewer than 10 people will work at the South-North Korea Exchanges and Cooperation Support Association or corporation in liquidation.
Since its establishment in 2007 to manage the complex, the Gaeseong Industrial District Foundation has played a hub role in inter-Korean economic cooperation, providing support for companies’ entry permits, access control, labor, and facility management. However, it has been suspended for eight years since the inter-Korean relationship deteriorated in February 2016. Under the Yoon Suk Yeol administration, the foundation was on the list of restructuring programs, while the series of provocations of North Korea worsened the inter-Korean relationship, which led to the continuous trend of downsizing the exchange and cooperation sectors of the Ministry of Unification.
An official from the Ministry of Unification said, “The government has decided to dissolve the foundation after comprehensively considering the operation status of the foundation.” This official explained the background of the dissolution, saying, “North Korea maintains a hostile stance towards South Korea, and the conditions for resumption are not sufficient. Also, there have been ongoing problems with the inefficiency of operating the foundation for the operation of the Gaesong Industrial Complex.”
The Gaesong Industrial Complex, which started operations in December 2004, recorded a production value of 3.23 billion dollars until it was suspended in February 2016. At that time, 125 of the South Korean companies were located there, and the number of North Korean workers reached around 55,000.
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