Kaesong Industrial Complex Businessmen "The Complex Must Resume Immediately... Aftereffects of Closure Exceed Limit"

Kaesong Industrial Complex Enterprise Association Holds Press Conference at Inter-Korean Entry Office... 3rd Anniversary of '4.27 Panmunjom Declaration'
"Severe Damage Situation... Support Lasted Only One Year, Compensation Not Even Considered"

The Kaesong Industrial Complex Enterprises Association announced on the 27th that it held a press conference at the inter-Korean entry office gate in Paju, Gyeonggi Province, to mark the 3rd anniversary of the April 27 Panmunjom Declaration.
[Photo by Lee Jun-hyung]

[Asia Economy Reporter Lee Junhyung] “While the government is wavering, conscious of the United States, the Kaesong Industrial Complex businesspeople are suffocating.”

On the 27th, Lee Jaecheol, chairman of the Kaesong Industrial Complex Business Association, held a press conference at the Inter-Korean Entry Office gate in Paju, Gyeonggi Province, marking the 3rd anniversary of the April 27 Panmunjom Declaration, stating this. Seventeen Kaesong Industrial Complex businesspeople, including Chairman Lee and Senior Vice Chairman Lee Heegun, attended the press conference.

Chairman Lee said, “We suffered enormous damage due to the government’s illegal closure of the complex five years ago, but government support for damages was limited,” adding, “Since then, unable to cope with the aftereffects of the closure, our daily survival has become precarious.” He also said, “We have endured, eagerly awaiting the day the Kaesong Industrial Complex would be normalized, trusting the promises of the inter-Korean leaders,” and added, “However, the damage to businesses has continued to worsen, and the disaster situation has long exceeded its limits.”

He also reiterated the necessity of reopening the Kaesong Industrial Complex. Chairman Lee said, “The illegal closure was done by the government, but the pain is borne by the Kaesong Industrial Complex businesspeople,” and “The absurd situation where businesses are being driven to the brink must be corrected immediately.” He stated, “(The businesses) can no longer wait and have nowhere to retreat,” and “The governments of both Koreas must unconditionally reopen the Kaesong Industrial Complex and immediately allow Kaesong businesspeople to visit the complex.”

Kaesong Industrial Complex businesspeople are urging the reopening of the Kaesong Industrial Complex at the Inter-Korean Joint Liaison Office in Paju, Gyeonggi Province.
[Photo by Lee Jun-hyung]

A representative of a company residing in the Kaesong Industrial Complex who participated in the press conference lamented the severe damage. He said, “The suspension of the Kaesong Industrial Complex has lasted five years, but support was only for one year, and compensation was unthinkable,” adding, “Among the 125 resident companies, 25 have closed or are in a state of suspension equivalent to closure.” He continued, “30 to 40 companies have experienced a sharp decline in sales,” and “All companies are facing financial difficulties due to lowered credit ratings.”

There was also criticism that the government’s response has been passive. Senior Vice Chairman Lee said, “In the situation where inter-Korean dialogue is cut off, the government has not presented effective measures,” and “We are preparing measures to quickly reopen the Kaesong Industrial Complex by negotiating with the North through third countries.”

Meanwhile, according to the ‘Survey of Resident Companies on the 5th Anniversary of the Suspension of Kaesong Industrial Complex Operations’ released by the Korea Federation of SMEs in February, more than 7 out of 10 resident companies (76.6%) saw their sales decrease last year compared to 2015. The damage was greater for smaller companies. Small enterprises with sales under 5 billion KRW saw their sales drop by 76.1%, from an average of 6.53 billion KRW to 1.56 billion KRW.

This content was produced with the assistance of AI translation services.