North Korea Considering Attracting Chinese Companies to Kaesong Industrial Complex... Government "Verifying Intelligence"

North Korea has been detected attempting to secure investments or orders from Chinese companies for the Kaesong Industrial Complex. There are observations that it may be trying to subcontract from third countries, beyond unauthorized use of facilities or vehicles belonging to South Korean companies within the Kaesong Industrial Complex.

An official from the Ministry of Unification told reporters on the 20th, "We have detected information regarding the participation of third-country companies in the Kaesong Industrial Complex and are verifying such intelligence with relevant agencies."

A bus presumed to be from Hyundai Motor Company was spotted in Kaesong, North Korea. In the past, the government and Hyundai provided buses for commuting to the Kaesong Industrial Complex, and at that time, the vehicles had Hyundai logos and the Korean Peninsula flag attached, but it is presumed that all have been removed.
[Image source=Yonhap News]

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Previously, the government completely suspended operations at the Kaesong Industrial Complex in 2016 in response to North Korea's 4th nuclear test and consecutive long-range rocket launches. Since then, North Korea has been continuously using the facilities of South Korean companies within the Kaesong Industrial Complex without authorization. Recently, 'thermal infrared satellite images' revealing that the factories are operational were also released.

The Ministry of Unification has attempted to send protest notices to North Korea regarding the unauthorized operation of the Kaesong Industrial Complex, but the North has unilaterally refused to receive them. On the 11th, Minister of Unification Kwon Young-se issued a statement in his capacity as minister for the first time in 10 years, strongly protesting that "this violates the agreement on investment guarantees between South and North Korea and North Korea's Kaesong Industrial Zone Law."

Meanwhile, as signs emerge that North Korea is in contact with China regarding the Kaesong Industrial Complex, there are also observations that it may be trying not only to operate factories without authorization but also to transfer some facilities to the Chinese side or subcontract production of goods desired by Chinese companies.

Thermal infrared satellite images indicating that North Korea is unauthorizedly using the Kaesong Industrial Complex facilities were released on the 18th. When temperature is detected by thermal infrared, areas with higher temperatures appear in "red," and areas with lower temperatures appear in "blue." Four red zones emitting heat were identified. Jeong Seong-hak, Deputy Director of the Land Satellite Information Research Institute at Kyungpook National University, explained that the four factories generating high heat include two electronics factories, one textile factory, and one manufacturing factory. [Image source=Yonhap News]

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An official from the Ministry of Unification explained regarding whether investment in the Kaesong Industrial Complex by other countries violates sanctions against North Korea, "This is a matter to be reviewed when specific situations arise, and it is not the stage to comment now." The official added, "The Kaesong Industrial Complex is an asset of our government and companies, and unauthorized use by anyone is illegal. The government will take all possible measures, including legal actions."

Meanwhile, the Ministry of Unification stated regarding the timing of North Korea's military reconnaissance satellite launch, "There is a possibility of launch soon, and we are closely monitoring the situation."

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