I thought the idea was to teach capitalism to North Korea, not to teach South Korea’s government how to expropriate and confiscate.
The government has asked the Federation of the Korean Industries (FKI) to help urge large companies to set up in the Gaesong Industrial Complex.
Most large companies do not want to do so, and they view the request of the government as “pressure.
The leader of the Gaesong Industrial Complex Support Team of the Ministry of Unification and an executive of Korea Land Corporation (KLC) early last month visited the FKI and asked it to encourage large companies to move into the complex.
Kaesong can’t be doing well at attracting foreign investment if the government is reduced to this. The problem is that no big South Korean corporations are interested.
However, large companies feel uneasy about the idea of entering the complex.
An executive of a large company said, “Due to international convention, major strategic materials are not allowed in the North. Therefore it is difficult to make investments in facilities within the complex. However, it is also difficult to turn our back on the government’s request.
Despite the problem, some large companies are expected to ultimately choose to go to Gaesong because of pressure from the government.
It also tells you much about relations between the U.S. and Korea, a nation whose defense the U.S. subsidizes, that South Korea is so insistent on going forward with essentially handing over its own subsidy to North Korea without making any demands about North Korea’s counterfeiting, technology transfers, or proliferation, not to mention labor conditions there.