Wobble Watch: Kaesong

In a one-hour meeting with Unification Minister Lee Jae-joung, U.S. Ambassador Alexander Vershbow said that while it is unrealistic to recognize the goods made in the border city of Kaesong as South Korean, there is room left to negotiate within the proposed free trade agreement (FTA) between the two countries, Unification Ministry officials said.

“Lee stressed that U.S. recognition of the goods produced in Kaesong as South Korean will contribute to bringing about a lasting peace on the Korean Peninsula. Vershbow said ‘if,’ but he did not elaborate on what kind of change under what kind of circumstances,” said a ministry official who was present at the meeting, but who asked to remain anonymous.

It turns out to be  a big “if,” as it should be.  I understand Vershbow to be one who takes the whole “Trojan Horse” concept seriously in the specific context of Kaesong.  Count me as one more  who would take the idea seriously if Kaesong really did become an experiment in free labor markets.  If wages were paid directly to the workers, if workers were hired competitively from the local population, if they could change jobs or organize trade unions, if they could shop in the same on-site stores were South Koreans shop, and if they were permitted free and open contact with South Koreans, I might favor it, too. 

The present reality could not be more different.