Search Results for: kaesong

October 3, 2021

Selling Slavery: South Korean investors’ $900,000 Kaesong lobbying campaign

Documents filed with the Justice Department in July show that a group of South Korean investors hired a San Francisco law firm and a South Korean consulting firm to lobby the U.S. government to support reopening a shuttered, looted, and partially exploded manufacturing complex near Kaesong, North Korea. The documents were required to be filed with the Justice Department and made public under the Foreign Agents Registration Act of 1938 (FARA), a law designed to expose foreign propaganda and influence...

Categories Kaesong/U.S. & Korea/U.S. Law
January 11, 2019

How to make Kaesong a safety valve for sanctions and a(nother) test of engagement

Fifteen years after the opening of Kaesong and more than twelve years after the approval of UNSCR 1718, Seoul has finally gotten around to reading the resolution that Kaesong violated for a decade. As I’ve harped on during that entire period, paragraph 8(d) required Seoul to “ensure” that its bulk dollar transfers to Pyongyang, which it deceptively called “wages,” were not diverted for nukes, missiles, or luxury goods. No matter how obnoxiously I would present that question to the South...

Categories Kaesong
July 26, 2018

Kaesong is a buffalo jump for amoral politicians & unlawyered cretins

Mark Lambert, who is a “U.S. State Department official in charge of Korean affairs,” and who is also a mensch, is in South Korea this week, where he will meet with Korean officials, and also with “a group of South Korean businesspeople involved in inter-Korean economic projects.” Over the course of 15 years, this blog has followed the various get-broke-quick buffalo jumps that promoters, most of them amoral politicians who specialize in throwing away other people’s money, euphemistically call “inter-Korean...

Categories Kaesong/Sunshine
September 11, 2017

Moon Jae-in, Putin & Kaesong 2.0: Why the state of the U.S.-Korea alliance is not strong

Of the many reasons why the U.S. and South Korea failed to prevent North Korea from acquiring nuclear weapons, one of the most important is that, despite their nominal alliance, Washington and Seoul have been fundamentally misaligned on North Korea policy since Bill Clinton and Kim Young-Sam led their respective nations. The most important of these differences was their mutually canceling economic policies toward Pyongyang. As the U.S. moved (however slowly and haltingly) toward isolating Pyongyang economically to slow and...

Categories An Alliance?/Anti-Americanism/U.S. & Korea
February 10, 2017

Eight reasons why reopening Kaesong could be a deal-breaker for the U.S.-Korea alliance

More and more, I am hearing that Moon Jae-in, the left-wing front-runner in the South Korean presidential election, is talking about reopening and expanding the Kaesong Industrial Complex. It’s apparent that Mr. Moon and his supporters haven’t thought through the potential legal and diplomatic consequences of that. Perhaps this post will help concentrate some minds by telling Koreans, in frank terms, what most people in Washington really think about that idea. 1. Kaesong violates U.N. sanctions. I heard somewhere that...

Categories An Alliance?/Kaesong/Sunshine
February 16, 2016

In The Weekly Standard: Kaesong, where life imitated Monty Python & the Holy Grail

In Monty Python and the Holy Grail, the Knights of Camelot are on a quest for the Holy Grail, but find their way barred by a group of ornery French knights – never mind what they are doing in England – who have walled themselves inside an impregnable castle. After a pathetic attempt to breach the walls fails, Sir Bedivere the Wise devises a scheme to do through guile what could not be done through force. He persuades King Arthur...

Categories Appeasement/Engagement/Kaesong/Sunshine
February 10, 2016

The End of Sunshine: S. Korea suspends ops at Kaesong, “suspected” of funding N. Korea’s WMD programs

Year after year, and almost alone, I have argued that the Kaesong Industrial Park was incompatible with U.N. Security Council resolutions sanctioning Pyongyang. At Kaesong, “South Korea has 124 companies … employing 54,700 North Korean workers … whose wages are paid to a North Korean state agency.” All told, those fees, taxes, and “wages,” which the North Korean workers probably never saw after Kim Jong-un took his cut, totaled $110 million last year alone. Contrary to Kaesong’s founding purpose of promoting North-South engagement and people-to-people...

Categories Engagement/Kaesong/North-South/Sunshine
January 17, 2016

If S. Korea won’t close Kaesong, let it pay N. Korea in food.

The bad news from North Korea’s nuclear test is that its yield exceeded those of its 2006, 2009, and 2013 tests. The good news is that while the blast wasn’t thermonuclear, it was still hot enough to burn away plenty of policy fog. In Congress, sanctions legislation has sailed through the House, and seems to have good prospects in the Senate. Opinions are shifting among Korea scholars here, too. This morning, I had a chance to finish reading last week’s testimony before the...

Categories Kaesong/Sunshine
May 12, 2015

Kaesong promised us peace and reform. It delivered conflict, tension, and exploitation.

In April 2013, Kim Jong Un pulled 50,000 North Korean workers out of Kaesong, in retaliation for South Korea’s support for U.N. Security Council Resolution 2094. The shutdown lasted for five months and cost investors (and ultimately, the South Korean government that still subsidizes them) millions of dollars. Kaesong eventually recovered to pre-shutdown levels of operation, but the shutdown probably scared away potential foreign investors for years. A few months after the shutdown ended, a new dispute arose when North Korea told Kaesong investors to pay back...

Categories Kaesong/North-South/Sunshine
December 12, 2014

This is why no rational person would invest in Kaesong

North Korea has unilaterally raised those “wages” that South Korean companies pay the North Korean regime for labor at Kaesong—wages that the workers probably never see, and that for all the Unification Ministry knows, are used to buy iron maidens, centrifuge bearings, and 300-millimeter rocket fuses. The Unification Ministry isn’t happy, but only because wage hikes are bad for business: “Our firm position is that it’s impossible to revise the wage system without consultations between the South and North,” the...

Categories Kaesong
November 4, 2014

Another Kaesong firm folds

An unidentified small manufacturer for watch and mobile phones cases on Wednesday submitted an application for dissolution to the committee handling affairs at the joint park, according to officials from Seoul’s unification ministry. It marked the second case since June 2009 that South Korean firms operating at the Kaesong Complex have closed their businesses. It also marked the first time since the operation of the park had been halted briefly last year. The company, which had employed about 100 North...

Categories Kaesong
October 6, 2014

Prediction: the Kaesong worker safety inquiry will be a whitewash.

You may recall that several weeks ago, some North Korean workers at Kaesong fell ill with symptoms of benzene poisoning. The bad news is that we still haven’t heard a peep of protests on the workers’ behalf from the Korean Confederation of Trade Unions, for some reason. The good news is that the Korean government cares enough about appearances to have ordered a safety inquiry: The South Korean government began a two-month probe Thursday into the working conditions at 33 factories in the...

Categories Kaesong
October 3, 2014

Australia-Korea FTA causes Kaesong backlash

I couldn’t have said it any better than this, and Jay Lefkowitz may be the last person who did: “We can’t see how the Australian government in good conscience could bring such goods into the country,” he said. “It’s absolutely appalling, it basically would make the Australian government and Australian consumers complicit in the exploitation of North Korean workers by their government, and would ensure that Australian dollars are going directly into the pockets of the North Korean regime. Let’s...

Categories Kaesong
August 27, 2014

North Korean workers at Kaesong show symptoms of exposure to toxic chemicals …

including benzene. If you wonder why people such as myself rail against slave labor and the lack of labor rights at Kaesong, this is why. A real independent union would have stood up for the workers and raised this issue long ago. I can’t say I have much confidence in the desire of either of the governments involved — much less the employers — to tell the truth about the exposure of help the victims; after all, that wouldn’t serve the financial or...

Categories Kaesong/Sunshine
April 5, 2014

If Kaesong “wages” aren’t used to pay workers, what are they used for? (The Unification Ministry won’t comment.)

In yesterday’s post about Kaesong, I argued that by any reasonable definition, its North Korean workers are forced laborers, and that the best evidence we have suggests that the vast majority of their “wages” are probably stolen by the Pyongyang regime, through a combination of direct taxation and confiscatory exchange rates. My argument relied heavily on a recent study by the economist Marcus Noland, who has done an excellent job researching questions that most journalists have overlooked, addressing the ethical...

Categories "United" Nations/Appeasement/North-South/Sunshine
April 4, 2014

At Kaesong, “engagement” teaches S. Korean corporations the dying art of slavery

slavery n 1. (Law) the state or condition of being a slave; a civil relationship whereby one person has absolute power over another and controls his life, liberty, and fortune; 2. the subjection of a person to another person, esp in being forced into work; 3. the condition of being subject to some influence or habit; 4. (Industrial Relations & HR Terms) work done in harsh conditions for low pay A good test of whether any particular “engagement” program with North Korea has lived up...

Categories Anju Links
November 7, 2013

Kaesong running at half-capacity as investors trickle away

When Kaesong reopened after a five-month shutdown, I speculated that the shutdown would have lingering adverse effects on some of the operations there — that some of the manufacturers would have lost suppliers and customers, experienced workers would not return, credit would be overextended, and machinery and materials would have degraded. Sure enough, Kaesong still hasn’t recovered from the shutdown. Contrary to South Korean government claims that it’s running at 80% capacity, the true figure is just 50%. That may be as good...

Categories North-South/Sunshine
October 18, 2013

Kaesong was not shut down properly. Would you like to restart Kaesong in safe mode?*

Like most people, I don’t know what the genius behind this shutdown strategy realistically expected to accomplish with it. Its sudden, and apparently pressured, abandonment suggests that its mastermind didn’t think through its potential economic or political consequences, and that the decision was largely motivated by emotion and impulse, most likely egged on by a few yes-men in an echo chamber. He will (and should) pay significant economic and political costs for it. Potential investors, foreign governments, domestic government officials,...

Categories Sunshine