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...