Study On Inter Korean Economic Gorporation

In 2013, Kaesong Industrial Complex (ab. KIC) was faced with unprecedented crisis. The six-month shutdown was the first since the openin g of the KIC in 2004. KIC is the two Korea’s first collective endeavor in forging constructive economic cooperation. Upon this point in time, the two Koreas have gradually developed positive relationship since 1999. Until the shutdown in April 2014, the KIC has had ten years of cooperation, despite of Chon’an incident and Yeonpyuong island attack in 2010. By explaining the DPRK’s history and inner political properties, as well as the collapse of Soviet Union in 1989, this thesis will analyze DPRK leadership’s key political and economic choices since 1990.DPRK also has tried external cooperative projects akin t o "Reform and Opening up", such as "Rajin Seonbong Special Economic Zone" (1991), "Sinuiju Special Administrative Region" (2002) and the’KIC (2004). Prior two projects ended in failure. Compare with the success of o ther socialist state, such as P. R. China and Vietnam, DPRK’ s failure is not easily understood by the outside world. Moreover, ROK’ s public opinion has long been divided over political issue relating to the DPRK and the KIC is no exception.However, when it encountered shutdown, we can see that the majority of the public opinion wanted the KIC to remain open, regardless of their political leanings. Although there is no sign of settlement about the DPRK related problems, such as the nuclear crisis, dictatorship and humanitarian crisis since 2000, ROK has tried to separate the KIC from the realm of realpolitik. This perspective has put ROK at odds with the US government’s stance on issues of the DPRK. In the second half of this paper, I give an explanation about political sensibility of the KIC and the uncertainty of its meaning in terms of political-economy. Since, after all, two Koreas’ ultimate goal is to reunify with other side through their own political system, the study of the case of KIC using the political economic perspective is a fitting tool to postulate the potential mode for future reunification.