Recently, there have been reports that North Korea uses buses owned by South Korean companies in the Kaesong Industrial Complex(KIC) without permission. In addition, there were even reports that North Korean authorities operate South Korean companies' factories in KIC without permission to make me-too products of South Korean products and sell them to North Korea and China. South Korea and neighboring countries are angry at North Korea's attempts to make money for its dictatorship and nuclear development, and express concerns about accidents caused by defective products. For example, me-too electric pressure rice cookers produced by North Korea in the KIC do not have a pressure regulator, which is an essential part for rice cookers and a sanctioned item against North Korea. An electric pressure rice cooker without a pressure regulator can explode at any time, causing serious injuries to users. By the way, why are there factories of South Korean companies in Kaesong, North Korea's territory? These are traces of KIC, which was made 20 years ago.

KIC is located in Kaesong city of North Korea just across the demilitarised zone from South Korea. In creating KIC, both sides wanted to match South Korea's superior manufacturing technology and export capabilities with North Korea's abundant labor force. A synergistic effect was also expected, in which South Korean companies improved their price competitiveness, and North Koreans acquired manufacturing skills and were provided with stable jobs.

South Korea has continued to invest for the successful operation. In KIC, 125 South Korean small and medium-sized enterprises (SMEs) in various fields such as machinery, metal, electricity and electronics, chemistry, paper, wood, and food, with a focus on clothing, moved in and invested $780 million in production facilities. In addition, the South Korean government has built all infrastructure necessary for industrial complexes such as electricity, roads, telecommunications, water and sewage facilities, wastewater and waste treatment plants within KIC, and various facilities to support North Korean workers such as technical education centers, fire stations, and hospitals also installed. In addition, water supply and electricity were supplied to the entire city of Kaesong.

Dollars were used in the KIC, and wages for North Korean workers were also paid in dollars. The North Korean authorities received wages from South Korean companies, deducted 40% of the wages in various names, and paid the remaining money to North Korean workers. It was not a big money, but it was not a small amount for North Koreans who suffered terrible food shortages during the 'Arduous March'.

KIC was not only a stage for inter-Korean economic cooperation, but also a preview of a 'unified Korea' in which residents of the South and North worked together to build a living environment. Here, 1,000 South Koreans and 55,000 North Koreans worked together. Almost 300 buses made round trips from downtown of Kaesong to the industrial complex every day to help North Korean workers commute. As so many North and South Koreans lived together, a laughable happening occurred. In March 2009, North Korean authorities arrested Mr. Yoo, an employee of 'Hyundai Asan'(South Korean) and announced that he had condemned the North Korean regime and plotted the North Korean woman's escape. Actually Mr. Yoo fell in love with a North Korean worker and was caught sending a letter saying, 'Let's live together in a free society'. The tragedy of the division of the South and the North did not even allow a man and a woman to love, and Mr. Yoo was only released after five months through negotiations between the two sides.

The Beginning and Crisis of KIC

KIC project began with a visit of a South Korean entrepreneur to North Korea. In 1998, Chung Ju-young, a founder of 'Hyundai' drove 1,001 cows to his hometown, North Korea, which he left as a child. He agreed with North Korean leader Kim Jong-il to establish an industrial complex. North Korea suggested Sinuiju city, which borders China, as a candidate site, but 'Hyundai' requested Haeju and Gaeseong, which are close to South Korea. In August 2000, South Korea's 'Hyundai Asan' and North Korea's 'Asia-Pacific Peace Committee' signed an agreement for the construction of the 'Kaesong Industrial Zone', and in June 2003, the first phase of development began. In 2004, 26 South Korean companies moved into the complex for the first time and began producing products in December. As time passed, more companies moved into KIC, and as the number of North Korean workers increased, KIC developed into a symbol of cooperation between South Korean technology and North Korean labor force.

However, it was exposed that North Korea has continued to develop nuclear weapons while advocating peace with South Korea, and inter-Korean relations repeatedly went through tension and relaxation. KIC went back and forth between 'ON' and 'OFF' accordingly. In 2008, the South Korea demanded an official stance on the development of nuclear weapons from the North Korea, but North refused to accept it and expel South Korean personnel from KIC for a while and block all land routes, before reopening. In 2010, North Korea fired a torpedo to sink the Cheonan, a warship of the South Korean navy, and fired artillery at Yeonpyeong Island, located in the northernmost part of South Korea. As a result, dozens of casualties occurred, and the South Korean government banned new investment in KIC and drastically reduced the size of the number of South Koreans in KIC. However despite internal opposition, South Korea made great efforts to maintain KIC, which played a significant role as a window for inter-Korean dialogue.

North Korea denounced the South Korean media's criticism about KIC as a violation of 'the highest dignity' by the South Korean authorities, and stopped KIC operation April to August 2013. South Korea proposed consultation, but North Korea also blocked the import of daily necessities for South Korean workers. In the end, the South Korean government also withdrew all its personnel to protect the people. Since then, South Korea has proposed several talks to North Korea, but North Korea has refused. As time passed, the amount of damage to South Korean companies increased rapidly. And eventually, when the South Korean government promised to provide $14.4 million in aid to North Korea through UNICEF on two occasions, North Korea responded to working-level talks, and in September 2013, the KIC was restarted.

However, North Korea continued its armed provocations such as launching missiles, and finally, on January 6, 2016, despite the concerns of the world, carried out its fourth nuclear test. The international society has begun expanding sanctions to stop North Korea from developing nuclear weapons. However, North Korea provoked South Korea in early February by testing ballistic missiles and using warships to invade South Korean territorial waters. In addition, signs of additional nuclear tests of North Korea have also been detected. On February 10, 2016, the South Korean government announced the suspension of KIC as part of sanctions against North Korea.

The role of KIC for liberalization and normalization of North Korea

As the old saying goes, 'Justice will prevail', the North Koreans who suffer from abnormal dictatorship will one day win the freedom that most earthlings enjoy for granted. Even if Korea are reunified in the near future, North Koreans who have not experienced capitalism, and have been brainwashed by the North Korean authorities over 70 years, will experience huge political, economic, and social chaos. KIC, called the 'priming water for unification', was a test board where ordinary North Koreans could indirectly experience capitalism, where they earn a fair wage through voluntarily working.

I hope that the North Korean regime, including Kim Jong-un, will stop abnormal military provocations and nuclear threats and come to the fore of inter-Korean cooperation. If such a day comes, the fire of KIC will be brightly lit and it will play a major role as a symbol of harmony between North and South Korea and liberalization of North Korea.

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