Kaesong to be pilot industrial complex

A million-pyong lots of land in and around Hadae-ri, Panmun county in Kaesong City has been designated as the site of the first phase construction project for the Kaesong industrial estate in North Korea. Ground will be broken to start work in late April or early May next year. Korea Land Corporation (KLC) president Kim Yong-Chae said Monday that during his visit to North Korea between Nov. 14 and 19 he agreed with officials of the National Economic Cooperation Federation and the Asia-Pacific Peace Commission of North Korea on the initial timetable for the project.

The projected industrial estate site is located at an equal distance from Kaesong City and the northern limit of the Demilitarized Zone. The Kyongui rail line, to be reconnected, runs through the area which has soil quality fit for an industrial complex, Kim said. He added that soil analysis and land survey need to be completed by the end of the year to hasten the date of starting work, to be followed by the formulation of a rudimentary building plan and project schedule. An estimated total of 200 billion won to finance the complex will come entirely from the KLC coffers.

Over 20 surveyors and civil engineers are staying in Kaesong to carry out the preparatory field survey. Kim also disclosed he had requested North Koreans facilitate the overland transport of equipment, building materials and workforce through Panmunjom and the latter responded favorably. In case the overland shipment comes to pass, it will take South Korean construction equipment to the North via Panmunjomg for the first time since the country was divided at the end of World War II.

The KLC head made it clear that despite the current liquidity crunch of the Hyundai group the contract for building the Kaesong estate should be awarded to the conglomerate by way of guaranteeing Hyundai's vested interest in the project in view of its initiative in conceiving of and jumpstarting the complex.