Small Enterprises Discard Plan for Gaesong

Dongdaemun Special Tourist District Council gave up on its plan to move to Gaesong on October 10. With about 30,000 clothing manufacturers and sellers as members, the council was planning to move 400 or 500 businesses to an apartment-style factory in Gaesong.

The council’s business director Song Byeong-ryeol said on the phone, “After North Korea’s missile test in July, the applicants reduced to 50 percent. Now, all the enterprises interested in the plan gave up on it.”

He also added, “We don’t want to hold on to Gaesong when the risk is higher due to North Korea’s nuclear test. More members are turning to China.”

Small and medium-sized enterprises in pursuit of moving to the Gaesong Industrial Complex are giving up on their plan after North Korea’s nuclear test.

A considerable number of the enterprises interested in the plan to move to Gaesong decided not to apply for the lotting-out of Gaesong factory, while the remaining enterprises are negative about the plan.

Korean Clothing Retailers Co-op, an association of 150 small and medium-sized enterprises manufacturing and selling clothes, also discarded its plan to build an apartment-style factory in Gaesong.

The co-op’s general director, Lee Gyeong-seop, said, “Our members are no longer interested in Gaesong after watching North Korea change the relationship between South and North Korea with its reckless acts. There is no reason to continue to pursue the plan when there is a risk the Gaesong Industrial Complex can be closed suddenly.”

He also added, “Some members are still interested in Gaesong, but even they are highly likely to turn to somewhere else if the U.S. starts to impose sanctions.”

Korean Pottery, which was interested in the Gaesong Industrial Complex, completely folded its plan after North Korea’s nuclear test.

A source in the Korea Federation of Small and Medium Business said, “It is true there is high anxiety among the hopefuls. The prospects on the lotting-out of the Gaesong Industrial Complex seem dark for now.”

On the other hand, Gaesong Industrial Complex Enterprises Council, an association of the enterprises already residing in Gaesong, held a press conference at the Korea Federation of Small and Medium Business building in Yeouido, Seoul, and argued, “Gaesong Industrial Complex is private business, and it cannot be subject to political logic. Business activities at the complex should go on.”

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