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China-Japan-Koreas
Seoul Works Out Contingency Plan for Kaesong Closure
2009-05-28
The government has worked out a contingency plan in case North Korea abruptly closes down the joint Kaesong Industrial Complex.
Get your people out and cut your losses, that's my advice for a contingency plan ...
Don't forget the keys and instruction manuals, and lock down anything the untrained might hurt themselves trying to operate without proper training. Perhaps disable key bits of apparatus just to be sure there are no injuries until you get back. Always safety first!
A senior South Korean government official said when North Korea banned South Korean traffic to the industrial park late last year, the government began working out measures in preparation for the possibility of the industrial park's closure. "Since last Friday when the North declared all incumbent regulations and contracts regarding the Kaesong Industrial Complex null and void, we've been mapping out concrete measures in preparation for various scenarios concerning the North's possible close-down of the industrial park."

The key point in the contingency plan is to ensure the safety of South Korean staff at Kaesong, he added.
Here's an idea to ensure their safety: don't send them north of the DMZ.
This also concerns compensation for losses suffered by the firms at the industrial park. A Cheong Wa Dae official said the insurance ceiling for each South Korean firm operating there could be raised from W5 billion to W7 billion (US$1=W1,263).

The National Assembly Research Service says direct investment by South Korean firms in Kaesong amounts to W730 billion, and the estimated production value they could achieve if they were to invest that money in South Korea instead would be about W630 billion. The NARS estimates the South Korean firms' total loss form closure at W1.36 trillion.

Another senior government official said, "With the inter-Korean cooperation fund worth W1.5 trillion per year, there should be no scenario that we can't handle by simple arithmetic. But we're concerned about strained inter-Korean relations and South Korea's international credit standing dropping as a result."

At the moment the government still hopes for another inter-Korean meeting. "Our proposal for another round of talks on Monday, which we made last Friday, still stands," a government official said. "There is no reason for us to reject any counterproposal by the North for a new meeting date."

But a Hyundai Asan staffer identified as Yoo (44) has now been held incommunicado by North Korea for 49 days, an effective hostage to the stalled negotiations. A Unification Ministry official said North Korea "must release him as soon as possible. It's not a matter for any kind of discussion or negotiation. On the other hand, the issues of land use fees, wages and tax could be solved through dialogue."
Posted by:Steve White

#1  don't send them north of the DMZ.

Especially don't send troops - they might win and then you'd be stuck with the responsibility of taking care of all those Norks.
Posted by: Glenmore   2009-05-28 13:14  

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