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September 30, 2025Pacific Focus2 citations

The Kaesong Industrial Complex in North Korea and Implications for the Two Koreas' Economic Cooperation

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SHSun-hye Heo

Key Points

  • Economic effects of the Kaesong Industrial Complex were significant, impacting both North and South Koreas.
  • Political changes in North Korea are essential for fruitful inter-Korean economic cooperation moving forward.
  • The complex served as a symbol of peace but often faced threats of closure by North Korea.
  • Regime preservation in North Korea outweighed the economic benefits of the Kaesong Industrial Complex.

Abstract

South Korea and North Korea (NK) created the Kaesong Industrial Complex (KIC; 2005–2016) as a symbol of peace. Yet, NK often took strong measures suggesting its closure. Had the economic benefits been negligible, NK's actions might have been related to dissatisfaction with the KIC's economic performance. However, per the examination based on the global production networks perspective, the KIC produced significant economic effects. Thus, NK's desire for regime preservation overwhelmed its economic interests. Thus, for South Korea's intentions to be achieved and for NK to benefit economically through inter‐Korean economic cooperation, political change in NK must come first.

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Cite This Study

Sun-hye Heo (2025) studied this question.

synapsesocial.com/papers/68dc12c58a7d58c25ebb0984https://doi.org/10.1111/pafo.70005
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