THE ROLE OF PRIVATE SECTOR IN KAESONG INDUSTRIAL COMPLEX : PROSPECTS FOR THE REUNIFICATION OF SOUTH AND NORTH KOREA

Abstract

The objective of this research is to analyze the factors for the private sector to invest in Kaesong Industrial Complex (KIC), to study the role of the South Korean private companies investing in the industrial complex, and to study the possibility of the reunification of the Korean peninsula through the cooperation between South and North Korea. This research uses several data sources including historical documents, statistical data in the form of books, academic articles, newspapers, Thai and English electronic sources concerning the economic cooperation between South and North Korea, Kaesong Industrial Complex, and the reunification of Korean, an interview with representatives of Korean companies in Thailand and Thai professors who are experts on Korean studies. According to the research, the economic cooperation in the establishment of Kaesong Industrial Complex came after a summit between President Kim Dae Jung of South Korea and the North Korean Supreme Leader Kim Jong il. Kaesong Industrial Complex is deemed as a model of the economic cooperation to reduce the economic gap between the two countries. During the operation of the industrial complex, even though there was production and exportation to South Korea, the economic gap was not reduced. This was against both leaders’ views on the Kaesong Industrial Complex as a model for further cooperation on other projects. The operation of Kaesong Industrial Complex was not stable because of the political atmosphere in the relationship between the two Koreas, as seen from the tense situation during the period of the President Lee Myung-Bak. Therefore, the role of the private sector in the reunification of Korea may also depend on the political factor.