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1. The Case for Kaesong: Fostering Korean Peace through Economic Ties

Author:
International Crisis Group
Publication Date:
06-2019
Content Type:
Special Report
Institution:
International Crisis Group
Abstract:
The Kaesong Industrial Complex, closed since 2016, was the most successful joint economic venture undertaken by North and South Korea. Reopening the manufacturing zone, with improvements to efficiency and worker protections, could help broker wider cooperation and sustain peace talks on the peninsula. What’s new? In 2016, South Korea shuttered the Kaesong Industrial Complex, breaking a modest but productive connection between the two Koreas. Crisis Group’s analysis sheds new light on the economic performance of firms operating at the Complex, demonstrating that the benefits for the South were greater than previously understood. Why does it matter? Beyond helping restart the stalled peace process, a deal to reopen the Complex in exchange for a proportionate step toward denuclearisation by North Korea could produce mutual economic benefits that help sustain South Korean support for talks and encourage Pyongyang’s commitment to peaceful relations. What should be done? As part of any deal to reopen the Complex, Seoul and Pyongyang should take steps to address problems that previously kept it from reaching its potential. The more efficiently, profitably and fairly it works, the better the Complex can help foster and maintain stable, peaceful relations between the Koreas.
Topic:
Economics, Bilateral Relations, Negotiation, and Peace
Political Geography:
Asia, South Korea, North Korea, and Korea

2. China and Inter-Korean Clashes in the Yellow Sea

Publication Date:
01-2011
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
The deadly provocations by North Korea in the Yellow Sea in 2010 – the Ch' ŏ nan sinking and the Yŏnp'yŏng Island shelling – drew condemnation and limited military responses by South Korea, the U.S. and Japan, but Beijing has been reluctant to go beyond counselling restraint to all parties. While declining to call Pyongyang to ac- count, it criticised Washington for stepped-up military exercises with allies in North East Asia. Beijing's unwillingness to condemn North Korea prevented a unified international response and undermines China's own security interests, as it invites further North Korean military and nuclear initiatives, risks increased militarisation of North East Asia and encourages an expanded U.S. military and political role in the region. Because it is seen as having failed to take greater responsibility to safeguard stability, China has also damaged its relationships in the region and in the West. The joint statement Presidents Hu and Obama issued on 19 January has helped, but China has ground to make up if it is to recover credibility as an impartial broker in the Six-Party Talks on North Korea's nuclear program.
Topic:
Conflict Resolution and Bilateral Relations
Political Geography:
United States, Japan, China, Washington, Israel, Beijing, Asia, and Korea