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개성공단

KOR

Value of GIC

3 Damage and adverse effects of suspension of GIC

(Humanitarianism) More than 54,000 North Korean workers lost their livelihoods.

About 54,000 North Korean workers lost their jobs directly linked to the livelihoods in the moment of a political decision.
※ It is estimated that the average income of N.K. workers at the GIC was more than that of the middle class in North Korean society.
About 1,000 South Korean resident employees at the GIC lost their jobs.

(National Security) An Experimental space for economic cooperation between North and South Korea, and a safety valve was gone.

With the suspension of the GIC, which made "changes through contacts," the space of the spread of the capitalism* was lost.
※ Such articles as Taxes, accounting, productivity, incentives, etc. which the socialist economic system did not have.
The suspension of the GIC, which served as a security that moved North Korean troops of 60,000 soldiers backward, is much likely to return to the “military control zone.”
※ Even when the explosion of landmines in the demilitarized zone led to the loudspeaker broadcasts between North and Sough Korea, the loudspeakers were not installed around the GIC from both sides.

(Economy) Damage to South Korean SMEs due to suspension of GIC

Since the suspension of the GIC in Feb. 2016, 80~90% of the South Korean investors in the GIC is suffering difficulties.
- Difficulty of production because of the production facilities left behind at GIC
- In particular, small businesses have more severe difficulty for recovering, and many of them are closed or dormant. (see attachment 1)
Extent of Losses by South Korean SMEs
ㅇ SMEs : 94% of tenant businesses at GIC (118 out of 125)
60.5% of tenant businesses (72 businesses) relied on the GIC for over 70% of their production
※ Prolongation of GIC's suspension has put tenant businesses in danger of bankruptcy