Kaesong management office warns companies not to start production
2013/09/03 19:47
SEOUL, Sept. 3 (Yonhap) -- The South Korean office in charge overseeing operations at the inter-Korean factory park warned local companies not to start production due to infrastructure issues, the government said Tuesday.
The two Koreas agreed on Aug. 14 to reopen the Kaesong Industrial Complex that has been closed since early April. Under the agreement, North Korea effectively pledged to provide safeguards that will prevent it from unilaterally closing the complex again down the line.
Sources said the Kaesong Industrial District Management Committee (KIDMAC) sent a formal letter to 123 companies with factories in the North Korean border town last week forbidding production. It warned that failure to follow the guidelines could result in penalties for violators.
The Ministry of Unification that is in charge of all cross-border relations said that the letters were sent because the utility infrastructure at Kaesong in currently not up to the task of companies starting production.
If companies tried to produce goods now they would overtax the infrastructure systems, which could lead to blackouts and other problems, it said.
"Technicians need to upgrade the power lines, sewage treatment and water purification," said a ministry official who requested anonymity.
He added that while most of the work needed to repair basic utilities services has been carried out since mid August, other work is pending.
The committee also made clear that North Korean workers who have been hired to help South Korean companies can only be used to repair factories for production.
Related to the orders issued, some companies said they were bewildered that the committee took such a high-handed approach toward businesses who only wanted to minimize losses caused by the five-month-long halt in operations.
Seoul and Pyongyang held talks on Monday to discuss when the industrial complex will be fully opened but failed to reach an agreement. The North has called for the immediate resumption of the factory, while the South said institutional and legal safeguards must be in place.
"Talks represent the ongoing process towards normalization," the official said.
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