US may discuss Gaeseong Industrial Complex reopening

Pyongyang may seek to offer resuming operation of the inter-Korean Gaeseong Industrial Complex as a possible corresponding measure in return for denuclearization measures. However, this needs U.S. approval due to multiple sanctions which may bar the operation of the complex.

South Korean and U.S. officials are likely to discuss the matter this week.

In his New Year address, North Korean leader Kim Jong-un expressed wishes to resume operation of the Gaeseong Industrial Complex and Mount Geumgang tours.

President Moon Jae-in in a press conference last week welcomed Kim’s remarks and stated the government would discuss the matter with the U.S. and the U.N. to resolve the issue of sanctions.

A number of U.N. Security Council sanctions on the North prohibit the operation of the industrial region, a joint venture of the South’s capital and skills, and the North’s land and labor.

Resolution 2375 says “states shall prohibit, by their nationals or in their territories, the opening, maintenance and operation of all joint ventures or cooperative entities, new and existing, with DPRK entities or individuals.”

There is also a resolution that bans the sales of textiles. The complex housed textile, leather, chemical and electronics businesses. Textile and sewing businesses are known to take up around 60 percent of firms there.

The issue is expected to be addressed at a working group meeting set to take place later this week.

The working group led by U.S. Special Representative for North Korea Stephen Biegun and his South Korean counterpart Lee Do-hoon launched last November for closer consultations on inter-Korean economic projects and the North’s denuclearization.

Last month, a working group meeting cleared sanctions issues for holding an initiation ceremony for inter-Korean railway and road projects.

Washington and Seoul have been seeking to hold a monthly face-to-face meeting, with video conferences in between to follow up on the agenda. A video conference is set to be held this week.

The Gaeseong complex was shut down in February 2016, over Pyongyang’s missile and nuclear provocations.

South Korean businesses stationed there have been suffering losses due to the shutdown.

Since the complex was shuttered, those running businesses there have requested visits to the site to check the condition of their production facilities.

Last week, they filed their seventh request for a visit to the complex to be held this Wednesday.

The unification ministry said Monday it is reviewing the request. The ministry’s stance has been that the government acknowledges the need for their visit, based on its duty to protect South Koreans’ property rights.

However, since the issue needs consultation with Washington, their visit will likely be delayed.

Meanwhile, Pyongyang continues to call for inter-Korean economic cooperation.

The North’s propaganda Uriminzokkiri stated the Koreas should actively seek to expand and develop cooperation and exchanges between the South and North, referring to projects that were initiated in the railway and road sectors.

With economic development as the Kim regime’s top priority, the North is actively pushing for economic projects, but U.N. sanctions placed on the North currently disable progress. Forecasts are that the U.S. may approve partially easing sanctions for projects such as the Gaeseong complex and Mount Geumgang tours, to elicit denuclearization steps from the North and make a breakthrough in the denuclearization process.