FACTBOX-South Korea's industrial park in the North
27 Mar 2008 03:10:24 GMT Source: Reuters
(For related story see KOREA-NORTH/KAESONG [ID:nSEO369655]) March 27 (Reuters) - North Korea in the predawn hours of Thursday expelled South Korean officials from a joint factory park just north of the heavily armed border that had been hailed as a model of economic cooperation. Here are some key facts about the Kaesong Industrial District: LOGISTICS The park is located in the North Korean city of Kaesong about 70 km (45 miles) northwest of Seoul. A new highway and a restored rail link run through the Demilitarised Zone border taking materials from the South and finished products from the North. Kaesong is the first cooperative manufacturing venture where South Korean firms use North Korean labour. It is run by Hyundai Asan, part of the Hyundai Group, along with Korea Land Corp. EMPLOYMENT As of early 2008, there were 23,000 North Koreans employed at nearly 70 South Korean factories producing items such as textiles, watches and cosmetic cases. The minimum monthly wage is $70 for each employee. The wages are paid to the North Korean state and not directly to workers. CHARGES OF EXPLOITATION In May 2006, Jay Lefkowitz, the top U.S. official for human rights in North Korea, raised concerns about possible worker exploitation at the complex. Lefkowitz said the well-intentioned project may simply end up providing funds that prop up the North Korean regime. South Korea said the comments were biased. DUTY-FREE EXPORT? South Korea and the United States agreed to set up a joint committee to study allowing Kaesong products duty-free status in the U.S. market under a free trade deal struck in April 2007. South Korea says future projects in the North will be entitled to the same privilege. Washington is less enthusiastic. FUTURE PLANS South Korea's vision for the Kaesong project, which began in June 2003 with the first batch of goods shipped to South Korea in 2004, includes more than half a million North Koreans employed by 2,000 firms and with hotels, golf courses and a "peace park". (Sources: Reuters, South Korean Unification Ministry, Hyundai Asan) (Reporting by Jack Kim, Jon Herskovitz and Lee Jiyeon; Editing by Sanjeev Miglani)
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