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001_4545df5sdg7y8tu8y7uiyt7.jpgPyongyang announces new border limits will start soon

Impact on Kaesong complex and tourism still unknown
November 13, 2008


North Korea said yesterday it would slap tougher restrictions on traffic through its border with South Korea beginning Dec. 1, marking another downward turn in inter-Korean relations.

The move came after Pyongyang repeatedly warned it would shut down Kaesong Industrial Complex in North Korea unless Seoul stopped activist civic groups from sending anti-North Korea leaflets by floating balloons to the North.
If the North carries out its threat, it could be a serious blow not only to Kaesong, where North Korean laborers work in factories owned by South Korean companies, but to the North’s tourism program as well.

According to Pyongyang’s Korea Central News Agency, Kim Yong-chul, the North Korean lieutenant general in charge of senior-level military talks with the South, sent a telephone message to military officials in Seoul saying the North would put “rigid limits and blockages” on all land traffic through the inter-Korean military border.
“The South Korean regime’s anti-North confrontational posture, including that of its military, has reached a dangerous level despite our repeated warnings,” the state news agency reported. “We are now officially announcing that actual and significant military measures will be implemented.”
Yesterday’s announcement came after Kim made a surprise visit at Kaesong Industrial Complex on Nov. 6 and asked how long it would take for South Korean companies to withdraw from the joint industrial complex.
Pyongyang’s central issue appears to be the leaflets urging the North Korean public to rise up against the country’s ruling regime. The leaflets also contain allegations about North Korean leader Kim Jong-il’s complicated history with women, and accuse Kim’s family of squandering state wealth on luxuries while North Koreans starve.

The country’s military has recently shown an unusually angry response to the anti-regime leaflets, which many experts here point to as a sign that the North’s regime is trying to calm public concerns caused by speculation about Kim’s health.
The South Korean government and the companies operating in the Kaesong complex have implored the civic groups to stop sending the leaflets, but they have refused to do so.
South Korea’s Unification Ministry confirmed the content of the telephone message and expressed “deep regret” over the latest news from Pyongyang.
“We will make sure that an extreme case, like the shutdown of Kaesong Industrial Complex, will not happen. This is the word from the Unification Minister and the basic stance of our government,” Unification Ministry spokesman Kim Ho-nyoun said yesterday. Kim also tried to reassure companies operating plants at the complex, saying the message from Pyongyang does not mean full blockage and that the government still has time to negotiate before Dec. 1.

But it is uncertain whether a worst-case scenario can be avoided as Pyongyang said its plan for Dec. 1 is only a “first-step measure.”
The Blue House also expressed “regret” over the latest development, but said it has no immediate plans to send a special envoy to ease tension with the North.
“There is little we can do since this is a decision unilaterally made by the North,” said a senior Blue House official who asked for customary anonymity. “We did our best to prevent the leaflets from flying into the North ... We need to solve this problem through dialogue.”

Meanwhile, South Korean companies operating in Kaesong expressed fear about the possible next step hinted at by Pyongyang.
“South Korean companies operating in the Kaesong Industrial Complex are embarrassed and deeply concerned,” said Kim Ik-kyum, a spokesman for Kaesong Industrial Council, the association of those companies.

Though the companies continued normal operations yesterday, they are concerned about an eventual shutdown of the complex, he said. In that case, 1,400 workers there from South Korea might lose their jobs.
“The propaganda leaflets sent to the North by South Korean civic groups triggered this situation. But even before that, Pyongyang had been delivering signals to press South Korea, but Seoul has taken little action due to the shutdown in communication following the Mount Kumgang shooting case,” Kim said. “Our association representatives will meet the Unification Minister on Thursday (today) to request proper measures.”
Pyongyang’s move is a blow to Hyundai Asan, the South Korean company managing inter-Korean projects which is already suffering from the suspension of the Mount Kumgang tourism business since a South Korean tourist was shot dead by a North Korean soldier in the mountain resort in July.

“We have not received notice from North Korean authorities that Kaesong tourism will be suspended,” said Kim Ha-young, spokesman for Hyundai Asan. “Whenever there was a serious change, they gave advance notice. So, we don’t think right now that the restriction on border crossings means suspension of Kaesong tourism.”
Hyundai Asan started the Kaesong tour program in December 2007. The accumulated number of tourists will reach 100,000 on Monday, the company said. Yesterday, 196 South Korean tourists went to Kaesong as scheduled.
If Kaesong tourism is suspended, Hyundai Asan will face additional financial difficulties. It has already asked some employees to work from home for 70 percent of their wages until the end of this year in an effort to trim costs.

By Jung Ha-won, Moon So-young Staff Reporters [hawon@joongang.co.kr]

Question
1. A presider is going to give you some questions related to this article.
   You can find the answer in the article.
2. Relating to the article, What makes North- Korea take a firm attitude to South- Korea ?
3. What is the North-Korea's measure effect to economy of South-Korea?
    Let's think about it relating to Kaesong complex and tourism.
4. The government of South Korea keeps prudent attitude to North's strong measure.
    It is so different from the last Noh's administration .
    In your thinking, Which policy is suitable in this situation?

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