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| DPRK DEMANDS WAGE, RENTS HIKES FOR KAESONG |
| Posted Date : 2009-06-12 (NK Brief No. 09-6-12-1) |
North and South Korean working level talks were held on June 11 to discuss the North’s new demands for wages and land rents in the inter-Korean joint Kaesong Industrial Complex. After declaring all inter-Korean agreements on the joint complex “null and void” in May, the North has now asked for minimum wages to be quadrupled, and for a 300-fold increase in rent.
The North Korean delegation demanded wages, including social security fees, be raised from 75 USD to 300 USD, and for an annual wage hike of 10~20 percent, rather than the previously agreed-upon 5 percent. There are approximately 40,000 North Korean workers currently employed by 106 South Korean companies in the KIC. The North also demanded that the 16 million USD paid by Hyundai Asan and the (South) Korea Land Corporation for a 50-year lease be increased to 500 million USD.
As the future of the complex continues to be unclear, one South Korean company pulled out of the complex earlier this week. Skin Net, an apparel maker, cited concerns over the safety of its workers and the future of its operations. Kim Yong-ju, president of Skin Net, stated, “We decided to withdraw from Kaesong for the security of our staff. The North’s detention of a South Korean worker mainly affected our decision.” Several other companies noted concerns of excessive wage demands and geopolitical tensions.
During yesterday’s talks, the South Korean delegation tried to address the issue of South Korean worker Yoo Sung-jin, held for 74 days on suspicion of criticizing the North and trying to convince a North Korean worker to defect. North Korean officials only responded that “Yoo was fine,” but provided no further details.
The North pushed the South for a quick response to its demands, suggesting that a new round of talks be held on June 19.
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