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OUTCOME OF THE JUNE 19 INTER-KOREAN WORKING-LEVEL TALKS
Posted Date : 2009-06-23    (NK Brief No. 09-6-23-1)


During working-level talks between the two Koreas over the Kaesong Industrial Complex on June 19, North Korea revealed that it was ready to ease entrance and exit restrictions that had been in place since December 1, 2008. While North Korean officials expressed a willingness to ease current restrictions, they did not make clear what regulations would be enforced in their place.

Last year, North Korea announced the December 1 Measures, further stalling inter-Korean relations. While easing access measures which limit the time for, and amount of, vehicle traffic in and out of the complex, residence in the complex is still limited to 880 personnel. In addition, there was no progress on narrowing the gap between the positions on the North¡¯s demand for greater wages and land rents or on the release of a South Korean worker being held by North Korean authorities.

During the South Korean delegation¡¯s 40-minute position speech, Seoul¡¯s spokesperson stated that the North¡¯s demands for wage and rent hikes were unjust, excessive, and unacceptable. He also demanded the release of Yoo Sung-jin, a Hyundai-Asan employee who has been held in the North for over 80 days now. The South also proposed a tripartite plan for stable development of the KIC:

1) Strict enforcement of agreed-upon inter-Korean regulations
2) Development of the complex without political or military influence
3) A long-term development vision for an internationally competitive industrial complex

In particular, in order to create an internationally cooperative industrial complex, the South pushed for the two Koreas to jointly observe business operations in other countries. The proposal called for a plan to be put into action in July, with observation of Chinese businesses as the first stage, followed by trips to Central Asia, and finally, inspection of businesses in the United States and South America.

The North Korean delegation strongly criticized the recent U.S.-ROK summit meeting, on June 16, and called the U.S. reiteration of South Korean protection under an American nuclear umbrella and peaceful unification under a free democratic system ¡°direct violations of the spirit of the June 15 Joint Declaration.¡± The North also persisted with its demands for 300 USD monthly wage hikes and 500 million USD in land rent, asking that next month¡¯s talks begin with these issues.

Differences in the positions of the two Koreas could not be narrowed during these talks, but the North¡¯s willingness to ease travel restrictions and to participate in further talks indicates its desire to keep the complex open.

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