A survey found that 80% of the corporations that had moved into the Kaesong Industrial Complex are willing to move back in if the complex restarts.
The Korea Federation of Small and Medium Enterprises announced on the 14th the results of a "survey on the status of small and medium-sized corporations related to inter-Korean economic cooperation," conducted from Sept. 22 to Oct. 1, targeting 500 manufacturing small and medium-sized corporations, including 124 that had moved into the Kaesong Industrial Complex.
Among the corporations that had moved into the Kaesong Industrial Complex, 87.2% rated the complex's economic viability as "positive." In addition, 80% answered that they are willing to move back in if the complex restarts. As for necessary government support measures for a restart, the responses were, in order: ▲ establishing standards for compensation for corporations' damages (52.7%) ▲ easing political and military risks (25.5%) ▲ improving the passage, communication, and customs systems (9.1%).
In a question posed to all 500 corporations, 45.5% of responding small and medium-sized corporations said that inter-Korean economic cooperation has "a positive impact" on Korea's economic development and corporations' growth. As many as 36% of the firms also responded that North Korea's investment environment is "advantageous" compared with emerging countries such as China and Vietnam.
As advantages of inter-Korean economic cooperation (multiple responses), "ease of securing labor" was the most common at 25.1%, followed by ▲ geographical accessibility (21%) ▲ linguistic and cultural similarity (18.9%) ▲ ease of securing raw materials and resources (15.6%).
As for the preferred forms of pursuing inter-Korean economic cooperation, responses were, in order: ▲ economic special zones in border areas within North Korea (35%) ▲ outsourced production in North Korea by South Korean corporations (33.5%) ▲ economic special zones in border areas within South Korea (21%) ▲ joint operation of inter-Korean production bases in a third country (6.5%).
As government support measures needed to resume inter-Korean economic cooperation (multiple responses), "establishing legal instruments such as a special law on inter-Korean economic cooperation" was highest at 24.8%, followed by ▲ improving infrastructure such as passage, communication, and customs (22.5%) ▲ preparing measures for compensation for property and bodily damage (19.1%).
Chu Moon-gap, head of the Economic Policy Office at the Korea Federation of Small and Medium Enterprises, said, "Inter-Korean economic cooperation is a very important task for restoring the manufacturing base of small and medium-sized corporations and realizing a peace economy on the Korean Peninsula," adding, "In the current situation, where high tariffs in the United States and China's low-price offensive are causing difficulties, inter-Korean economic cooperation can be a new breakthrough for small and medium-sized corporations."