The Korea Herald

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Koreas likely need more time to set reopening date for Gaeseong complex

By Korea Herald

Published : Sept. 10, 2013 - 20:55

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South and North Korea will likely need more time to resolve outstanding details necessary for setting a reopening date for the joint factory park in the communist country, official sources said Tuesday.

The second joint committee meeting is a follow-up to negotiations carried out last week at the four sub-committee meetings, the Ministry of Unification said. Last week's meetings followed a landmark agreement that was reached on Aug. 14 to normalize operations at the Gaeseong Industrial Complex in the North Korean border city of the same name.

The pact outlined the creation of a joint committee with four sub-committees, allowing Seoul and Pyongyang an equal say in the running of the complex. The committee was previously overseen by a North Korean governing body.

"It is a package deal and all sides understand that conditions must be met in order for a date to be fixed for business operations to resume," said a ministry official.

He said Seoul has forwarded its demands on safeguard proposals to the North through the joint committee session that can lead to the progressive growth of the industrial complex.

An emphasis has been placed on safeguards following the North's unilateral shutdown of the complex in early April. It had cited mounting political and military tensions as the reason for the closure. The closure halted all operations and cost the 123 South Korean factories an estimated 1.05 trillion won (US$968 million) in losses.

"The North is looking at the proposals made, but because they require consultations with Pyongyang, it is taking time," the source who declined to be identified said.

He said certain issues still need to be ironed out, such as the safety of South Korean personnel who could be detained by North Korean authorities, and how to settle business disputes and other developments that may occur in the course of running the factory park. 

Other issues were touched upon, such as investment protection, communications and customs, internationalization and compensation for companies affected by the five-month-long shutdown of operations.

"On the broad front there are no disputes, yet some details are taking longer to resolve, even though negotiators are not creating new rules," he said.

The official said the ongoing process is primarily to give more substance to pacts that were made in the past yet not followed by the North for various reasons. The two Korea had inked an agreement covering all aspects of running the complex in 2003. The complex first began churning out products in late 2004.

The source said that despite sluggish gains being made in some areas, Seoul and Pyongyang concurred on the need to internalize the complex and create a permanent secretariat.

Besides the joint committee talks, the North has agreed to allow South Korean technicians and engineers to stay overnight at Gaeseong to make repairs.

The ministry said 27 people from South Korean energy, telecommunication and water resources will stay overnight at Gaeseong to help speed up repairs. In the past all personnel were pulled out at night, the official said.

This marks the first time since May 3 when Seoul pulled all of its personnel that people will sleep at the complex.

Related to the delay in the talks, other insiders pointed out that both sides are approaching talks in a cautious manner and are trying to incorporate their views into any binding agreement that is signed.

Seoul has made clear that it is not pushing the North to accept all of its terms at this point, although it wants to see the communist country's willingness to make a competitive industrial park that meets global standards.

Seoul has demanded safeguards for the complex so that it will not be shuttered again for political or military reasons.

Pyongyang, on the other hand, has advocated for an immediate reopening and frequently accused the South of dragging its feet and stalling for time. (Yonhap News)