Opening Kaesong
Some representatives of foreign business groups located in South Korea will visit the Kaesong Industrial Complex today to tour the facilities and to check on the business conditions there.
An official of South Korea's Unification Ministry said yesterday that 20 businessmen from five foreign organizations including Christoph Heider, secretary-general of the European Chamber of Commerce in Korea, are taking a one day trip to the complex today to promote trade and business with South Korea.
Until now, there have been no foreign firms in the complex where 124 small and mid-sized South Korean companies currently hire around 54,000 North Korean workers.
The South's government has been pushing to attract foreign companies’ investments into the inter-Korean industrial complex of the Kaesong zone, and promising to help firms operate there to expand their sales profits. The South announced last year that it will support foreign investors in Seoul offering consultation services with marketing efforts to lead them into the zone.
Recently some foreign investors, including a Russian business group, expressed their interest in moving into the inter-Korean factory park. The Korean government welcomed them. However, it also made clear that there must be a consultation process before confirmation.
Last September, Voice of America reported that the lack of skilled labor is the biggest draw for investing in Kaesong, though relatively cheap rent, low labor cost, and tax benefits are quite attractive advantages too. It also mentioned an official in Seoul who said that the biggest hurdle for foreign investors is the restrictions on Internet and mobile phone usage. Due to tensions between the governments, the two Koreas do not allow access to the Internet.