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Institutional Blind Spots in Inter-Korean Economic Cooperation: A Case Study of ‘KIC-Adjacent Enterprises’

  • The Journal of Northeast Asia Research
  • Abbr : NEA
  • 2026, 41(1), pp.183~208
  • DOI : 10.18013/jnar.2026.41.1.007
  • Publisher : The Institute for Northeast Asia Research
  • Research Area : Social Science > Political Science > International Politics > International Relations / Cooperation
  • Received : December 31, 2025
  • Accepted : February 21, 2026
  • Published : February 28, 2026

Jinmok Kim 1

1동국대학교 북한학연구소

Accredited

ABSTRACT

This study departs from the conventional view that dichotomizes inter-Korean economic cooperation into the Kaesong Industrial Complex(KIC) and general inland investment. Instead, it investigates structural blind spots in the institutional framework through an analysis of “KIC-Adjacent Enterprises.” Based on an empirical case study of Enterprise A, an equity joint venture, the study reveals that while these enterprises secured locational proximity in order to leverage the KIC’s infrastructure spillover effects, they occupied a dual status and were institutionally excluded from the legal protection afforded by the Kaesong Industrial District Act. A comparative analysis further demonstrates that although such enterprises were connected to the KIC in terms of logistics and physical access, they remained disconnected from critical infrastructure, including electricity and water. Moreover, due to the absence of institutional safeguards during political crises such as the December 1st Measure and the May 24th Measure, these enterprises were found to be significantly more vulnerable than tenant companies within the KIC. This study suggests that flexibility in expanding the scope of institutional application is essential for future inter-Korean economic cooperation.

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