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The Study on the Development Strategies for the Gaeseong Industrial Park in North Korea

Lee, Sang Jun 1

1국토연구원

Accredited

ABSTRACT

The Gaeseong Industrial Park as a special economic zone in North Korea has a significant meaning as a strategic area for inter-Korean cooperation and international economic cooperation. This study aims at suggesting the development strategies for the Gaeseong Industrial Park in the aspects of inter-Korean economic cooperation and economic cooperation in Northeast Asia. In the short-term, the Gaeseong Industrial Park should be developed as a light industry park based on the complementarity of production factors between the two Koreas. In the mid and long-term, it should be developed in the connection with new industries in the metropolitan area in South Korea. Also, the tour course connected between the Gaeseong Industrial Park and the Imjin River Area will be needed. In the long-term, Inchoen could be a center of manufacturing-related producer services to the Gaeseong Industrial Park. The Hong Kong-Shenzhen case is instructive for creating cooperation models of Inchoen-Gaeseong economic cooperation. In the aspect of economic cooperation of Northeast Asia, the Gaeseong Industrial Park should make a new economic relationship with Free Trade Zones in Qingdao, Tianjin and Dalian in China. IT and electronics could be major strategic industries for the Gaeseong Industrial Park. Also, historic tour connecting Gaeseong, Qingdao, Tianjin and Dalian could be a chance to the Gaeseong Industrial Park. However, resolving North Korea's nuclear problem is the most important issue for the success of the Gaeseong Industrial Park because tension over its nuclear program and investors' doubts about the wisdom of doing business in a communist nation with a moribund economy could delay the project.

Citation status

* References for papers published after 2023 are currently being built.