Two South Korean Officials Are Reportedly Prevented From Entering Jointly Run Kaesong Industrial Complex In North Korea
On Wednesday, North Korea reportedly blocked the entry of two South Korean officials into the jointly-run Kaesong Industrial Complex over an alleged conflict in both countries' management committees supervising the complex, reported Star Tribune on Wednesday.
An official from South Korea's Unification Ministry stated that it is unknown to them why the two officials were prevented from entering the complex where South Korean employees of the Kaesong Industrial Complex normally cross the border via commute to get to work.
One of the two officials denied entry included the vice chairman of Seoul's management committee, who was allegedly been involved in wages, taxes and fees negotiations.
According to the Voice of America on Wednesday, South Korean companies operating at the Kaesong Industrial Complex are to start paying a land-use tax to the North this year. An inter-Korean deal regulating the management of the complex stated that South Korean companies may operate tax-free in the first 10 years after the establishment of the complex in 2004.
Deputy spokeswoman for the ministry Park Soo Jin said that the government of South Korea will be negotiating with the North on tax payment.
"North Korea has indicated its intent to discuss the issue orally last November, but there has been no request or notification from the North Korean side, thus there has been no discussion between the two sides," said Park in a press briefing.
Both countries have also reportedly struggled to negotiate over wage levels for the 53,000 North Korean workers who are employed by around 120 South Korean factories in Kaesong complex, until they both agreed on August on a five percent increase in minimum wages.
Kaesong Industrial Complex is one of the very rare symbols of cooperation between the North and the South, with flags of both nations seen flying around the complex, noted CNN on May 7.
Its establishment in 2004 has allowed South Korean firms to take advantage of the low North Korean labor cost, while the North gains a large revenue by taking a certain unrevealed amount of salary from is workers within the complex.
However, due to the recurring tension between both nations, workers at the complex continue to worry about the future of the joint venture.
The operation of the Kaesong Industrial Complex has reportedly been disrupted many times due to the unstable and rather violent relations of the North and the South causing firms around $900 million in losses.