Joint venture plays down claims of exploitation as it woos investors
While the international community has been engaged in diplomatic manoeuvrings to prevent a possible missile launch by Pyongyang, the wheels of industry have continued turning at a controversial industrial complex in the reclusive country that has been accused of worker exploitation.
In vast, modern factories in Kaesong Industrial Park, just across from the demilitarised zone, more than 6,000 North Koreans produce everything from watches to dresses.
In operation for little more than 11/2 years, the Kaesong industrial complex is a unique venture created with a combination of South Korean capital and cheap North Korean labour.
At present, only a handful of South Korean companies are located in the area. But as part of a public relations drive to attract foreign investors, Seoul last week invited more than 100 foreign businesspeople and diplomats to tour the site. Seoul is hoping to lure investors with wages that compete with countries like China and Vietnam.
'Let's face it, one of the reasons why this all works is because of the low wages,' said John Boynton, of Doran Capital Partners, a property management company.