An Increasing Inter-Korean Economic Integration: The Case of the Gaeseong Industrial Park

Both North Korea and South Korea are at a historical crossroad of inter-Korean economic cooperation toward integration. The most auspicious aspect of North Korean reform was firm commitment to launch joint ventures with South Korea to aid in the construction of Gaeseong Industrial Park, located 44 miles from the Seoul metropolitan area. The Gaeseong Special Economic Zone is an administrative zone with special legal status; it is legally separated from the rest of North Korea, and under the guidance of market-oriented principles it is provided with economic autonomy. This paper assesses various perspectives regarding the Gaeseong Industrial Park.