Tensions brewing over N. Korea's unilateral wage hike at inter-Korean industrial park

Arirang News 2015-03-13

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South Korea has been asking North Korea to talk about the regime's unilateral decision to increase wages for workers at the inter-Korean Kaesong industrial complex.
With Pyongyang saying the hike was legitimate,… some observers say this could lead to another shutdown at the factory zone.
Arirang's Connie Kim has more.

Tensions are brewing over the Kaesong Industrial Complex as South Korea's offered deadline for talks over North Korea's unilateral decision to raise workers' wages at the complex expires on Friday.
Last month, North Korea decided to up its workers' minimum monthly wage by five-percent to 74 U.S. dollars.
To this announcement, South Korea remained firm calling on the North to come forward for discussions over wages.
Seoul also said that,... unless the two sides reach an agreement,... it would penalize South Korean companies complying with the wage hike.
South Korean operators at Kaesong have expressed concerns that a wage increase could affect their business.
But a day before the deadline, Pyongyang said the wage hike is a legitimate and normal exercise of its legislative rights, adding that it has no intention of negotiating with Seoul over its decision.

Some worry the tug-of-war could lead to a shutdown similar to what happened in 2013, but others say Pyongyang has too much to lose for another halt.


"North Korea is trying to get the upper hand over Seoul in regards to decisions at the Kaesong Complex. It may also be trying to earn more foreign currency by enforcing the wage hike."

Since opening in 2004, the Kaesong Industrial Complex has been a symbol of inter-Korean economic cooperation and a significant source of income for the North.
Experts forecast inter-Korean talks over wages at Kaesong could start once the joint South Korea-U.S. military drills wrap up in April.
Connie Kim, Arirang News.

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