50-667: The Kaesŏng Industrial Region ( KIR ) or Kaesŏng Industrial Zone ( KIZ ) is a special administrative industrial region of North Korea (DPRK). It was formed in 2002 from part of the Kaesŏng Directly-Governed City . On 10 February 2016, it was temporarily closed by the South Korean government and all staff recalled by the Park Geun-hye administration, although the former President of South Korea , Moon Jae-in , signalled his desire to "reopen and expand"
100-518: A Korean word ( Korean : 현대 ; Hanja : 現代 ) that means "modernity". In 1947, Hyundai Togun (Hyundai Engineering and Construction), the initial company of the Hyundai Group, was established by Chung Ju-yung . Hyundai Construction began operating outside of South Korea in 1965, initially entering the markets of Guam, Thailand and Vietnam. In 1950, Hyundai Togun was renamed Hyundai Construction . In 1958, Keumkang Company
150-515: A combined £575 million ($ 944 million). On 10 February 2016, in response to a rocket launch by the DPRK , South Korea announced that it would, for the first time, halt operations in the region, describing the launch as a disguised ballistic missile test . Seoul said all operations at the complex would halt, to stop the North using its investment "to fund its nuclear and missile development". The next day,
200-402: A concrete agreement, with South Korea's insistence on a provision to prevent North Korea from closing the complex again in the future. During the first week of August, North Korea reiterated that reopening the complex was in both nations' interest. On 13 August South Korea said it would start distributing insurance payments to businesses in the complex, but also said it was open to new wording on
250-489: A diverse range of activities including automobile manufacturing, construction, chemicals, electronics, financial services, heavy industry and shipbuilding. In the same period it had total annual revenues of around US$ 90 billion and over 200,000 employees. In December 1995, Hyundai announced a major management restructuring, affecting 404 executives. During 1997 Asian financial crisis, Hyundai acquired Kia Motors and LG Semi-Conductor. In 1998, Korea's economic crisis forced
300-459: A less urbanized area within a province or directly governed city. The more populous districts within provinces are cities ( si ; 시 ; 市 ). The city centers of the directly governed cities are organized into districts ( kuyŏk , equivalent to South Korean gu ). Rural parts of cities and counties are organized into villages ( ri , 리 ; 里 ). The downtown areas within cities are divided into neighborhoods ( dong , 동 ; 洞 ), and
350-686: A massive restructuring of local government. Previously, the country had used a multi-level system similar to that still used in South Korea . (The English translations are not official, but approximations. Names are romanized according to the McCune-Reischauer system as officially used in North Korea; the editor was also guided by the spellings used on the 2003 National Geographic map of Korea). The nine provinces ( to ; Korean : 도 ; Hanja : 道 ) derive from
400-550: A populous part of a county forms a town ( ŭp , 읍 ; 邑 ). Some counties also have workers' districts ( rodongjagu , 로동자구 ; 勞動者區 ). Hyundai Group Hyundai Group ( Korean : 현대그룹 ; Korean pronunciation: [ˈhjəːndɛ] ) is a South Korean conglomerate founded by Chung Ju-yung . The group was founded in 1947 as a construction company . With government assistance, Chung and his family members rapidly expanded into various industries, eventually becoming South Korea's second chaebol . Chung Ju-yung
450-659: A satellite launch and a claimed hydrogen bomb test in January 2016. The next day, the North announced it was expelling all South Korean workers and said it will freeze all South Korean assets and equipment at the jointly run factory park. All 280 South Korean workers present at Kaesŏng left hours after the announcement by the North. Construction started in June 2003, and in August 2003 North and South Korea ratified four tax and accountancy agreements to support investment. Pilot construction
500-530: A simple closure would never bar North Korea from testing nuclear weapons and launching missiles. They also say that the Kaesŏng Industrial Region was the last hope for peaceful resolution to everlasting tensions between the South and the North, but now that it is closed, South Korean citizens' fear over national defense will intensify. In December 2017, an expert panel investigating the decision to close
550-431: A supporting zone, roughly a third the size of the industrial zone, that was meant for life-quality operations. Specifically, this meant the creation of residential areas, hospitals, shopping centers, and even a proposed theme park to attract tourists. The Kaesong Industrial Park is run by a South Korean committee that has a 50-year lease that began in 2004. Hyundai Asan , a division of South Korean conglomerate Hyundai ,
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#1732772338750600-524: A tax collection notice. The notices were made by a unilateral decision by North Korea. The eight companies were informed of a notice to pay ₩ 170,208,077 ($ 160,000 US) in taxes; two of the companies had already paid $ 20,000 in taxes to North Korea. Unilateral decisions by the Central Special Direct General Bureau (CSDGB) to amend bylaws is a violation of Kaesŏng Industrial District Law, which requires that any revision of
650-453: A two-thirds reduction of the number of business units and a plan to break up the group into five independent business groups by 2003. In 2001, the founder Chung Ju-yung died, and the Hyundai Group conglomerate continued to be dismantled. In 2007, Hyundai Construction Equipment India Pvt. Ltd. was established in India. In 2010, Hyundai Group was selected as a preferred bidder by creditors for
700-586: A visit to North Korea by the Hyundai Group chairwoman led to a resolution to the North's demands, with mild wage increases and no change in land rents. In 2012, wages were estimated at $ 160 per month, about one-fifth of the South Korean minimum wage, and about a quarter of typical Chinese wages. In 2012, the Ministry of Unification was informed that eight of the current 123 companies had received
750-473: Is capable of producing 1.6 million units annually. The company employs about 75,000 people around the world. Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms worldwide. In 2012, Hyundai sold over 4.4 million vehicles worldwide. Popular models include the Sonata and Elantra mid-sized sedans. The Asan Foundation, established by Chung Ju-yung in 1977 with 50 percent of
800-550: Is educated, skilled, and fluent in Korean , whilst providing North Korea with an important source of foreign currency. As of April 2013, 123 South Korean companies were employing approximately 53,000 DPRK workers and 800 ROK staff. At times of tension between North and South Korea, southern access to the Industrial Park has been restricted. On 3 April 2013, during the 2013 Korean crisis , North Korea blocked access to
850-654: Is represented on all continents but Australia , and has a number of international subsidiaries under its control." As of 2017, these are the affiliated companies of the Hyundai Group. Hyundai branded vehicles are manufactured by Hyundai Motor Company, which along with Kia forms the Hyundai Kia Automotive Group . Headquartered in Seoul , South Korea , Hyundai operates in Ulsan the world's largest integrated automobile manufacturing facility, which
900-687: Is served by Korean State Railway from Panmun Station through the Pyongbu Line . There was rail access to South Korea (operated by Korail ) via the Gyeongui Line . An agreement to re-establish rail freight services was made in November 2007. The closest station in South Korea is Dorasan Station , from which road access can be taken. Limited road access was available for workers from South Korea via South Korea National Route 1 to
950-596: The 200 South Korean staff who remained in the industrial zone. On 26 April 2013, South Korea decided to withdraw all remaining staff, and on 4 May, the last seven South Koreans left the Kaesong Industrial Region, which thus was completely shut down. On 4 July, both countries agreed in principle that the Kaesong Industrial Park should be reopened, as tensions between the two began to cool. Six rounds of talks were held without reaching
1000-575: The DMZ and then into Kaesŏng via Asian Highway 1 in the North. The route between the two highways was a paved road and part of the AH1 network. There were no connecting roads en route and a turnaround was available only in the South before entering the North. There is no option of air travel available from Kaesŏng to the South. Sohung South Airport is the closest airport to Kaesŏng in the North, but it serves no South Korea-bound flights. The closest airports in
1050-835: The Inter-Korean Liaison Office―a building created to keep peaceful communication between the two countries. However, in December 2020, South Korea's National Assembly passed a law that penalizes South Korean citizens who send anti-North Korean material across the border. On 10 October 2018, South Korea resumed supplying water to the region. On 11 October 2018, the local water treatment plant had been restored. There are two modes of travel to Kaesŏng, road and rail. Transportation links with South Korea were severed in October 2024, when North Korea dug trenches across roads and rail lines going to South Korea. Kaesŏng Industrial Region
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#17327723387501100-508: The Kaesong Industrial region. This came as tensions began escalating rapidly between Seoul and Pyongyang. On 8 April, North Korea recalled all 53,000 North Korean workers from the Kaesong Industrial complex, fully suspending its operations. However, 406 South Koreans remained at the complex after its effective closure. On 17 April, North Korea barred a delegation of 10 South Korean businessmen from delivering food and supplies to
1150-493: The Korean peninsula. The Saenuri Party, the ruling party at the time, said during the announcement of Kaesŏng Industrial Region's closure, "North Korea conducted the 4th nuclear test and rocket launch regardless of persistent warnings from the South Korean government and the international society. Communication and persuasion, or the 'carrots,' do not work anymore. We need more powerful sanctions on North Korea." Some people agree with
1200-411: The North announced it was expelling all South Korean workers and said it would freeze all South Korean assets and equipment at the jointly run factory park. All 280 South Korean workers present at Kaesŏng left hours after the announcement by the North. On Thursday, 11 February, a few minutes before midnight, the South announced it had shut off the supply of electricity and water into Kaesong that supplied
1250-525: The Saenuri Party, arguing that South Korea should have a more threatening and uncompromising attitudes toward North Korea so that it cannot conduct such tests again. On the other hand, The Minjoo Party and People's Party, which were the opposition parties, counter-argued that North Korea has never stopped its provocation even during its Arduous March, or the North Korean famine , emphasizing that
1300-438: The South are Gimpo International Airport and Incheon International Airport , from which road access can be taken to the industrial region. 37°56′N 126°38′E / 37.933°N 126.633°E / 37.933; 126.633 Administrative divisions of North Korea The administrative divisions of North Korea are organized into three hierarchical levels. These divisions were created in 2002. Many of
1350-492: The acquisition of Hyundai Engineering & Construction. As of 2023, Hyundai Group "includes divisions that build and export diesel and electric locomotives , freight cars, and passenger coaches for the railroad industry, and offshore drilling and extraction equipment to the oil industry ." Hyundai's "[i]nternational exports range from heavy industrial equipment to consumer products, and include cement , pianos , military uniforms , and consumer electronics products. Hyundai
1400-812: The complex and make utmost efforts to reopen it." On 14 September 2018, the Inter-Korean Liaison Office located in the region officially opened. The office's purpose was to further communication between the two Koreas. On 16 June 2020, North Korea destroyed the building via explosion, amidst heightened tensions between the countries. North Korea blew up the Inter-Korean Liaison Office in June 2020 in response to South Korea not banning or punishing defectors from sending leaflets and flash drives into North Korea. The South Korean government did not take strict measures against North Korea, even though North Korea intentionally bombed
1450-441: The decision's legitimacy and could constrain our ground over a future restart of the complex, while hampering the companies' rights to protect their assets due to the hasty pullout process." A group of businesses who suffered losses of 250 billion won ($ 200 million) due to the closure demanded an apology and said, "Now that the wage-diversion claim has proved groundless, the government must apologize for abusing state power to suspend
1500-522: The development of collaborative ventures with South Korea and other countries. One of them, the Sinuiju Special Administrative Region , was intended to draw Chinese investment and enterprise, but as of 2006 appears never to have been implemented. The special administrative regions do not have any known second- and third-level subdivisions. The most common second-level division is the county ( kun ; 군 ; 郡 ),
1550-538: The factory zone. In South Korean domestic politics, there were two opposing viewpoints toward the 2016 closure – while the Saenuri Party argued for the closure, stating that it was one and the only means to end North Korea's provocation, two other parties, The Minjoo Party and the People's Party , objecting to Saenuri, asserted that more communication is needed and that the closure would only escalate tensions in
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1600-494: The group to begin restructuring efforts, which include selling off subsidiaries and focusing on five core business areas. Nevertheless, Hyundai began South Korean tourism to North Korea's Kumgangsan . In 1999, Hyundai Asan was established to operating Kumgang tourism, the Kaesong Industrial Complex , and other inter-Korean work. In April 1999 Hyundai announced an enormous corporate restructuring, involving
1650-495: The group's shipyard was incorporated as Hyundai Shipbuilding and Heavy Industries and renamed Hyundai Heavy Industries in 1978. In 1976, Hyundai Corporation was established as a trading arm. The same year, Asia Merchant Marine Co. established, later renamed Hyundai Merchant Marine. In 1977, Asan Foundation was established. In 1983 Hyundai entered the semiconductor industry through the establishment of Hyundai Electronics (renamed Hynix in 2001). In 1986, Hyundai Research Institute
1700-558: The industrial project. By the end of the first full year of operation, 11 South Korean firms were operating in the KIR. By 2006, the 15 initial firms had all begun production including JCCOM, Yongin Electronics, TS Precision Machinery, JY Solutec, Magic Micro, Hosan Ace, Romanson, Munchang Co., Daewha Fuel Pump, Taesong Industrial, Bucheon Industrial, Samduk Trading, Shinwon, SJ Tech, and Sonoko Cuisine Ware. In February 2016, shortly before
1750-452: The issue of joint control of Kaesŏng. The move, seen as precursor to formally closing the region, sparked a seventh round of talks which South Korea label as "final". An official agreement to reopen the complex was reached and signed on 15 August. The agreement included provisions designed to ensure against a similar shutdown in the future. A joint committee was formed to determine if compensation will be provided for economic losses caused by
1800-475: The laws be negotiated between the North and the South. For the first time, in 2011, the companies in the KIR recorded an average operating profit of ₩56 million ($ 56,241 US), finally operating in the black after years in deficit. Green Doctors, an NGO founded in Busan in January 2004, received official government permission to open a hospital in the region in 2005. Since then, it has provided medical treatment to
1850-403: The most pressing are U.S. economic sanctions against the North, prohibiting imports of key technologies and goods, such as computers. In May 2009, Pyongyang announced it unilaterally scrapped wage and rent agreements at the industrial park. In June 2009, they also demanded new salaries of $ 300 a month for its 40,000 workers, compared with the $ 75 they had been receiving prior. In September 2009,
1900-409: The park found that there was no evidence that North Korea had diverted wages to fund its nuclear program. The head of the panel Kim Jong-soo said, "The presidential office inserted the wage-diversion argument as major grounds, yet without concrete information, sufficient evidence and consultations with related agencies, mainly citing defector testimonies that lack objectivity and credibility. This impairs
1950-410: The park was closed for the last time, the number of South Korean firms operating in the park had increased to 124. The different types of manufacturing performed in the park broke down to 71 textile and clothing firms, nine chemical product firms, 23 that dealt in metals and machinery, 13 that produced electronics, and eight firms of other kinds of production. The zone faces a number of obstacles. Among
2000-544: The region in 2017. Its most notable feature is the Kaesŏng industrial park , which operated from 2004 to 2016 as a collaborative economic development with South Korea (ROK). The park is located ten kilometres (six miles) north of the Korean Demilitarized Zone , an hour's drive from Seoul , with direct road and rail access to South Korea . The park allows South Korean companies to employ cheap labour that
2050-590: The region to all South Korean citizens. On 8 April 2013, the North Korean government removed all 53,000 North Korean workers from the Kaesŏng industrial park, which effectively shut down all activities. On 15 August 2013, both countries agreed that the industrial park should be reopened. On 10 February 2016, the South Korean Ministry of Unification announced that the industrial park would be "temporarily" closed down and all staff recalled, partly in protest over continued North Korean provocations, including
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2100-529: The shutdown. On 13 September, before the reopening of Kaesŏng Industrial region, the two governments held a subcommittee meeting to iron out additional issues regarding entrance, legal stay, communication, customs and passing. This also discussed the resumption of tourism in the Mount Kumgang Tourist Region . On 16 September, Kaesŏng was reopened after five months. All of the 123 companies operating in Kaesŏng experienced losses equaling
2150-554: The traditional provinces of Korea , but have been further subdivided since the division of Korea . They are large areas including cities, rural and mountainous regions. The four special cities ( t'ŭkpyŏlsi ; 특별시 ; 特別市 ) are large metropolitan cities that have been separated from their former provinces to become first-level units. Four other cities have been directly governed in the past, but were subsequently reunited with their provinces or otherwise reorganized. The three special administrative regions were all created in 2002 for
2200-447: The units have equivalents in the system of South Korea . At the highest level are nine provinces and four special municipalities. The second-level divisions are cities, counties, and districts. These are further subdivided into third-level entities: towns, dongs (neighborhoods), ris (villages), and workers' districts. The three-level administrative system used in North Korea was first inaugurated by Kim Il Sung in 1952, as part of
2250-551: The workers at Kaesŏng until the closure of the complex. The doctors who work there received no salary. In May 2010, following the sinking of the ROKS Cheonan and South Korea's response, North Korea severed ties with South Korea and shut its Consultative Office; however, existing activities in the zone maintained production activities, and transport and telephones to South Korea were operating normally. On 3 April 2013, North Korea began to deny South Korean employees access to
2300-469: Was completed in June 2004, and the industrial park opened in December 2004. In the park's initial phase, 15 South Korean companies constructed manufacturing facilities. Three of the companies started operations by March 2005. First phase plans envisaged participation by 250 South Korean companies from 2006, employing 100,000 people by 2007. The park was expected to be complete in 2012, covering 65 km and employing 700,000 people. The plan also called for
2350-411: Was directly in control of the company until his death in 2001. The company spun off many of its better known businesses after the 1997 Asian financial crisis and founder Chung Ju-yung's death, including Hyundai Motor Group , Hyundai Department Store Group , and Hyundai Heavy Industries Group . The Hyundai Group now focuses on elevators and tourism to Mount Kumgang . The name "Hyundai" comes from
2400-469: Was established to make construction materials. In 1965, Hyundai Construction began its first overseas venture, a highway project in Thailand. In 1967, Hyundai Motors was established. Hyundai Heavy Industries was founded in 1973, and completed the construction of its first ships in June 1974. In 1975, the group began construction on an integrated car factory and launched a new Korean vehicle. In 1973,
2450-510: Was established. In 1986 a Hyundai-manufactured IBM PC-XT compatible called the Blue Chip PC was sold in discount and toy stores throughout the US. It was one of the earliest PC clones marketed toward consumers instead of business. In 1988, Asian Sangsun was established, renamed Hyundai Logistics in 1992. By the mid-1990s Hyundai comprised over 60 subsidiary companies and was active in
2500-588: Was hired by Pyongyang to develop the land. The firms take advantage of low-cost labor available in the North to compete with China to create low-end goods such as shoes, clothes, and watches. In 2006, Park Suhk-sam, senior economist at the Bank of Korea , predicted the industrial zone could create 725,000 jobs and generate $ 500 million in annual wage income for the North Korean economy by 2012. Five years later, another $ 1.78 billion would be earned from annual corporate taxes levied on South Korean companies participating in
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