Gaeseong dilemma

Gaeseong dilemma (개성/開城 딜레머) is referred to a sensitive situation where the merits and demerits of North and South are interweaved with each other since the Gaeseong Industrial Complex (GIC or KIC) started its operation in 2004.

The fact that the three-phase GIC project has stopped at the initial stage of the first phase of the project shows such dilemma.

SWOT Analysis of GIC
Each of the North and the South has conflicting, or sometimes identical, merits and demerits in GIC as illustrated below.

The question is what the South government and businesses alike are faced with in GIC.

Prospects
In August 2012, the North Korean authorities concerned notified unilaterally the newly amended Enforcement Ordinance of GIC Tax Regulation (개성공업지구 세금규정 시행세칙) of the Southern counterparty.

It is reported that the new Enforcement Ordinance contains a number of bombshell provisions, which could jeopardize the business operations of the South Korean enterprises. It will be wise the both parties cooperate each other on the basis of mutual understanding of the interweaved merits and demerits in GIC.