The Factors of South Korea’s Closure of the Kaesong Industrial Complex (KIC) in 2016

Amalia Mastur, Siti R. Susanto

2018

Abstract

South Korea’s decision to close Kaesong Industrial Complex (KIC) on February 10th 2016 was a response to North Korea’s nuclear testing. As a result, the closure led to economic losses for South Korean companies of approximately 2 trillion won. KIC and its political implications are significant and need to be examined since it was the only remaining bilateral cooperation between the two Korean states, as they had been divided after the Korean War in 1953. This research paper aimed to examine the reasons behind the decision that was made by South Korea to close the KIC in 2016. This research is an explanative research study that used qualitative data analysis. The theoretical framework that was used was foreign policy and rational choice theories. This paper found that South Korea’s response to North Korean’s nuclear testing in 2016 regarding the role of KIC was different compared to their response to the previous nuclear tests in 2006, 2009 and 2013. Regarding the last three nuclear tests, South Korea had not interrupted the operations of the complex. On the contrary, North Korea was the one who usually disrupted the complex; they even choose to close the KIC in 2009 and 2013. This research revealed the four determinants that influenced South Korea’s decision to close KIC; North Korean governmental revenue, nuclear proliferation, the political tension between the two Koreas, and pressure from the United States.

Paper Citation

in Harvard Style

Mastur A. and Susanto S. (2018). The Factors of South Korea’s Closure of the Kaesong Industrial Complex (KIC) in 2016.In Proceedings of the 4th International Conference on Contemporary Social and Political Affairs - Volume 1: ICoCSPA, ISBN 978-989-758-393-3, pages 289-294. DOI: 10.5220/0008820602890294

in Bibtex Style

@conference{icocspa18,
author={Amalia Mastur and Siti R. Susanto},
title={The Factors of South Korea’s Closure of the Kaesong Industrial Complex (KIC) in 2016},
booktitle={Proceedings of the 4th International Conference on Contemporary Social and Political Affairs - Volume 1: ICoCSPA,},
year={2018},
pages={289-294},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0008820602890294},
isbn={978-989-758-393-3},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th International Conference on Contemporary Social and Political Affairs - Volume 1: ICoCSPA,
TI - The Factors of South Korea’s Closure of the Kaesong Industrial Complex (KIC) in 2016
SN - 978-989-758-393-3
AU - Mastur A.
AU - Susanto S.
PY - 2018
SP - 289
EP - 294
DO - 10.5220/0008820602890294