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Knowledge Management And Transfers Between North And South Korea At The Kaesong Industrial Complex, Jeffrey L. Gower

Jeffrey L Gower

The countries of North Korea and South Korea entered into an agreement in 2002 to develop a Special Economic Zone in the Kaesong Industrial Region of North Korea. The resultant Kaesong Industrial Complex, or KIC, was designed to attract South Korean investment and supply South Korean firms with inexpensive North Korean labor to be directed with South Korean management, in return for hard currency payment of land rents and employment for North Korean workers. Other KIC competitive advantages include proximity to the Seoul consumer market and a workforce that speaks a common language. However, North Korean labor had little experience …