Kaesong Industrial Complex Association: "Constitutional Court's Dismissal Is a Death Sentence for Inter-Korean Economic Cooperation"

On the afternoon of the 27th, when the Constitutional Court ruled the 2016 closure of the Kaesong Industrial Complex constitutional, businesspeople belonging to the Kaesong Industrial Complex Association gathered in front of the Constitutional Court in Jongno-gu to hold a press conference condemning the ruling.
[Photo by Yonhap News]

[Asia Economy, reporter Kim Jonghwa] The Kaesong Industrial Complex Association strongly objected to the Constitutional Court's ruling that the Park Geun-hye administration's 2016 closure of the Kaesong Industrial Complex was constitutional, stating, "After waiting for more than five years, this dismissal is effectively a death sentence not only for the Kaesong Industrial Complex but also for inter-Korean economic cooperation."

The association filed a constitutional petition (2016Hun-Ma364) in May 2016, after the Park Geun-hye administration fully suspended the Kaesong Industrial Complex on February 10, 2016, arguing that the full suspension did not follow proper legal procedures.

"We had hoped that the Constitutional Court would sound the alarm against the government's unilateral and unlawful actions and provide an opportunity to reopen the Kaesong Industrial Complex," the association said. "However, we are deeply disappointed and regretful, as it seems the Court considered only the practical difficulties."

The association also insisted that compensation for the government's wrongdoing is necessary. "Although the Constitutional Court recognized the political nature of the government's actions, it also confirmed that certain legal procedures were violated and that significant damage occurred. Therefore, legitimate compensation for companies affected by the full suspension of the Kaesong Industrial Complex must be provided in the future," the association emphasized.

The association urged, "The government and the National Assembly should enact a special law to compensate for damages caused by the full suspension of the Kaesong Industrial Complex so that companies on the brink of survival can receive fair compensation."

Lee Jaechul, the association's president, said, "Companies are bearing the full brunt of the damage caused by government policy. It is wrong that even the damages confirmed by the government's own investigation have not been paid. Even if it requires enacting a special law, the government must pay the confirmed damages to the businesspeople."