By Kim Tae-gyu, Park Song-wu
Staff Reporters


KAESONG - Celebrating the first production of goods in the Kaesong Industrial Complex, Unification Minister Chung Dong-young on Wednesday urged North Korea to resume government-level talks, which have been suspended for six months.

``It’s very regrettable that the inter-Korean talks between the two Koreas have been stalled at this critical point in time,’’ Chung said during his keynote speech. ``I think there is no problem we can’t resolve if we respect each other’s stance.’’

Reflecting upon the past several months, which were full of unexpected conflict with Pyongyang, including problems triggered by the mass defection of North Korean refugees in late July, Chung said: ``We should have addressed these issues more wisely.’’

Chung was visiting North Korea for the first time since joining the Cabinet in June to celebrate the first production of pots by Livingart, a Seoul-based kitchenware manufacturer, in a pilot zone of the mammoth industrial park just north of the heavily fortified demilitarized zone.

He said Seoul has a comprehensive and detailed plan to push forward with the inter-Korean project.

``The (Seoul) government will fully support the Kaesong complex and help it realize global competitiveness,’’ Chung said. ``We are ready to cooperate (with Pyongyang) to further develop this complex’s infrastructure, including roads and railways, to increase industrial output.’’

A dedication ceremony at the Livingart plant was attended by about 400 representatives from the South and some 50 from the North, including Ju Dong-chan, who heads Pyongyang’s special zone management agency.

``I hope the Kaesong project picks up speed,’’ Ju said while exchanging pleasantries with Chung. ``(The South) promised to complete construction for 15 companies this year, but only one has been built.’’

Of note among the South’s visitors were Hyundai Group chairwoman Hyun Jeong-eun, Hyundai Asan president Kim Yoon-kyu and around 60 lawmakers.

Hours after the ceremony, the first merchandise made in the complex went on sale in Seoul, marking a new milestone in inter-Korean economic cooperation.

Among the first made-in-Kaesong products, about 1,000 sets of stainless pots were immediately transported to the South, hitting the shelves of Lotte Department Store in central Seoul.

Fourteen Livingart technicians are now working at the cookware maker’s two-story factory, which employs 255 North Korean workers. It plans to increase the headcount to 380 when production goes into full swing.

The first of Kaesong’s goods comes four years after the industrial park project was agreed to in August 2000 as the most positive result of the June 2000 summit meeting between the leaders of the two Koreas.

In a speech celebrating the event, chairwoman Hyun hailed the landmark feat in economic collaboration between the two Koreas.

``The fact that we kept the promise of rolling out made-in-Kaesong products this year confirms the likelihood of the Kaesong park’s future success as well as the immeasurable potential of the inter-Korean economic community,’’ Hyun said.

In August 2000, Hyundai Asan agreed with North Korea to develop a 20-million-pyong (66 million square meters) complex in Kaesong, about 60 kilometers North of Seoul, at a cost of 200 billion won.

Currently, the first phase of construction is underway for housing 300 companies, with completion aimed for 2007.

Through a three-stage development plan lasting until 2011, Hyundai Asan predicts the Kaesong park will attract 2,000 companies, mostly from South Korea, while employing 700,000 North Koreans and 100,000 South Koreans.

According to the Hyundai Research Institute in South Korea, the Kaesong project is expected to provide more than $9.6 billion in economic benefits to Pyongyang and $74.9 billion to Seoul by 2011.

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