South Korea shows US envoy N.Korean factories

By Jon Herskovitz

SEOUL (Reuters) – The U.S. ambassador to South Korea and
dozens of other diplomats went on a tour on Monday of an
industrial complex in North Korea that has been at the center
of a war of words between Seoul and Washington.

The trip to the Kaesong Industrial Park, where South Korean
firms use cheap land and labor, was arranged after the top U.S.
official for human rights in North Korea said the project might
simply end up providing funds to prop up Pyongyang’s leaders.

The two allies’ sparring over Kaesong comes at a time of
diplomatic tension over North Korea.

Pyongyang has refused to return to six-country talks on its
nuclear ambitions, and on Monday the Financial Times said North
Korea may be planning to test-fire a ballistic missile.

South Korea said the trip to Kaesong was designed to give
U.S. ambassador Alexander Vershbow and other diplomats a
first-hand view of a project Seoul sees as a model of
integration between the capitalist and communist economies of
the two Koreas.

South Korea shot back last month at the critical remarks
made by the U.S. official, Jay Lefkowitz, saying he was biased
and ill-informed about how Seoul dispenses aid to its neighbor.

Vershbow told reporters that talks were under way to
arrange for Lefkowitz to visit the industrial park next month.

“There are still some questions that people have in their
minds about Kaesong and I hope that the information that I pass
back will be helpful to my colleagues in understanding better
what is happening in Kaesong,” the ambassador said.

South Korea favors quiet diplomacy and engagement with its
neighbor, while Washington has taken a tougher line, including
clamping down on firms it suspects of helping the North in
illicit activities such as counterfeiting.

MISSILE TEST REPORT

South Korean Foreign Minister Ban Ki-moon accompanied the
group of about 80 diplomats, his first trip to North Korea
since taking office. Vershbow had not previously visited the
North since taking up his post in Seoul.

The diplomats toured the gleaming factories, snapped
pictures and spoke to North Korean officials at the park.

The park, run by an affiliate of the Hyundai group, is
located just a few hundred meters (yards) north of the
Demilitarized Zone that divides the peninsula.

There are currently 15 South Korean companies there,
turning out goods such as shoes, clothes and cosmetic cases.

South Korea envisions a day when about half a million North
Koreans will work at the park, turning out billions of dollars’
worth of goods.

South Korean factories at Kaesong pay a minimum monthly
wage of $50 for workers along with a $7.50 fee for social
insurance. The money is not paid directly to the workers, but
instead goes to the North Korean government, which then
dispenses the wages.

The Financial Times, citing Washington officials, reported
on Monday that Pyongyang was preparing for a possible test of
an intercontinental ballistic missile with the potential to hit
the United States.

Officials in Seoul, Tokyo and Washington said they had no
information indicating preparations for a test, although last
week Ban had said any missile test would be “a grave concern.”

North Korea shocked the world in August 1998 when it fired
a Taepodong missile that flew over Japan before splashing down
in the Pacific Ocean.

Its preparations for a missile test can be monitored by spy
satellites or surveillance planes. On Sunday, North Korea said
in an official media report that it would sternly punish U.S.
planes conducting espionage missions over its territory.

(Additional reporting by Jack Kim and by the TOKYO bureau)