Political Risk in the Kaesong Industrial Complex Harvard Case Solution & Analysis

The Kaesong Industrial Complex (KIC) is 1.25-square-mile industrial development park six miles to the north of the Demilitarized Zone in Democratic People's Republic of Korea. The composite contains both North and South Korean workers, and is subsidized by Seoul. The consequence of an arrangement between North and South Korea in 2000, Kaesong stood as the sole beacon of hope for economic co-operation between the states that were separated, and stayed open for business despite numerous hostilities over the ensuing decade.

His CFO and a trusted senior economist, persuade the CEO of Brilliant Ray, Jihoon Lee to enter Kaesong. But dangers abound. Direction transition and North Korea's nuclear hazards have brought a new wave of doubt to the Korean Peninsula. Confronting its own coming presidential election, outreach toward Pyongyang and much remains to be determined in Seoul regarding future economic policy. As Jihoon Lee's assembly with his financial adviser nears, Smart Ray's leaders must consider many different impacts and factors involved in entering Kaesong, from political instability to economic opportunity, and the possibility to improve the working state of North Korean employees.

Political Risk in the Kaesong Industrial Complex Case Study Solution

PUBLICATION DATE: October 04, 2012 PRODUCT #: IB103-PDF-ENG

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