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

Political Risk in the Kaesong Industrial Complex Case Solution

The Kaesong Industrial Complex (KIC) is a 1.25-square-mile industrial park 6 miles north of the Demilitarized Zone in the Democratic People's Republic of Korea. The complex consists of both North and South Korean employees, and is funded by Seoul. The outcome of an arrangement in between North and South Korea in 2000, Kaesong stood as the sole beacon of expect financial co-operation in between the split states, and stayed open for service regardless of a variety of lack of controls over the taking place years. This case evaluates the political and financial threats and chances of getting in Kaesong through the lens of Bright Ray Apparel, a theoretical South Korean fabric production company. Jihoon Lee, Bright Ray's CEO, is motivated by his CFO and a relied on senior economic expert to go into Kaesong. However threats are plentiful. North Korea's nuclear dangers and management shift have actually brought a new age of unpredictability to the Korean Peninsula. Facing its own approaching governmental election, much stays to become identified in Seoul concerning future financial policy and overreach towards Pyongyang. As Jihoon Lee's conference with his monetary advisor nears, Bright Ray's management need to think about a range of impacts and elements associated with going into Kaesong, from political irregularity to financial chance, and the prospective to enhance the working condition of North Korean workers. This case is readily available for buy from ECCH.

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