North Korea: The Politics of Kaesong

North Korea declared the "nullification" of all current contracts and regulations governing the operation of South Korean companies in the joint economic development zone in Kaesong on May 15. The announcement follows more than a year of bickering over the joint industrial zone, with Pyongyang apparently pushing for increased revenues from the projects while threatening to close the zone if its demands are not met. The north ultimately may be less interested in the potential additional cash than in pressuring the South Korean government.