South Korea Calls 2016 Closure of Kaesong Complex ‘Self-Injurious,’ Seeks Reopening

The Kaesong Industrial Complex Support Center, left abandoned after being blown up by North Korea. (Yonhap)

SEOUL, Feb. 10 (Korea Bizwire) — South Korea’s Unification Ministry on Tuesday described the 2016 shutdown of the Kaesong Industrial Complex as an act of “self-injury,” signaling a renewed effort under the Democratic Party–led government to revive one of the most visible symbols of inter-Korean cooperation.

The statement came on the 10th anniversary of the decision by the conservative administration of President Park Geun-hye to suspend operations at the joint factory park in response to North Korea’s nuclear test and long-range missile launches.

“The blanket suspension of the industrial complex in February 2016 impaired the foundation for inter-Korean trust and mutual growth,” a ministry official said, adding that the closure had undermined a key channel of engagement between the two Koreas.

The ministry also expressed “deep regret” that Seoul did not seize what it called a decisive opportunity to reopen the complex after North Korean leader Kim Jong-un signaled in January 2019 a willingness to resume operations without preconditions.

First launched in 2004, the Kaesong Industrial Complex, located just north of the Demilitarized Zone, once employed about 55,000 North Korean workers at roughly 120 South Korean firms. The project was widely viewed as both an economic partnership and a political bridge, offering a rare space for sustained cross-border contact.

This file photo shows the Demilitarized Zone and the Kaesong Industrial Complex in the namesake North Korean border city, seen from the border city of Paju in South Korea on Nov. 18, 2025. (Yonhap)

Its closure in 2016 marked a turning point in inter-Korean relations. In 2020, North Korea demolished an inter-Korean liaison office near the complex, deepening tensions.

The Unification Ministry said it hopes for the “prompt normalization” of Kaesong and emphasized the need to restore severed communication channels as a first step toward rebuilding trust. Internally, the government plans to prepare for a possible resumption of operations, including efforts to reinstate a support foundation for participating companies in cooperation with the National Assembly.

Officials also pledged continued assistance to South Korean businesses that suffered losses from the shutdown.

While a reopening would require a dramatic thaw in relations with Pyongyang — and likely careful navigation of international sanctions — the ministry’s remarks underscore a broader policy shift. A decade after its closure, Kaesong remains, in Seoul’s view, not just an industrial site but a barometer of whether dialogue between the divided Koreas can be revived.