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

Kaesong Industrial Complex (KIC) is a 1.25-square miles of the industrial park is six miles north of the demilitarized zone in the Democratic People's Republic of Korea. The complex includes both North and South Korean workers and subsidized by Seoul. As a result of an agreement between North and South Korea in 2000, Kaesong was the only ray of hope for economic cooperation between the separated and remained open for business, despite a series of military operations over the next ten years. This case is the political and economic risks and the possibility of entering through the lens of Kaesong Bright clothing Ray, a hypothetical South Korean firm textile industry. Jihoon Lee, CEO of Bright Ray, it is recommended to Chief Financial Officer and Senior Economist trusted enter Kaesong. But risks abound. North Korea's nuclear threat and a change in leadership brought a new wave of uncertainty on the Korean peninsula. Facing its upcoming presidential election, much remains to be determined in Seoul on the future of economic policy and advocacy for Pyongyang. The meeting Jihoon Lee with his financial adviser approaching bright light guide should consider the various influences and factors affecting the input of Kaesong, the political instability of economic opportunities and the potential to improve the working conditions of North Korean workers. "Hide
by Condoleezza Rice, Amy Zegart, Tori L. McMurdo Source: Stanford Graduate School of Business 8 pages. Publication Date: 04 Oct 2012. Prod. #: IB103-PDF-ENG

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