author : Seog-Ki Lee(Industrial Cooperation and Globalization Division)

1. Introduction
On May 26, 2005 when the North Korean nuclear crisis had become a top issue in South Korea, South Korean stars made their debut in a fashion show in the North Korean city of Gaeseong. A company affiliated in the Gaeseong Industrial Park(GIP) had sponsored the event. The fashion show, which temporarily made it seem like Gaeseong was no different than any place in South Korea, showed that the GIP would brightened future relations between North and South Korea. Furthermore, the event was a great example of change being made in the North. About 6 months prior to this event on December 15, 2004, the first product of the GIP was born by integrating South Korea s capital and technology and North Korea s labor. Such economic cooperation has been developing at the GIP between North and South Korea ever since. Despite the many problems of the GIP project, the project itself has been a relative success until now on. However, the real trouble lies ahead. In order for the GIP to become a economically cooperative busines
that is also profitable, careful preparation and initiation processes will be needed...