UPDATE (3 April): The North closed entry to Kaesong today for South Koreans, but allowed those present in the complex to either remain in the North or head home to the South. Citing business and production concerns, only 33 of 446 South Korean workers in the complex actually came South, with the rest remaining behind to tend to their work or business interests. Posing the somewhat interesting question – given a choice, would you elect to stay in North Korea right now for your employer or business?
Previous closures have been short-lived, with few repercussions for those remaining behind, those who left, or the businesses located in the zone. Time will tell if this closure ends the same. Either way however, today’s closure signals a further heightening of tensions and worsening of inter-Korean relations.
UPDATE (1 April): The North actually threatened to close the Kaesong complex over the weekend, but most doubt they will follow through on the threat. If the North’s leadership is under the illusion that shutting the facility will hurt the South worse than the North they might be tempted, but short of that level of cluelessness, the North is unlikely to close such a prime hard currency source.
UPDATE (28 March): Reuters catching on to the idea of Kaesong as an indicator of the true level of tension on the Korean peninsula: Despite threats, North Korea keeps border factories open.
Every time tensions rise on the Korean peninsula, people start asking what’s going to happen next. Is there going to be a war? Will tensions cool? Will the North conduct an additional rocket or nuke test? Will there be another cyberattack or similar provocation? While no one outside of the North’s inner circle (now including Dennis Rodman?) can say for sure, there are a few indicators.