North Korea suddenly hikes taxes for businesses in Kaesong, threatens to make hike retroactive for up to 8 years

UPDATE (21 OCT): The Times had an article today on rising tensions between North Korea and China due to similar issues – North Korea’s mistreatment of outside firms doing business within the country. Hardly a surprise, and gets to the point people constantly make about getting China to “do something about North Korea.” In the end, the North doesn’t listen to the Chinese much either, and for the Chinese to bring them to heel would require Beijing to utilize the type of extreme measures (e.g. halt in oil shipments) they’ve rarely proven willing to employ.

I get it that the South’s government wants to reduce the eventual, astronomical costs of reunifying with the North by amortizing those costs over the longest period possible, but as a business owner, why on earth would you risk investing in the North?

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