Invest KOREA

According to Yonhap News,

(SEOUL = Yonhap News) A wireless scanning system that would facilitate the cross-border movement of people and materials to and from the inter-Korean factory park in Kaesong is expected to be set up in early 2014, an official source said Monday.

The unification ministry official said work to set up the system should begin next week, with the aim of getting it operational by the end of the year. However, the radio frequency identification tag (RFID) system will probably be in working order early next year, taking into account possible delays, the official added.

The system would replace the current paper manifests used at the Kaesong Industrial Complex and would allow people and materials to enter factory park by scanning identification cards.

The assessment comes after a six-member technical team checked conditions for setting up of the RFID system at the complex on Monday. The engineers plan to go back to Kaesong on Thursday to examine how to go about setting up the sensors and related equipment.

"The second visit will permit a date to be set on when construction will begin, and what equipment and materials will be needed," said the source, who declined to be identified.

In addition to the RFID system, Seoul and Pyongyang are expected to hold talks later in the week to discuss how to proceed with the issue of Internet connectivity and customs inspections for the industrial zone.

The latest talks come after the two sides agreed last Friday to move forward on ways to develop the complex so as to make it more competitive.

Setting up an RFID system is an important first step to raise the international competitiveness of the industrial complex. Wireless tags can address a primary grievance of South Korean companies operating in Kaesong, which had to follow strict rules governing the movement to and from the complex. Once the system is set up, it could make it much easier for people to travel to Kaesong.

The industrial complex first started churning out goods in late 2004, and is home to 123 South Korean factories. The complex was closed for over five months starting in early April amid a spike in tensions on the Korean Peninsula.