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1、www.hbr.orgHBRCASESTUDYANDCOMMENTARYShouldParksetupSettingUpShopinashopinKaesong?PoliticalHotSpotTheexpertsrespond.byPatrickChun,JohnColeman,andNabilEl-Hage?ReprintR1010PInaNorthKoreaneconomiczone,thecostsoflaborarelowandthebenefitsofengagementarehigh.Butwhat’sthehumantoll?HBRC
2、ASESTUDYSettingUpShopinaPoliticalHotSpotbyPatrickChun,JohnColeman,andNabilEl-Hage“Youknow,thisisn’tjustbusinessasusual...”prosperity”;indeed,itrepresentedthelargestParkJeehee,theCEOofthewatchbandman-areaofeconomiccooperationbetweenthetwoufacturerTimepiece,listenedcarefullyasana
3、tions.Ithadalreadyattractedmorethan100guidetalkedherandhersmallexecutiveteamcompanies,withtensofthousandsofemployees.throughthedetailsoftheKaesongIndustrialSouthKoreansservedpredominantlyasmanag-Complex(KIC),aSouthKoreanmanufacturingers,andNorthKoreansprovidedmostoftheun-zonein
4、NorthKorea.skilledandsemiskilledlabor.“Asyoucansee,thisisasophisticatedopera-Parkhadnotgivenmuchthoughttodoingtion,”heboasted.Pointingtotheblazer-cladbusinessintheKICuntilafellowCEO,whohadworkersexitingseveralfactories,headded,“ThemovedhismanufacturingplantthereintheKICisaphysi
5、calexampleoftheprosperityKo-pastyear,encouragedhertovisit.Governmentreanscancreatewhenpeacefullyworkingto-of?cialslookingtodrawmorecompaniestothegether.”complexhadsetupthetrip.AndnowsheandAsaSouthKorean,ParkwasmorethanalittleherteamwerenorthoftheDemilitarizedZoneskeptical:She’d
6、grownupfearingthegovern-inoneofKorea’soldestcities,Kaesong—notmentintheNorth.Butsheunderstoodwhyeven70kilometersfromSeoul,althoughitfeltHyundaiAsan,adivisionoftheSouthKoreanaworldaway.HyundaiGroup,hadintheearly2000sledef-Thepreviousday,despiteconstantchaperon-fortstodeveloptheK
7、IC.Thecomplex,sup-ing,thegrouphadglimpsedsomeoftheabjectportedbybothKoreangovernments,wasin-povertyoftheNorth—sightsthathadheight-tendedtopromote“coexistenceandco-enedPark’sdoubts.ButasshetookintheOPYRIGHT?2010HARVARDBUSINESSSCHOOLPUBLISHINGCORPORATION.ALLRIGHTSRESERVED.CHBR’sc
8、ases,whichare?ctional,presentcommonmanagerialdilemmasa
