Hyunjin Precision Industry left 2B won in watch molds when Kaesong closed

Hyunjin Precision Industry was a South Korean company that manufactured commemorative watches, producing watch molds and precision components. The company was one of 124 South Korean firms operating at the Kaesong Industrial Complex, an inter-Korean industrial park located just north of the border in North Korea. The complex offered low-cost labor, land, and utilities that made it attractive for South Korean manufacturers, particularly in labor-intensive precision industries.

On February 10, 2016, South Korea announced the suspension of operations at Kaesong in response to North Korea's nuclear test and long-range rocket launch. North Korea responded by expelling all South Korean workers and freezing all South Korean assets and equipment at the complex. Companies were given essentially no time to retrieve their equipment, raw materials, or finished goods.

Hyunjin Precision Industry had over 2 billion won in watch molds trapped inside the complex. An additional 1 billion won in raw materials that had not been individually declared to customs was excluded from government compensation. When the company attempted to restart in South Korea, the cost of purchasing equivalent machinery was more than 10 times higher than in Kaesong, making it impossible to proceed. The company has remained in suspended operations since, with its CEO waiting to see whether the complex will reopen.