Last week, South Korea responded to North Korea’s January nuclear test and February satellite launch by announcing that it would suspend operations at the Kaesong Industrial Complex (KIC), the last remaining site of economic cooperation between the two Koreas. A number of Korea watchers have criticized the decision, calling it short-sighted and counter-productive.

These arguments are wrong. Closing Kaesong is the right call, for several reasons.

The most significant is that Kaesong provides income directly to the North Korean regime’s inner circle, rather than contributing positively to the broader North Korean economy. Because of this, projects like Kaesong don’t undermine or transform the Kim regime. They prolong and solidify its rule. It’s hard to see what benefits Kaesong is producing that could be worth that price….