The Gaeseong Industrial Complex, alternately spelled Kaesong Industrial Complex, is an industrial park located in Gaeseong North Korea.The Gaeseong industrial complex has been the core business of economic cooperation between South and North Korea for last 10 years, which was designed to prepare reunification of Korean peninsula and balanced development between South and North Korea.The Gaeseong Industrial Complex, true to its original purpose, can be the catalyst for not only further inter-Korean economic cooperation but also going beyond the economic realm to address and resolve political, military and nuclear problems on the peninsula.In order to instill mutual trust, built on the premise that Gaeseongs influence in maintaining a sense of order and stability extends beyond the peninsula, the resolving of Gaeseong industrial complex problems must involve broadening of bilateral contact and substantial changes to the Norths economic system.In addition, the people of South and North Korea have been living in each different political, social, cultural, and economic environment for more than 50 years, so the shock absorber to minimize the impact of the reunification is needed.Through Gaeseong industrial complex, North Korea obtained an opportunity to expand the social overhead capital, and South Korean companies could prepare the chance to obtain the competitive power by using the lower labor costs of North Korea.In order to minimize the impact after reunification, Gaeseong industrial complex should be activated for expanding the share-level of South and North Korea.However, the Gaeseong industrial complex has been affected by conflict and cooperation between South and North Korea.This means that Gaeseong industrial complex represent a relations between two Koreas.This thesis will examine past and present about the Gaeseong industrial complex as well as security and environmental issues.The significance of Gaeseong also will be examined, involving its potential role in economic cooperation between the North and South.In addition, the prospects for the Gaeseong industrial complex and the future of the North Korean economy in connection with South Koreas policy towards the North will be examined.