Economic cooperation between North and South Korea has started with the declaration of South Korea's 7.7 in 1988 although the partial exchange goods through the 3rd country since early 1970s. In 1992, it was begun in earnest with the business approval of North Korea for an equity joint venture of shirts and bags manufacturing by Daewoo. South Korea has become the North Korea's second largest trade partner since 2000 through the consignment processing and cpoperation and has progressed in economic cooperation throught the Gaesong special economic zone. In this paper, it is examined the problems in the communication, passage, and customs clearance for Gaesong industrial complex and then suggested how to improve the logistics system for trade facilitation between North and South Korea. In the result of this research, we propose that Gaesong industrial complex logistics system should be connected to North Korea inland logistics network. I also suggest a model of Hong Kong-Shenzhen as a benchmarking model of operation system to develop and facilitate exchanges in terms of human and goods etc.
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