The Kaesong Industrial Complex could help revive North Korea`s moribund economy and change its overall economic system while serving as a new growth engine for the South Korean economy. In short, it could offer economic synergy as a model of mutually beneficial cooperation. The resident enterprises should secure strong competitiveness for further growth with the two sides cooperating to resolve major pending problems and establish long-term development plans. At present, 48,000 North Korean workers are employed by 123 firms, about 25,000short of demand. South Korean firms do not have independent labor management rights. The KIC should have systematic regulations to guarantee the independent labor management by South Korean enterprises in the joint industrial area. The whole procedures for the entry and exit of personnel and goods need to be simplified with a domestic framework instead of the current international protocols. The South`s KIC Management Committee should also be able to provide autonomous support for enterprises in terms of finance, management and technological consulting, training of workers and sales promotion through legal and systemic improvements. Efforts are needed to explore broader domestic markets for KIC goods as well as their export to Southeast Asia where trade barriers are less visible. it is crucial to introduce a “special rule of origin” in the Korea-U.S. FTA to have KIC products labeled “Made in Korea” with the KIC classified as an outward processing zone. Now is the time for the Northern and Southern authorities to search for the best way to promote bilateral economic cooperation from the vibrant scenes of the Kaesong Industrial Complex.