This paper examines the interactions of sovereignty and political economy that shape North Korea's Kaesong Industrial Complex (KIC# an economic zone jointly operated by North and South Korea. Drawing on contemporary literatures concerning sovereignty, territoriality, and sites of political economic experimentation in East Asia, we argue that the KIC represents an experimental form of territoriality: one that is particularly volatile due to its unique geopolitical location where interaction among the various actors that compose it periodically shuts down or threatens to suspend the project. This volatility cannot be reduced to the structure of the North Korean regime alone, however. Rather, it must be situated within the continuation of a framework of enmity on the Korean peninsula as well as the ethical and political conundrums raised by the largely capitalist nature of the KIC as a form of inter-Korean economic cooperation. #C) 2015 Elsevier Ltd. All rights reserved.