The purpose of this paper is to analyze the mechanism of the physical environment of North Korea’s Kaesong Industrial District in terms of landscape management. It also assesses how such a mechanism has been created and the effectiveness of the results. As a research method, we compared the architectural design and landscape management guidelines of fifteen companies in the initial complex of Kaesong Industrial District. The results follow. First, advanced spatial planning, such as landscape management, has contributed greatly to preparing the physical environment of Kaesong Industrial District to be a future-oriented economic special zone. Second, the landscape management methods that do not apply to the manufacturing complex were first transplanted to the North Korean Kaesong Industrial District ten years before they were adopted in South Korea. Third, officials of the two Koreas have generally recognized the necessity and effectiveness of landscape management. Fourth, the necessity of landscape management methods further developed at Kaesong Industrial District, as well as the means of implementation, will continue to be a positive precedent for future inter-Korean economic cooperation projects. However, some problems were found in the process of formulating and executing the landscape management plan. First, despite the fact that it is a national project in which the central government of directly intervenes, it is an impromptu progress without preparation of each special field, including landscape plan. Second, although Kaesong Industrial District is an inter-Korean economic cooperation project, North and South Korea have never been cooperative in specialty areas such as landscape management.