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Gov't plans to bail out companies from Kaesong Industrial Complex

Gov't plans to bail out companies from Kaesong Industrial Complex

Posted April. 25, 2016 07:13,   

Updated April. 25, 2016 07:19

한국어

It is said that the South Korean government plans to bail out with its budget the current assets that South Korean companies left behind in the Kaesong Industrial Complex and fixed assets of companies who haven’t joined economic cooperation insurance. As the government stopped the operation of the complex in February and Pyongyang closed down the complex, those companies had to leave behind substantial amount of current assets such as materials and finished products. Unfortunately, companies that didn't subscribe to economic cooperation insurance have not been bailed out for their fixed assets.

“It’s the ministry’s plan to bail out those firms who have affected by their current assets and who haven’t had insurance policy,” sources from the Ministry of Unification said on Sunday. It means that governmental budgets such as Inter-Korean Cooperation Fund would be injected for bailout. The emergency planning committee for the complex revealed that estimated damages amount to some 246.4 billion Korean won (approx. 214 million U.S. dollars) from current assets left behind by 120 business entities. In principle, only the ones with insurance of inter-Korean trade are to be bailed out. No ones, however, have the insurance policies, which has caused the government and companies to place the blame on each other.

The South Korean government plans to provide help for “inevitably direct damage” and will reveal the specific aid amount as a comprehensive bailout measure sometime next month.



윤완준기자 zeitung@donga.com