Seoul to aid companies shut out of Kaesong

Written By Unknown on Kamis, 02 Mei 2013 | 22.34

SOUTH Korea's government will provide more than $US270 million ($A263.88 million) in emergency loans to help companies affected by the shutdown of a jointly run factory park in North Korea.

The finance ministry said on Thursday the 300 billion won ($A266.81 million) in relief funds will help cover debts and operating costs of about 120 South Korean companies that were forced early last month to halt production at factories in the Kaesong industrial complex amid high tensions on the Korean peninsula.

Additional financial support will be provided once the parliament approves a bill for an extra budget this year that is part of a broader stimulus plan for South Korea's economy, a joint statement from government ministries said.

Pyongyang has blocked the entry of South Korean vehicles and personnel to the jointly run factory park since April 3. The move came as North Korea issued a daily torrent of threats aimed at US-South Korean military drills and UN sanctions over Pyongyang's February nuclear test.

Six days later, it pulled out its 53,000 North Korean workers, halting the factories that had run on cheap labour from North Korea, and capital and technology from the South.

One of the companies that operated at Kaesong said the funds will help ease the burden for businesses that are facing a financial crunch as they have to make payments to contractors and employees. But the loans do not cover the financial losses that would be suffered if South Korean business owners cannot return to Kaesong where they constructed factories, installed production lines and made other investments.

"It will give relief," said Park Yun-kyu, chief executive of a South Korean apparel company that used to employ 700 North Koreans in Kaesong.

South Korea's government offered insurance to companies at Kaesong through a state-owned bank, which compensates up to 7 billion won in the event of shutdown lasting more than one month. However, 27 companies out of 123 did not take the insurance for various reasons, including questions about its usefulness and how the compensation is determined.

Park said he was worried that he would lose a 2 billion won investment that he made after signing the insurance policy as the additional spending is not covered by it.


Anda sedang membaca artikel tentang

Seoul to aid companies shut out of Kaesong

Dengan url

http://pilkadaseo.blogspot.com/2013/05/seoul-to-aid-companies-shut-out-of.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

Seoul to aid companies shut out of Kaesong

namun jangan lupa untuk meletakkan link

Seoul to aid companies shut out of Kaesong

sebagai sumbernya

0 komentar:

Posting Komentar

techieblogger.com Techie Blogger Techie Blogger