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Friday, November 10, 2017, 11:19
ROK to fund firms in losses after inter-Korean factory zone shutdown
By Xinhua
Friday, November 10, 2017, 11:19 By Xinhua

This picture taken on Feb 12, 2017 shows barricades set on the road leading to the Democratic People's Republic of Korea's Kaesong joint industrial complex at a Republic of Korea military checkpoint in the border city of Paju near the Demilitarized Zone (DMZ) dividing the two Koreas. (JUNG YEON-JE / AFP)

SEOUL – The Republic of Korea’s (ROK’s) unification ministry said Friday that it will offer financial assistance to local companies suffering losses from their investment in the inter-Korean factory zone, which has been shut down after the Democratic People's Republic of Korea (DPRK)'s nuclear test last year.

It has also planned to compensate firms sustaining losses from investment in other inter-Korean economic cooperation projects, which would be the first such measure taken by ROK government.

The government has provided 517.3 billion won (US$463 million) in compensation to Kaesong companies, which estimated the losses reaching over 1.5 trillion won

The ministry said in a statement that the measure would be taken for the state to take responsibility for companies going through difficulties caused by the government's abrupt policy direction.

ROK government unilaterally decided in February last year to shut down the Kaesong Industrial Complex in the DPRK's border town of Kaesong following Pyongyang's fourth nuclear test and long-range missile launch.

The government has provided 517.3 billion won (US$463 million) in compensation to Kaesong companies, which estimated the losses reaching over 1.5 trillion won.

After conducting due diligence, the government estimated the losses at 786.1 billion won.

READ MORE: ROK to mull resumption of inter-Korean industrial park

The government will offer additional 66 billion won to the Kaesong companies. The ministry said the fresh assistance will increase the total compensation to 583.3 billion won, or 74.2 percent of the losses it estimated.

The first financial assistance will be offered by the government to local companies suffering losses from investment in other inter-Korean cooperation project.

The compensation will be provided early next year after conducting due diligence.

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