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Survey of South Korean firms operating in North Korea
« on: October 01, 2012, 11:50:09 AM »
by pna

The South Korean government has been conducting a survey of South Korean firms operating in North Korea for possible financial aid to the firms struggling from chilled inter-Korean relations, officials said Monday.

More than 50,000 North Koreans work at 123 South Korean firms at the Kaesong Industrial Complex situated near the border between the countries with South Koreans benefiting from cheap labor costs and North Koreans getting hard currency amid tough international sanctions.

Inter-Korean ties have worsened since the launch of the hard-line Lee Myung-bak administration in 2008 unlike his liberal predecessors, Kim Dae-jung and Roh Moo-hyun who provided massive economic assistance to the North and established the inter-Korean industrial park.

"We are conducting a survey on the financial status of the 123 South Korean firms in the Kaesong Industrial Complex," an official said, asking anonymity. "We expect to conclude the process by mid-October."

Relevant authorities are writing a report on the sales, net profits, debts and other statistics of the firms, the official said.

The survey was prompted by a visit to Kaesong by a group of National Assembly members in February, when the companies in Kaesong complained about difficulties stemming from sour relations between the two Koreas, another official said.

"We may have to consider providing financial aid to the firms in Kaesong if we find them suffering from financial difficulties," the official said.

The Unification Ministry provided financial aid to some firms in Kaesong in December 2008 when they suffered greatly from North Korea's decision to cut off the border between the Koreas due to worsening ties.

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