South Korea’s Unification Ministry said it will provide an additional 40 billion won ($34 million) in loans for inter-Korean business operators which were hit by soured relations with North Korea.
Last year, 169 companies doing business in the North received 33.6 billion won support from the government.
The move came as Unification Minister Yu Woo-ik met with nine CEOs of companies doing business in North Korea, including Gwak Su-hwan, CEO of Taerim Industrial, other than those operating at the Mount Geumgang resort and the Gaeseong Industrial Complex.
The ministry said the company heads called for more aggressive government support in the aftermath of the so-called “May 24 measures,” which banned any exchanges and cooperation with the North after the sinking of the Cheonan warship in March, 2010.
The 40 billion won will be lent with a 2 percent annual interest rate for a year which can be extended at Yu’s discretion, it said.
By Kim Yoon-mi (
yoonmi@heraldcorp.com)
