South Korea will provide 300 billion won ($273 million) in emergency relief funds to local companies that have been forced to halt operations at the inter-Korean industrial complex in Gaeseong, the government said Thursday.
The money aims to help businesses cover immediate liquidity problems caused by the suspension of operations at the Gaeseong Industrial Complex, the Ministry of Unification said.
The total includes 63 billion won in low interest loans provided by the inter-Korea cooperation fund, 100 billion won from the small and medium enterprise support fund, 100 billion won from the Korea Finance Corporation and 36.9 billion won provided by the state credit guarantee fund.
Three local banks are in the process of extending another 300 billion won in assistance to companies hit by the suspension of the factory complex.
The ministry said the latest support measure is the first of ongoing efforts to give some relief to the 123 companies with additional support to be offered in the future when the extent of losses is ascertained.
The companies were forced to halt operations on April 9, when Pyongyang ordered its 53,000 workers not to report to work. Seoul countered by announcing last Friday that it will withdraw all personnel from Gaeseong, which first started churning out products in late 2004. (Yonhap news)
