S. Korean firms demand more compensation as hopes for N. Korea business fade
South Korean companies involved in inter-Korean economic projects on Tuesday called for additional compensation and debt write-offs, saying they want to close their businesses for good. The Association of Inter-Korean Economic Cooperation Organizations demanded the government write off their debts and offer further compensation for investment assets frozen in the North. The demand comes as they…
South Korean firms operating inter-Korean economic ventures have urged the government for greater compensation and debt relief, declaring plans to wind down their operations altogether. The Association of Inter-Korean Economic Cooperation Organizations has pressed the government to write off their debts and provide additional compensation for assets frozen in the North.
This request emerges as they now perceive no prospect of normalizing relations between Seoul and Pyongyang, or resuming economic initiatives, due to the deteriorating ties. Choi Yo-sik, the association's leader, stated at a news conference, "The repercussions of the altered inter-Korean relations remain, with investment assets left dormant in North Korea since May 24, 2010, following the North's sinking of a South Korean warship."
Out of approximately a thousand South Korean companies previously engaged in cross-border businesses, 385 continue to function. Around 50-60 of these companies have joined the initiative to discontinue their economic involvement.
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