S. Korean firms demand more compensation as hopes for N. Korea business fade

South Korean firms involved in inter-Korean economic ventures are demanding greater compensation and debt relief, citing the dwindling prospects of normalizing relations with North Korea and the cessation of economic projects. The Association of Inter-Korean Economic Cooperation Organizations has urged the government to absolve their debts and provide additional compensation for frozen investment assets within the North.

This call for higher relief stems from the group's perception that there is no longer a realistic possibility of reestablishing inter-Korean ties, let alone resuming economic endeavours, due to the strained relations between Seoul and Pyongyang. Choi Yo-sik, the head of the association, made these remarks during a press conference at the government complex in Seoul.

He highlighted that many investment assets left behind in North Korea continue to remain untouched, having been frozen since May 24, 2010, when inter-Korean exchanges were halted following the sinking of a South Korean warship by the North. Out of the approximately one thousand South Korean companies previously engaged in cross-border activities, only around 385 continue to operate.

A significant number, estimated between 50-60, have joined the ranks of those planning to fully withdraw from the business.