S. Korean govt. to provide US$273 mil. in aid to firms with Gaeseong factories

S. Korean govt. to provide US$273 mil. in aid to firms with Gaeseong factories


The inter-Korean industrial complex in Gaeseong
has turned into a multi-billion-dollar mess for South Korean firms shut out of the factory
park. as the companies affected are reeling. To lend support, the South Korean government
unveiled its first aid package for the businesses on this Thursday. Our unificiation ministry correspondent Hwang
Sung-hee has more on the story. The South Korean government announced on Thursday its
plan to provide low-interest loans for South Korean companies operating factories at the
Gaeseong Industrial Complex. “The government’s task force team has agreed
to promptly provide a total of 300-billion won, roughly 273-million U.S. dollars, in
emergency relief fund for companies at Gaeseong to cover immediate liquidity problems. The money will come from a variety of sources
like the inter-Korean cooperation fund as well as the small and medium enterprise support
fund. along with an interest rate of two percent. The companies will be able to apply for the
loans starting next Monday. Experts estimate the companies could lose
up to 5-point-4 billion dollars. in the event of a complete shutdown. This includes the money that went into building
the complex as well as various losses incurred from the sudden halt in production. Seoul’s Ministry of Unification said it’s
still figuring out just how much money the firms have lost due to the suspension. and
said the research will likely be wrapped up in the coming weeks. “We think we will be able to conduct comprehensive
research on the companies’ losses and have it evaluated by a group of experts within
one month.” In addition to the government-level special
loans, three local banks are planning to provide another 273-million dollars to the companies. “Thursday’s measures are the first of the
government’s ongoing efforts to assist the 1-hundred-23 companies. and the unification
ministry says it will come up with additional forms of support in the near future. to meet
the needs of the businesses. Hwang Sung-hee, Arirang News.”

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