(VOVworld)- The South Korean government suspended activities at the Kaesong Industrial Complex in North Korea, a jointly operated industrial zone, after Pyongyang’s nuclear test and long-range rocket launch this month.
South Korean companies suffer after Kaesong closure
But the move backfired as a manufacturing association of more than a hundred South Korean companies is now pushing for greater compensation for hundreds of millions of dollars in losses. Jeong Gi-seob, chairman of the Corporate Association of Kaesong Industrial Complex says the Corporate Association of Kaesong Industrial Complex represents 123 small and midsize manufacturing countries that were affected by the closure. The group said initial losses were estimated at around $644 million. Although the South Korean government vowed to offer financial support and compensation for businesses hurt by the move, the association said insurance covered only about $220 million in losses.
Seoul announced suspended operations at the Kaesong on Feb 10 to protest Pyongyang’s 4th launch of a long range Kwangmyongsong rocket. Pyongyang froze all assets of the Kaesong companies, deported the remaining staff and took military control over the site.
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