Companies that withdrew from the inter-Korean industrial park in Gaeseong urged the Seoul government on Saturday to come up with plans to protect the products and raw materials left in the enclave and help them get back on their feet.

They also called on the government to allow them to visit the North on Tuesday and continue trying to hold talks with the North.

“The companies are perplexed at the government’s abrupt decision to have all the (South Korean) staff pull out (from Gaeseong), and we are concerned this may lead to a shutdown of the industrial complex,” said Han Jae-kwon, head of the association of the 123 South Korean firms operating in the North’s border town.

“It is regrettable that the government’s decision was made without prior consultation or notice, but we will accept it.”

The companies expect their buyers to start filing damage claims.

“Buyers had a bit of hope for normalization of the complex before the government’s announcement and they waited because they thought they could at least bring back the raw materials,” said Yoo Chang-geun, vice president of the association.

“But the minute everyone moves out of Gaeseong, buyers will start filing claims.”

One of the companies received a damage claim bigger than its annual revenue, according to another executive of the association.

“A company usually has three or four buyers. If they all file claims, (the firm) won’t be able to survive,” he said.

Moon Chang-seop, president of footwear maker Samduk Tongsang, said thousands of suppliers will also be affected.

“Some 5,000 companies that supply materials to us can go bankrupt one after another,” Moon said.

“If the damage spreads to the partner firms, tens of thousands of people could lose their jobs.”

The association is currently looking into the scale of damage done to member firms due to termination of supply contracts and claims from buyers, and plans to announce the figures soon.

The national agency for small and medium-sized firms said on Sunday it would begin receiving applications from companies that withdrew from Gaeseong for emergency funds to stabilize business and for loan deferment.

As part of government measures to reduce the damage, the Small and Medium Business Administration will lend emergency funds of up to 1 billion won ($900,000) per company and allow the firms to pay back government loans up to a year and half later.

The agency will also put a request through the National Council for Corporate Partnership to ask the large companies to maintain business with the small firms that supplied products from Gaeseong.

By Kim So-hyun (sophie@heraldcorp.com)