South Korea said Tuesday that it will give 63 billion won ($57.6 million) worth of low-interest loans to companies that pulled out of the inter-Korean industrial complex, as part of its efforts to limit fallouts to the business sector.

The Ministry of Unification said the money will come from a special economic cooperation fund. Interest has been set at just 2 percent, which is lower than the key rate of 2.75 percent set by the Bank of Korea.

“This is a considerable favor to companies,” a ministry official said. He said that each company that applies can receive up to 1 billion won in a lump sum, although this is dependent on total invested in Gaeseong.

All operations at the complex came to a halt early last month after the North withdrew all its 53,000 workers to protest South Korean provocations against the dignity of its leadership. This was followed by Seoul pulling its remaining personnel last Friday.

He said the Export-Import Bank of Korea will be tasked with providing the loans with companies required to submit applications by Aug. 5.

There has been criticism that Seoul has not done enough, but it has remained faithful to its pledge to do what it can to limit damages incurred, push forward support in an aggressive manner within the confines of the law and offer speedy assistance, the official said.

He stressed that giving free aid, as suggested by some, is impossible because there is no legal backing for such a step, and would be unfair to other companies facing hard times.

The latest announcement is a follow-up to Seoul offering 300 billion won in low interest loans last week, along with ongoing efforts to include a 100 billion won support plan in the extra budget talks underway at the National Assembly.

The official, meanwhile, said the government will take further steps in the future to help companies that have factories at Gaeseong cope with production suspension. (Yonhap News)