South Korea announced Sunday that it would channel some 330 billion won ($267 million) into a government fund to compensate companies forced out of a joint factory park in North Korea’s border city of Gaesong.
“In order to minimize economic losses suffered by the companies, we reached a consensus on the amount of compensation fund to make the payment as soon as possible,” an official from the Unification Ministry told reporters after the meeting to discuss the plan to compensate the hard-hit businesses.
Prime Minister Hwang Kyo-ahn browses through items during a sale promoting Gaeseong industrial park products at Lotte Department Store in Seoul on Sunday. Yonhap
Highlighting that the procedure would be simple, the official said it would start receiving compensation requests from Monday and issue temporary compensation from Thursday. The formal compensation will be handed out starting March 7.
The decision came after the government shut down the cross-border industrial complex following the North’s Jan. 6 nuclear test and Feb. 7 long-range rocket launch.
By Yeo Jun-suk (email@example.com