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Gov't focused on safe return from Gaesong, compensating losses

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The South Korean government is focused on the safe return of its citizens from the Gaesong Industrial Complex and doing what it can to compensate the losses that companies incur, a government official said Sunday.

The complex that first started production in late 2004, effectively halted operations on April 9 after the North, citing South Korean provocations, withdrew all of its laborers. Seoul demanded talks resolve outstanding differences but decided to recall its own workers on Friday after getting no reply for its dialogue request.

"The most pressing issue at the moment is to ensure all remaining citizens return home safely," the official from the unification ministry, who declined to be identified, said.

He said that the return of 126 workers from the border town, just north of the demilitarized zone, on Saturday, left just 50 people at the Gaesong park.

"All employees of the 123 companies that have factories in Gaesong have returned home, with those remaining being personnel sent to the complex by KT, Korea Land and Housing Corp., Korea Electric Power Corp. and members of the Gaesong Industrial District Management Committee," he said.

He said those remaining will all be pulled out on Monday after they tend to last minute checks to make sure the infrastructure facilities at the industrial park have been secured.

"The exact time of their departure has yet to be planned since consultation is underway with the North Korean side," he said.

The official, meanwhile, said that every effort will be made to reduce the fallout from withdrawing the workers.

There have been estimates that losses incurred by businesses will reach 1 trillion won ($900 million).

Related to helping companies, Seoul said it will set up a special organization dedicated to assisting businesses forced to leave Gaesong, with many speculating the government will announce fresh measures to alleviate hardships.

The government already announced on Wednesday measures to provide adequate liquidity to Gaesong companies.

Businesses that have pulled out of Gaesong, meanwhile, asked Seoul on Saturday to take all necessary measures to ensure the safety of facilities left behind, continue to engage the North in talks for the reopening of the Gaesong complex and to grant permission for representatives from the complex who want to visit the North on Tuesday so they can try to meet with North Korean officials.