By Chung Min-uck
The government said Wednesday it will allow companies with factories at the inter-Korean Gaeseong Industrial Complex (GIC) to delay payment of loans due within the next six months.
"The due date for loans taken out from the state-run inter-Korean cooperation fund will automatically be pushed back six months," said Park Soo-jin, vice-spokeswoman of the Ministry of Unification that handles inter-Korean affairs, Wednesday, during a regular briefing. "The amount equals to 46 percent of all loans provided by the fund."
According to the ministry, 28 out of the total 123 companies, which have taken out loans totaling 9.7 billion won ($ 9 million), will benefit from this measure.
Up to date, companies that have factories in North Korea's border city of Gaeseong altogether borrowed about 21.3 billion won ($ 19.9 million) from the cooperation fund.
The move by the government is aimed at easing the pressure on GIC companies strapped for cash in the face of declined production as a consequence of the five-month hiatus of operations because of heightened tension on the Korean Peninsula earlier this year.
Meanwhile, on the same day, working-level officials from the South and North met to discuss ways of better protecting investment at the GIC and promote its internationalization.
The meeting of two sub-panels of the Gaeseong joint management committee were held in the North's border city, the ministry said.
"The two sub-panel meetings, the first since Sept. 26, are designed to bolster the overall global competitiveness of the GIC," a ministry official said.
There are altogether two sub-panels under the larger GIC joint management committee that has taken charge of running the complex since operations resumed in September.
During the investment protection panel meeting, the two sides reportedly discussed the establishment of an official dispute settlement regime coupled with how to attract more foreign investors into the GIC.
Previously, the two Koreas agreed to hold an IR session on Oct. 31 but it was canceled when little headway was made in a separate sub-panel meeting to change rules dealing with travel, communication and customs at the joint complex in North Korea.
The ministry also said another meeting to discuss the rights and safety of South Koreans working in Gaeseong will be held today.
But the date for the travel and communication meeting has yet to be fixed because of its sensitivity.
As opposed to South Korea, the North maintains close control of the movement of people and materials from Gaeseong and the outside world. It also prohibits Internet connectivity and the use of mobile phones.
Observers say, unless, the two sides find common ground in the travel and communication issue, it would be difficult to improve working conditions at the GIC and attract foreign investment.
The government said Wednesday it will allow companies with factories at the inter-Korean Gaeseong Industrial Complex (GIC) to delay payment of loans due within the next six months.
"The due date for loans taken out from the state-run inter-Korean cooperation fund will automatically be pushed back six months," said Park Soo-jin, vice-spokeswoman of the Ministry of Unification that handles inter-Korean affairs, Wednesday, during a regular briefing. "The amount equals to 46 percent of all loans provided by the fund."
According to the ministry, 28 out of the total 123 companies, which have taken out loans totaling 9.7 billion won ($ 9 million), will benefit from this measure.
Up to date, companies that have factories in North Korea's border city of Gaeseong altogether borrowed about 21.3 billion won ($ 19.9 million) from the cooperation fund.
The move by the government is aimed at easing the pressure on GIC companies strapped for cash in the face of declined production as a consequence of the five-month hiatus of operations because of heightened tension on the Korean Peninsula earlier this year.
Meanwhile, on the same day, working-level officials from the South and North met to discuss ways of better protecting investment at the GIC and promote its internationalization.
The meeting of two sub-panels of the Gaeseong joint management committee were held in the North's border city, the ministry said.
"The two sub-panel meetings, the first since Sept. 26, are designed to bolster the overall global competitiveness of the GIC," a ministry official said.
There are altogether two sub-panels under the larger GIC joint management committee that has taken charge of running the complex since operations resumed in September.
During the investment protection panel meeting, the two sides reportedly discussed the establishment of an official dispute settlement regime coupled with how to attract more foreign investors into the GIC.
Previously, the two Koreas agreed to hold an IR session on Oct. 31 but it was canceled when little headway was made in a separate sub-panel meeting to change rules dealing with travel, communication and customs at the joint complex in North Korea.
The ministry also said another meeting to discuss the rights and safety of South Koreans working in Gaeseong will be held today.
But the date for the travel and communication meeting has yet to be fixed because of its sensitivity.
As opposed to South Korea, the North maintains close control of the movement of people and materials from Gaeseong and the outside world. It also prohibits Internet connectivity and the use of mobile phones.
Observers say, unless, the two sides find common ground in the travel and communication issue, it would be difficult to improve working conditions at the GIC and attract foreign investment.
