Inter-Korean businesses seek 60 billion won liquidation settlement

  • Inter-Korean businesses urged the government to write off debt and provide additional liquidation compensation.
  • The association estimates that roughly 60 billion Korean won is needed for settlements.
  • About 385 of roughly 1,000 former cross-border businesses remain in operation, it said.

South Korean companies involved in inter-Korean economic cooperation are urging the government to provide roughly 60 billion Korean won in additional compensation and debt write-offs so they can permanently close businesses disrupted by the 5·24 sanctions. The Association of Inter-Korean Economic Cooperation Organizations says investment assets have remained inaccessible since exchanges were frozen in 2010 after North Korea sank a South Korean warship. About 385 of roughly 1,000 companies once involved in cross-border business remain in operation, while around 50–60 are seeking further support to wind down. The companies say the 2018 compensation program, which covered investment assets at 45% of recognized value, often translated into about 10% of original investments because documentation gaps reduced eligible amounts. They accepted the earlier settlement while expecting inter-Korean projects to resume, but now say North Korea's hostile two-state policy has made renewed cooperation unrealistic. The Ministry of Unification is reviewing operating support of 20 million to 30 million Korean won per company and partial loan settlements, although budget constraints have delayed progress.

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