South Korean Firms Demand More Compensation as Hopes for North Korea Business Fade

South Korean firms involved in inter-Korean economic projects are calling for additional compensation and debt relief as they prepare to shut down their operations. The Association of Inter-Korean Economic Cooperation Organizations has urged the government to write off debts and provide compensation for investments frozen in North Korea due to deteriorating relations.

Choi Yo-sik, the association's head, highlighted the ongoing impacts of strained inter-Korean relations, stating that investment assets in North Korea have been left untouched since 2010. Out of nearly a thousand companies that once engaged in cross-border business, only 385 remain operational, with many seeking support to wind down their activities.

Jung Tae-won, president of a clothing manufacturer, noted that outstanding debts are a significant barrier to closing businesses. In 2018, the government compensated some companies at 45% of their investment, but many believe the actual recovery was closer to 10%. The association estimates that around 60 billion won (approximately $44.2 million) would be needed for adequate compensation.

The situation has led to protests, including a demonstration where members had their heads shaved to draw attention to their plight. The call for compensation reflects a broader concern about the future of inter-Korean economic cooperation, which appears increasingly bleak.