ID :
50672
Mon, 03/16/2009 - 12:15
Auther :
Shortlink :
https://www.oananews.org//node/50672
The shortlink copeid
Border closure puts Kaesong businesses at risk
(ATTN: RECASTS lead, headline; ADDS para 2-5 with survey results; RESTRUCTURES)
SEOUL, March 15 (Yonhap) -- Nine out of ten South Korean firms operating in a
joint industrial complex in the North will be forced to suspend production if
Pyongyang maintains its closure of the inter-Korean border, a local survey said
Sunday.
North Korea kept the border closed for the third consecutive day Sunday, amid
rising tensions over its planned rocket launch in April.
Cross-border delivery of goods and raw materials has been suspended and hundreds
of South Korean workers remain stranded at the Kaesong industrial complex,
located just north of the border, putting South Korean firms there under mounting
distress.
In a survey of 72 companies operating in Kaesong, 94 percent, or 68 firms, said
they would have to stop production if the closure continues for more than six
days from Sunday due to a limited supply of gas, food and other raw materials, a
local council of firms in the Kaesong complex said.
More than 90 South Korean firms operate in the Kaesong industrial complex, a
major symbol of reconciliation and an outcome of the first inter-Korean summit in
2000. The current closure is the first the Kaesong complex has experienced since
it opened in 2004.
Yoo Chang-keun, CEO of a plastics manufacturing firm in the complex and vice
president of an association of businesses running factories in the border city,
said that if the closure were extended, "an increasing number of companies could
be dealt a heavy blow due to order cancellations amid rising uncertainties."
Production has nearly come to a halt, said Lee Kwang-yong, who manages an
electronics company at the industrial park. His firm is counting on a shipment of
material supplies by Tuesday.
Yoo expressed regret over North Korea's "holding the border city and workers
hostage." He also called for swift action on the part of the Seoul government,
saying it should "ensure the protection of nationals' property."
In response, the Seoul government indicated it will remain supportive of the
companies maintaining access to the complex after the border closure is lifted.
"The government will take the Kaesong companies' situation into close
consideration although national security is equally important," a government
official who declined to be named said in a meeting with company executives.
North Korea sealed off the crossing Friday for the second time in a week to
protest a joint military exercise by South Korea and the United States.
Inter-Korean relations have taken the worst turn in a decade after conservative
Lee Myung-bak took office in Seoul a year ago, vowing to get tough on the
communist state and its ongoing nuclear ambitions.
hayney@yna.co.kr
(END)
SEOUL, March 15 (Yonhap) -- Nine out of ten South Korean firms operating in a
joint industrial complex in the North will be forced to suspend production if
Pyongyang maintains its closure of the inter-Korean border, a local survey said
Sunday.
North Korea kept the border closed for the third consecutive day Sunday, amid
rising tensions over its planned rocket launch in April.
Cross-border delivery of goods and raw materials has been suspended and hundreds
of South Korean workers remain stranded at the Kaesong industrial complex,
located just north of the border, putting South Korean firms there under mounting
distress.
In a survey of 72 companies operating in Kaesong, 94 percent, or 68 firms, said
they would have to stop production if the closure continues for more than six
days from Sunday due to a limited supply of gas, food and other raw materials, a
local council of firms in the Kaesong complex said.
More than 90 South Korean firms operate in the Kaesong industrial complex, a
major symbol of reconciliation and an outcome of the first inter-Korean summit in
2000. The current closure is the first the Kaesong complex has experienced since
it opened in 2004.
Yoo Chang-keun, CEO of a plastics manufacturing firm in the complex and vice
president of an association of businesses running factories in the border city,
said that if the closure were extended, "an increasing number of companies could
be dealt a heavy blow due to order cancellations amid rising uncertainties."
Production has nearly come to a halt, said Lee Kwang-yong, who manages an
electronics company at the industrial park. His firm is counting on a shipment of
material supplies by Tuesday.
Yoo expressed regret over North Korea's "holding the border city and workers
hostage." He also called for swift action on the part of the Seoul government,
saying it should "ensure the protection of nationals' property."
In response, the Seoul government indicated it will remain supportive of the
companies maintaining access to the complex after the border closure is lifted.
"The government will take the Kaesong companies' situation into close
consideration although national security is equally important," a government
official who declined to be named said in a meeting with company executives.
North Korea sealed off the crossing Friday for the second time in a week to
protest a joint military exercise by South Korea and the United States.
Inter-Korean relations have taken the worst turn in a decade after conservative
Lee Myung-bak took office in Seoul a year ago, vowing to get tough on the
communist state and its ongoing nuclear ambitions.
hayney@yna.co.kr
(END)
