ID :
53932
Sun, 04/05/2009 - 14:31
Auther :
Shortlink :
https://www.oananews.org//node/53932
The shortlink copeid
Business groups express concern over N. Korea's rocket launch
SEOUL, April 5 (Yonhap) -- South Korea's business groups expressed deep concerns
on Sunday that North Korea's rocket launch would heighten geopolitical risks and
dent the already-slowing economy and inter-Korean economic projects.
"North Korea is raising tensions, throwing cold water on the recovery of the
slumping economy," said Park Dae-sik, an official at the Federation of Korean
Industries, the country's largest business lobby group. "It is feared that the
North's reckless actions might have a negative impact on the financial markets."
The Korea Employers Federation described the launch as a threat to the peace and
stability of Northeast Asia and warned it could deal a blow to regional efforts
to overcome the current economic downturn.
The reactions come after Seoul confirmed that North Korea launched what it claims
is a communications satellite at 11:30 a.m. but said it was too early to call the
launch a success.
The Korean economy shrank 5.1 percent in the fourth quarter from three months
earlier, the worst performance in 11 years, due to tumbling exports and weak
domestic demand. Asia's fourth-largest economy is widely expected to post
negative growth this year, with the government predicting a 2 percent
contraction.
Business groups also expressed concern that the launch would deal a serious blow
to companies operating at a joint industrial complex in the North Korean city of
Kaesong.
"It is feared that South Korean firms operating in the Kaesong complex will face
difficulty in management," the Korea Federation of Small and Medium Businesses
said.
Inter-Korean relations have deteriorated since conservative South Korean
President Lee Myung-bak took office a year ago pledging to get tough on North
Korea.
Tension heightened ahead of the rocket launch as North Korea blocked South Korean
border crossings to the joint complex several times in March in protest against
an annual U.S.-South Korean joint military exercise.
North Korea is also holding a Korean worker detained since late last month for
allegedly criticizing its political system and encouraging a North Korean female
worker to consider defection to the South.
Around 100 small garment and other labor-intensive South Korean firms are
currently operating at the industrial complex, with 39,000 North Korean workers
employed there.
sooyeon@yna.co.kr
(END)
on Sunday that North Korea's rocket launch would heighten geopolitical risks and
dent the already-slowing economy and inter-Korean economic projects.
"North Korea is raising tensions, throwing cold water on the recovery of the
slumping economy," said Park Dae-sik, an official at the Federation of Korean
Industries, the country's largest business lobby group. "It is feared that the
North's reckless actions might have a negative impact on the financial markets."
The Korea Employers Federation described the launch as a threat to the peace and
stability of Northeast Asia and warned it could deal a blow to regional efforts
to overcome the current economic downturn.
The reactions come after Seoul confirmed that North Korea launched what it claims
is a communications satellite at 11:30 a.m. but said it was too early to call the
launch a success.
The Korean economy shrank 5.1 percent in the fourth quarter from three months
earlier, the worst performance in 11 years, due to tumbling exports and weak
domestic demand. Asia's fourth-largest economy is widely expected to post
negative growth this year, with the government predicting a 2 percent
contraction.
Business groups also expressed concern that the launch would deal a serious blow
to companies operating at a joint industrial complex in the North Korean city of
Kaesong.
"It is feared that South Korean firms operating in the Kaesong complex will face
difficulty in management," the Korea Federation of Small and Medium Businesses
said.
Inter-Korean relations have deteriorated since conservative South Korean
President Lee Myung-bak took office a year ago pledging to get tough on North
Korea.
Tension heightened ahead of the rocket launch as North Korea blocked South Korean
border crossings to the joint complex several times in March in protest against
an annual U.S.-South Korean joint military exercise.
North Korea is also holding a Korean worker detained since late last month for
allegedly criticizing its political system and encouraging a North Korean female
worker to consider defection to the South.
Around 100 small garment and other labor-intensive South Korean firms are
currently operating at the industrial complex, with 39,000 North Korean workers
employed there.
sooyeon@yna.co.kr
(END)
