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Companies Concerned About Biz Disruption

Written: 2009-04-22 16:51:10Updated: 0000-00-00 00:00:00

Companies Concerned About Biz Disruption

Companies operating in the Gaeseong Industrial Complex are concerned that their business will be disrupted following North Korea’s remarks that it will reconsider the benefits it has given to South Korea for projects at the complex.

The Gaeseong Industrial Complex Tenant Companies Association said the North’s demand that the South pay land-use fees six years earlier than agreed on the initial contracts is a violation of previous agreements.

Under the current contracts, South Korea is to pay the land-use fees starting in 2014.

They also said the North’s demand for increased wages for North Korean workers in the complex will lower the competitive edge the complex has by benefiting from low labor costs.

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