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‘Biz Environment Becoming Bleak at Gaeseong’

Written: 2010-05-12 13:16:11Updated: 2010-05-12 14:05:48

‘Biz Environment Becoming Bleak at Gaeseong’

A South Korean civic organization on inter-Korean economic cooperation says it has become difficult for South Korean companies to conduct business in the Gaeseong Industrial Complex in North Korea.

It noted the North’s demand that South Korean businesses raise wages for North Korean workers by up to 50 percent this year.

The civic organization added that some South Korean companies have been suffering from accumulated losses due to a shortage of North Korean workers and a plunge in orders amid strained inter-Korean relations.

The organization said insurance rules should be revised for the South Korean companies, making it possible for them to withdraw from the Gaeseong Industrial Complex.

The current rules offer insurance coverage only to South Korean companies that are forced to leave the Gaeseong Industrial Park due to natural disasters or wars.

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