The government said it has deferred the repayment of loans for companies that did business with North Korea and are now in financial straits due to deteriorated inter-Korean relations.

A Unification Ministry official said the four South Korean companies that were granted loans from the Inter-Korean Cooperation Fund to do business with North Korea have been given a year-long extension to repay the loans.

The ministry said the companies had invested in regions near Pyongyang and the loans were worth three-point-eight billion won.

The ministry is also known to be reviewing loan extensions for companies that borrowed to invest in the Mount Geumgang resort. Those loans will mature next month.