Anchor: South Korean firms operating in the inter-Korean Gaeseong Industrial Complex in North Korea face major business losses with plant operations practically halted for the first time since it opened in late 2004. Following North Korea’s decision to pull out all its workers from the business park on Monday, Seoul's Financial Supervisory Service is now asking banks to extend loan maturity for firms at the complex.
Kim Soyon has more.

Report: The Financial Supervisory Service has asked local banks to extend the maturity or refrain from collecting matured loans from companies at the Gaeseong Industrial Complex, in a bid to minimize financial losses amid the tentative complex shutdown.

Industry sources say the financial watchdog has also asked banks not to raise the interest rate on loans even though the firms’ credit standing drops due to the setback in their plant operation.

Currently, 123 South Korean companies are doing business in the complex North of the border and they owe a total one-point-six trillion won in bank loans.

With the pullout of North Korean workers from the complex practically enforcing a shutdown for the first time in nine years, the firms are expected to struggle in exports and supplying goods to their partner firms.

An official at the supervisory service says if their partner firms look for a different supplier or demand compensation for the delayed supply, the companies can face a liquidity crunch. But he said since the shutdown occurred over political reasons, the firms should not be subject to any financial disadvantage.

Ordered by Governor Choi Soo-hyun, the Financial Supervisory Service is looking into the money situation of the companies and is expected to soon come up with concrete aid measures after holding talks with the finance industry.

The Unification Ministry estimates the firms will suffer one-point-two-eight million dollars in production losses each day. The complex produced 469 million dollars worth of goods last year.

Kim Soyon, KBS World Radio News.