The Special Committee for the Kaesong Industrial Complex announced on February 23 that 120 out of the 123 firms housed in the industrial complex have recorded total investment losses of 568.8 billion won and inventory losses of 246.4 billion won since the recent shutdown of the industrial complex. The amounts do not include their business losses and the compensations to be paid to prime contractors in the future.
According to the committee, a total of 49 firms were producing 100% of their products in the Kaesong Industrial Complex. The ratio of production in the zone exceeded 70% for 72 firms while ranging from 50% to 70% for 21, from 30% to 50% for 11, from 10% to 30% for 10 and less than 10% for five.
“At present, the Korean government’s countermeasures against the recent shutdown are not effective at all,” said Jeong Ki-seop, head of the committee and the association of the companies located in the industrial complex, adding, “The measures are just a mass of stopgaps allowed by the current law.”
An industry insider echoed by saying, “The firms housed in the complex received no practical damage compensation after the shutdown in 2013 as well and the amount of the possible compensation is likely to be reduced over time.”