Stake holders of South Korean industries, which have invested in North Korea, recently said that, as the trade ban between two countries prolongs, several South Korean firms engaged in trade with North Korea are on the brink of bankruptcy.
Since May, 2010 South Korea has imposed a ban on the inter-Korean trade, which started flourishing after a summit of the two countries held in 2000.
As revealed by the Unification Ministry of South Korea, around 860 firms from South Korea operate in North Korea.
Kim Jung-tae, Head of Pyongyang Andong Hemp Textiles stated that, the South Korean firms which hold investments worth around 200 billion won or US $179 million in Pyongyang and Nampo firms in North Korea are on the edge of bankruptcy due to inter-Korean trade ban.
Pyongyang Andong Hemp Textiles is the first ever inter-Korean venture with fifty-fifty partnership between the South Korea's Andong Hemp Textiles and the North Korea's Saebyol General Trading Co., a firm instituted in 2008.
Owing to the inter-Korean trade ban imposed by Seoul, companies have encountered operating loss of $150 million, Kim revealed.
In order to reach a solution to the prolonged suspension of inter-Korean trade, Kim constituted a body of around 200 South Korean businessmen in June, last year. The body in its first meeting urged the government to initiate steps for lifting the ban on inter-Korean trade.
But then, the Unification Ministry is firm on continuing the ban till North Korea accepts liability for and takes proper measures for sinking of the warship.
Fibre2fashion News Desk - India
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