Press Release (June 26, 2010)
Companies trading with North Korea to be supported by a special fund
The Government held the 233rd consultative meeting from June 20 to 23 on promotion of inter-Korean exchanges and cooperation, which was chaired by Minister of Unification. The council deliberated and voted through letters on July 26 over the provision of loans financed by a special fund for inter-Korean economic exchanges and cooperation.
l The Government decided to revise rules on the inter-Korean Cooperation Fund management to offer legal grounds for companies to be supported by a special fund when they can t do business without fault.
- Lending terms to borrow money from the fund were newly put on the Regulation s Article 37, Section 2.
l Under the rules, companies facing temporary difficulties caused by the May 24 measures to cut off inter-Korean trades will be able to take loans from the fund.
- Companies can get loans up to \700 million based on types of trading and trading performance during the period from June 2009 through May 2010. The lending limits are 25 percent of import volume for those processing and trading on commission and 15 percent of import and export volume for general trading companies.
- The total amount of money used for the special lending is \60 billion.
l The Government also decided to allow those that took loans from the existing facilities to delay their debt payment for 1 year if they want to.
Ministry of Unification