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Press Releases

Government authorizes additional support funds and compensation benefits for companies and workers for damage due to the complete shutdown of the Gaeseong Industrial Complex

writer
B-사업관리자(PM)
created
2016-12-09
hit
4136


The government decided to render additional support funds and compensation benefits to companies and workers for damage due to the closure of the Gaeseong Industrial Complex (GIC) at the 283rd meeting of the Inter-Korean Exchanges and Cooperation Promotion Council (chaired by the Unification Minister from November 30 to December 6, 2016, in writing).

This additional support was the result of the government’s examination and consultation on the matters raised by companies and workers following the announcement of the support plan to provide compensation to employees at GIC companies for direct losses on May 27*.

o The additional support measures primarily involve identifying additional evidence materials of the actual damage to companies, granting additional forms of support for some companies that had taken out economic cooperation insurance, and recognizing additional resident employees at the GIC.

* KRW 520 billion in support for companies and workers was authorized at the sixth meeting of the Government Task Force (composed of vice-ministers of relevant agencies including the Ministry of Unification, the Ministry of Trade, Industry and Energy, and the Ministry of Strategy and Finance, and chaired by the Minister of the Office for Government Policy Coordination).

The government decided to increase support funds to companies at the GIC after additional checks of the actual damage, an issue that has been raised by the companies.

o The government investigated the damage to the companies from March 17 to May 10, 2016 in line with applicable laws, came up with criteria for support based on the findings, and has provided compensation to companies for impairment to their investments and liquid assets*.
* As of December 7, 2016, the government paid out KRW 465.2 billion in support funds to companies.

□ The insurance benefits of some economic cooperation insurance policyholders are markedly lower than the compensation benefits received by uninsured companies under support arrangements. Therefore, they have asked the government to provide support funds to them in line with those same support arrangements, and the government incorporated their request in the additional support.

□ The government also decided to provide compensation benefits to workers who will additionally be confirmed as resident employees at the GIC, except for the 783 resident employees who had already been identified.

□ The additional support is a result of continued communication between the government, businesses and workers about their difficulties under the principle and standards of government support.

o While closely hearing the companies and workers about their problems, the government will continue to strive to provide customized administrative support to help individual companies normalize their business operations and workers stabilize their livelihoods.