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Press Releases

Government establishes support measures for companies involved with the Gaeseong Industrial Complex and inter-Korean economic cooperation


□ The government decided to render support to the Gaeseong Industrial Complex (GIC) tenant companies and companies involved in inter-Korean economic cooperation projects.
o Relevant agencies including the Ministry of Unification h**e discussed ways to support these companies since the Moon Jae-in administration was launched and devised “support measures for the GIC companies and companies involved in inter-Korean economic cooperation projects.”
□ The support measures are part of the efforts to fulfil the responsibilities of the state for those companies suffering management problems due to the government’s sudden policy change.
Additional Support for the GIC companies
□ The government will duly render as much support as it can to the GIC companies as needed according to the findings of a survey of the actual damage to the companies conducted last year.
□ For damage to liquid assets including raw and subsidiary materials, and finished goods, the government decided to compensate the companies for 90% of losses confirmed in the survey, or up to KRW 7 billion (US$6.26 million).
□ For damage to invested assets including land, factories, and machinery, the government decided to render a total of KRW 14.4 billion (US$ 12.89 million) in additional support after readjusting the standards to a realistic level. The funds will primarily go to the areas where last year’s survey findings h**e not been adequately addressed.

Support for companies involved in inter-Korean economic cooperation projects
□ The government will render support to these companies for their economic losses in line with reasonable standards to the extent that **ailable budget funds allow.
□ The government decided to apply the standards of the insurance system for the damage to invested and liquid assets, just like the case of the GIC companies.
□ For damage involving business operation and management, the government will render varying amounts of funds depending on companies’ operational situation at the time of discontinuation of economic cooperation and their investment and trade performances before the government’s measures including the May 24 Measures were taken.

Implementation Plans
□ The government will finalize the support measures for the GIC companies and companies involved in inter-Korean economic cooperation projects through the approval of the Inter-Korean Exchanges and Cooperation Promotion Council during November and implement the measures.
□ The government plans to quickly carry out follow-up procedures and implement the support measures as soon as possible.