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North Korea urges holding talks on Kaesong August 14

North Korea responded after South Korea decided to pay insurance to its companies
Photo EPA/ITAR-TASS
Photo EPA/ITAR-TASS

SEOUL, August 7 (Itar-Tass) - North Korea has called for talks with the Republic of Korea to resume the work of the Kaesong industrial complex, Yonhap News Agency reported.

Ten days ago Seoul urged Pyongyang to hold “final talks” on the fate of the industrial park. However, North Korea responded after South Korea decided to pay insurance to its companies, which were sustaining losses after the closure of the complex.

 

Earlier on Wednesday North Korea announced its decision to reopen the Kaesong Industrial Complex for South Korean business people.

A representative of the Committee for the Peaceful Unification of the Fatherland said in a statement that the Democratic People’s Republic of Korea was doing this “in the interests of inter-Korean reconciliation”. The Kaesong Industrial Complex that was established just north of the border in 2004 as a rare symbol of unity between the two Koreas, has been idle since April 9.

The operation of the Kaesong complex, where 53 thousand North Korean workers were producing consumer goods at factories, opened by 123 South Korean firms, was stopped at the order of Pyongyang. Then the DPRK motivated this step by the reaction to the annual US-South Korean war games.

In Turn, South Korean government stated a 251.2 million dollar insurance payment would be paid to companies working at the Kaesong Industrial Park.

Insurance payments will be paid to companies, which open its factors at the Kaesong zone and provide service to ensure the activity of the complex. On the first stage a total of 109 companies will be paid compensations at the amount of $6.25 million dollars. “The payments will commence tomorrow. Other companies, which did not ask for compensations, have right to receive insurance payments,” spokesperson to the Unification Ministry Kim Hyung-seok said.

Halt of all activity in the Kaesong industrial zone for over four months led to South Korean companies sustaining losses exceeding one billion dollars.

After compensations are paid South Korea will manage these companies.

The Kaesong complex began operation in 2004. Until now it has been a unique example of cooperation between the North and the South.