"North Korea Unilaterally Operates Kaesong Industrial Complex... Enact Special Law to Guarantee Business Survival"

"Trusting the Government and Investing... Legitimate Compensation Required According to the Constitution"

Lee Jae-cheol, Chairman of the Kaesong Industrial Complex Enterprise Association, and representatives of resident companies held a press conference on the 27th urging the enactment of a special law for compensation of damages to Kaesong Industrial Complex enterprises.
[Image source=Yonhap News]

[Asia Economy Reporter Jang Hee-jun] The Kaesong Industrial Complex Association has called on the government to compensate companies that invested in the complex. Since it has been confirmed that the North Korean side is operating factories within the closed complex without permission, they are demanding compensation for losses incurred from investing based on trust in the government.

On the 27th, the Kaesong Industrial Complex Association held a press conference at the Korea Federation of SMEs, arguing that if the complex cannot be reopened, compensation for business losses should be provided. They also urged the government and the National Assembly to enact a special law to fully compensate the affected companies.

Lee Jae-cheol, chairman of the Kaesong Industrial Complex Association, stated, "The Constitution mandates the protection of citizens' property rights, and compensation for restrictions on property rights for public necessity must be provided by law, with fair compensation clearly stipulated. Due to government measures, companies residing in the Kaesong Industrial Complex lost their production bases instantly without any responsibility, and even as 20-30% of them have suspended or closed operations, they have trusted and waited solely on the government," raising his voice.

The Kaesong Industrial Complex was fully suspended in February 2016 during the Park Geun-hye administration in response to North Korea's fourth nuclear test and successive long-range rocket launches. The day after the suspension announcement, North Korea completely closed the complex, but recently, it has been confirmed that the North Korean side has been operating factories of companies residing in the complex without authorization.