Kaesong Investors Want $24 Million Bailout

Yesterday, I passed along reassurances by the head of the trade association for Kaesong investors that there was no reason to worry about a southward exodus.  What a difference a day makes:

South Korean firms at a jointly-run industrial estate in North Korea will ask Seoul for emergency funds as business slumps amid tensions between the two governments, an official has said.

On Tuesday a clothing firm became the first to announce it would quit the Kaesong estate, which opened in December 2004 as a symbol of reconciliation but has often been buffeted by political disputes.

Lee Im-Dong, a senior official of the council that represents more than 100 companies at Kaesong, said they would hold an emergency meeting this week to discuss their appeal to the Seoul government.

“We’re going to hold an emergency meeting Friday to discuss the contents of our plea to the government, including such emergency loans,” Lee told AFP.  [AFP]

South Korean papers are now reporting that 40 “struggling” companies will ask the government for 30 billion won, or about $24 million.