(2nd LD) S. Korean lawmakers meet with Kaesong-based firms

(ATTN: ADDS Prime Minister Hwang Kyo-ahn's comment in last 2 paras)

SEOUL, Feb. 12 (Yonhap) -- South Korean lawmakers met with the heads of companies operating at a joint factory park in North Korea on Friday to discuss follow-up measures for the fallout from the closure of the park.

On Thursday, Pyongyang expelled all South Korean firms from the Kaesong Industrial Complex in the North's border city and froze South Korean assets there after Seoul announced plans to shut down the factory zone in response to the North's latest nuclear test and long-range rocket launch.

Chairman Kim Moo-sung of the ruling Saenuri Party held a meeting with the chief of the association for the 124 South Korean businesses operating in the factory park and other representatives.

"This problem must be solved even by enacting a special law," Kim said, noting that the government move is feared to deal a hard blow to the firms.

The Corporate Association of Kaesong Industrial Complex has called for government compensation, saying that it may even seek a lawsuit if the government refuses to do so. The companies hired around 54,000 North Korean workers.

Kim asked businessmen to have faith in the government to roll out additional support measures, noting that they should be prompt to minimize further losses.

Earlier in the day, the association, including its chief Jeong Gi-seob, held a separate meeting with leaders of the main opposition Minjoo Party of Korea.

"The party will seek ways to compensate the firms for losses," said Kim Jong-in, the chairman of the party, said.

"We demand compensation due to the shutdown of the Kaesong Industrial Complex and a special team organized by the National Assembly to assess the damages," Jeong told reporters after the meeting.

When the industrial park was closed in 2013 for 160 days, South Korean firms reported a combined loss of 1.05 trillion won (US$873 million).

The companies, however, claim the actual damage will be greater considering the losses of business partners and credibility.

"We have our duty to buyers who have trusted us. It is unacceptable that the South and the North made us unable to keep such promises," said Yoo Chang-geun, vice chief of the association.

At a separate government meeting, Prime Minister Hwang Kyo-ahn assured businessmen that the government will take follow-up measures for the fallout from the closure of the park.

"The government will carefully listen to the needs of the firms and make efforts so that an appropriate support measure for each firm can be accomplished," Hwang said during an emergency meeting with ministers.

khj@yna.co.kr
(END)