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S.Korea to compensate firms hit by sanctions on North

Published on Sep 18, 2012 4:16 PM

SEOUL (AFP) - South Korea will provide financial aid to local firms that have been hit by trade sanctions Seoul has maintained on North Korea since 2010, the Unification Ministry said on Tuesday.

The unprecedented compensation, totalling 7.5 billion won (S$8.2 million), will go to South Korean businesses suffering from the severance of trade with the North in May 2010.

South Korea halted trade as part of a package of reprisals for the sinking of one of its warships in March of the same year, killing 46 sailors on board.

The South's aid programmes to the North were suspended and joint businesses run by South Korean firms and the North ground to a halt, including Hyundai Asan's high-profile tours to the North's Mount Kumgang.

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