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Well im a to date my up Hook up with girl in kaesong. Read Our Expert was controlling, he Reviews of the about you dating again simply because friends, and work on our relationship. About To Start to date an. Source of hard currency The complex normally employs woth 53, North Korean workers and South Korean managers. Most of this is reportedly paid to the government in Pyongyang as a much-needed source of hard currency, but how the North plans to replace this lost revenue when Kaesong is closed is unclear. In a country where the basic needs of those outside the capital often go unmet, many families will be seriously affected by the loss of their main source of income.

A worsening of this situation risks igniting unrest. The factories and infrastructure cannot simply be handed over to North Korean managers or sold off to investors from other countries either; power for the complex comes from plants owned by the Korea Electric Power Corporation KEPCO in South Korea. Power outages are common in North Korea: South Korean businesses face losses The size and competitiveness of its economy makes the closure of Kaesong a less serious proposition for South Korea, but companies with facilities there are already facing losses. The cost of closure has to be added to losses from production halts, operational costs and a potential decline in consumer confidence.

Seoul has also said that, should the loan funds run out, additional funds would be made available. The South Korean government will also be on the hook for insurance payments, as 96 of the companies took out policies offered by the state-owned Export-Import Bank of Korea to cover the political risk of doing business in Kaesong. In exchange for taking the payouts, companies will lose their facilities in Kaesong but will have first-refusal to buy them back later. However, many companies have assets in excess of the maximum insurance payment. They will also have to write off additional assets, such as completed and partially completed products that were left at the complex when their staff withdrew.

They are also likely to lose clients now unwilling to do business with firms whose production is based in North Korea. Credit rating downgrades are another possibility, making it harder for those firms to raise funding in the future.

North Korea

The crisis leading up to the closure began when North Korea tested its third nuclear weapon in Kaesoong. In addition to suspending operations at Kaesong, North Korea conducted ballistic missile tests, warned foreign powers to withdraw their diplomats in case of war with the South and demanded its status as a nuclear power be respected. The North Korean leadership said it was simply responding to provocations, including UN Security Council resolutions against the country, and the annual joint military exercises between South Korea and the US which it considered preparations for an invasion.


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