Following US President Donald Trump’s cancellation of a summit with North Korean leader Kim Jong-un, South Korean companies have voiced concerns about the possible impact on the domestic situation, but they are taking a wait-and-see approach.
An official from the Korea Chamber of Commerce and Industry was quoted as saying that “since both sides aim to reach a mutual goal, we hope things go well, but it is still early to make a hasty conclusion.”
The Federation of Korean Industries also expressed regret, saying that it was disappointed to see the summit fall apart.
A combination photo shows North Korean leader Kim Jong-un in Pyongyang, North Korea and US President Donald Trump in Palm Beach, Florida, US, respectively. (Reuters)
“But given that dramatic changes were made in inter-Korean relations as well as between the US and North Korea over a short period of time, this (hiatus) could work as an opportunity for a more fruitful outcome,” said Um Chi-sung, head of the FKI’s international affairs department.
Hyundai Group, which launched a task force on inter-Korean economic projects in May, said it would continue to proceed with preparations for future projects.
“It is disappointing but we won’t let our hope and expectations go,” said an official from Hyundai Group.
An official from the Korea Employers Federation reportedly said that it hopes to see the reconciliatory mood continue between the South and North, as well as the solving of pending issues as soon as possible.
Meanwhile, an employee from a local conglomerate said that if there is a low chance of the summit happening eventually, “a chance to get rid of the ‘Korea discount’ will also diminish.”
The “Korea discount” is a term that refers to the condition where global players undervalue South Korean stocks.
Meanwhile, companies that formerly operated in the Kaesong industrial park expressed worries but still remained hopeful.
Some 120 South Korean companies had operated businesses at the Kaesong industrial park, which was set up in 2004. The companies could manufacture products using North Korean labor. The number of North Korean workers there had surpassed 54,000.
“We had high hopes to be able to visit North Korea following the planned US-NK summit. Although we believe we can still visit North Korea with the help of the South Korean government, I guess it is not the right timing,” said Shin Han-yong, head of an emergency task force for Kaesong industrial park, adding that the companies that had operated there would release a statement next week.
By Kim Da-sol (ddd@heraldcorp.com)