S. Korea to extend loans to companies under trade restrictions with DPRK

The South Korean government said Monday that it will provide low-interest loans to firms in financial troubles due to the government-imposed trade restrictions with the Democratic People's Republic of Korea (DPRK) following the country's alleged torpedo attack on a South Korean warship.

The loans amount to 60 billion won (50 million U.S. dollars) and each company can lend 700 million won with a two percent interest rate, based on their trading records last year, unification ministry spokesman Chun Hae-sung told reporters in a press briefing.

The trade restrictions were put in place on May 24, when Seoul announced a slew of punitive measures against Pyongyang for sinking the South Korean warship in March. Hundreds of companies have been subject to the ban.

Source: Xinhua