Survey Reveals Effect of Trade Ban

A new survey has suggested that the May 24th Measure, which was put in place in response to the sinking of the Cheonan in March, has had a serious effect on entities doing business with North Korea, in many cases harming them in a way capable of putting them out of business altogether.

The survey, conducted by the Korea Chamber of Commerce and Industry, included a total of 500 companies; 200 with trade ties to the North and 300 without.

Of that 200, 93.9% said they have suffered what they characterized as substantial losses since the May 24th Measure imposed a trade ban with the North, while 66.5% said this was enough to put them out of business.

The survey put the average losses of those firms with ties to the North at approximately $800,000.

Meanwhile, around 8 out of 10, or 83%, of the 500 said that they now have no interest in developing business ties with the North, regardless of the political and economic environment.

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