South Korean Companies Request to Lift Sanctions Against North Korea

MOSCOW, December 12 (Sputnik) — Several South Korean companies involved in now-suspended inter-Korean economic cooperation asked the government to end sanctions against Pyongyang, Yonhap news agency reports.

Representatives of the companies held a joint rally with some progressive activists at Gwanghwamun Square in central Seoul. They claimed South Korea has suffered an economic loss of $14 billion over the past five years after the so-called May 24th Measures was imposed.

The sanctions against North Korea were enacted after a deadly torpedo attack on a South Korean warship in 2010. The measures suspended all inter-Korean economic projects, except for the jointly operated Kaesong industrial zone.

The demonstrators said authorities have given "special favors" to three South Korean companies who have a joint logistics project with North Korea and Russia.

POSCO, a steel-making company, plans to bring Russian coil through the North Korean port of Rajin, via a railway route from the Russian border city of Khasan. It is working with Hyundai Merchant Marine Co. and Korail Corp. on the project. The administration of South Korean president Park Geun-hye supports the initiative.

A pilot shipment was made earlier this month and the South Korean consortium is expected to sign a formal contract next year.

"The government should first remove the sanctions blocking South-North exchanges and cooperation," activists said in a statement as cited by Yonhap.

South Korean officials admit that the 24th May Measures are one of the most serious obstacles to improving relations with Pyongyang.

Meanwhile, the South Korean government stresses that the North should apologize for the naval attack that left 46 sailors dead. Pyongyang has denied allegations.