Up to 38,000 textile and clothing jobs could be created at a massive industrial park in North Korea if scores of South Korean companies relocate, a survey by the Korea Federation of Textile Industries (KOFOTI) revealed on Friday.

The Seoul-based organisation said 174 South Korean companies expressed an interest in moving to the Kaesong Industrial Complex and would be willing to invest up to $400 million acquiring 2.3 million sqm of land for their operations.

The vast majority of firms which favoured a move were clothing manufacturers while weaving, spinning and dyeing firms were also keen. The companies added they would be prepared to pay a monthly salary of $85.

The respondents listed cheap labour and land and financial aid from the government among the reasons for their interest in the industrial park, KOFTI officials said in a press release.