The Kaesong Industrial Complex, about six miles inside North Korean territory, is the last major symbol of cooperation between Seoul and Pyongyang, and a key source of foreign currency for the latter.
North Korea took the unprecedented step of closing the Kaesong joint industrial complex on Monday as the crisis on the peninsula escalated further amid claims that a fourth nuclear test was imminent.
Kim Yang Gon, a senior North Korean official, blamed "military warmongers" for the decision to "temporarily suspend the operations in the zone and examine the issue of whether [to] allow its existence or close it".
North Korea's enemies had transformed the complex into a "hotbed of confrontation", claimed Mr Kim, who is the secretary of the Central Committee of the Workers' Party of Korea. "How the situation will develop in the days ahead will entirely depend on the attitude of the South Korean authorities."
Pyongyang's unprecedented decision to paralyse the Kaesong Industrial Complex - where North and South Korean employees work together - followed conflicting reports over claims that it was planning a fourth nuclear test.
On Monday morning, South Korea's JoongAng Daily newspaper cited an unidentified "high-ranking" official as saying that Seoul had detected signs that test preparations were under way at the Punggye-ri test site in North Korea.
Ryoo Kihl-jae, South Korea's unification minister, appeared to confirm that report, telling a parliamentary committee there was an "indication" that Pyongyang was preparing for a new test.
But on Monday afternoon, South Korea's defence ministry denied that was the case. A spokesman said "no unusual movements" had been detected.
With tensions reaching new heights, Vladimir Putin, the Russian president, warned that any outbreak of hostilities could make the 1986 Chernobyl nuclear catastrophe look like "a child's fairy tale".
"Is there such a threat or not? I think there is," Mr Putin said during a visit to Germany.
The Kaesong Industrial Complex, about six miles inside North Korean territory, is the last major symbol of cooperation between Seoul and Pyongyang, and a key source of foreign currency for the latter.
Since opening in 2004, the sprawling network of factories has attracted about 120 South Korean companies, many of them textiles and electronics manufacturers that profit from a cheap but efficient workforce of North Koreans whose wages are paid directly to Pyongyang.
The closure of Kaesong, a crucial component of South Korea's Sunshine Policy of engagement with its neighbour, poses serious questions for Pyongyang, not least about how to absorb more than 50,000 workers into its ailing economy.
The rhetoric from North Korea has been escalating steadily since it conducted its third nuclear test on February 12, triggering international condemnation and increased United Nations sanctions.
North Korea's leaders have made an almost daily barrage of threats against the South and the United States. In late March, the country's state-controlled KCNA news agency promised that North Korea's nuclear programme would "never be abandoned as long as imperialists and nuclear weapons exist on Earth".
Reports about a possible fourth test, followed a warning from China on Sunday. "No one should be allowed to throw a region and even the whole world into chaos for selfish gains," said Xi Jinping, the Chinese president, in a clear but indirect reference to the crisis.
Reflecting growing Chinese frustration with North Korea's leader, Kim Jong-un, Mr Xi said: "Stability in Asia now faces new challenges, as hot-spot issues keep emerging."
Governments should attempt to "foster a sense of community" rather than transform the world into "an arena where gladiators fight each other", he added.
The New York Times reported that the United States and South Korea had drawn up a "counter-provocation" plan under which any ground or air assault from North Korea would be met with a response of similar intensity.
Kim Yang Gon, a senior North Korean official, blamed "military warmongers" for the decision to "temporarily suspend the operations in the zone and examine the issue of whether [to] allow its existence or close it".
North Korea's enemies had transformed the complex into a "hotbed of confrontation", claimed Mr Kim, who is the secretary of the Central Committee of the Workers' Party of Korea. "How the situation will develop in the days ahead will entirely depend on the attitude of the South Korean authorities."
Pyongyang's unprecedented decision to paralyse the Kaesong Industrial Complex - where North and South Korean employees work together - followed conflicting reports over claims that it was planning a fourth nuclear test.
On Monday morning, South Korea's JoongAng Daily newspaper cited an unidentified "high-ranking" official as saying that Seoul had detected signs that test preparations were under way at the Punggye-ri test site in North Korea.
Ryoo Kihl-jae, South Korea's unification minister, appeared to confirm that report, telling a parliamentary committee there was an "indication" that Pyongyang was preparing for a new test.
But on Monday afternoon, South Korea's defence ministry denied that was the case. A spokesman said "no unusual movements" had been detected.
With tensions reaching new heights, Vladimir Putin, the Russian president, warned that any outbreak of hostilities could make the 1986 Chernobyl nuclear catastrophe look like "a child's fairy tale".
"Is there such a threat or not? I think there is," Mr Putin said during a visit to Germany.
The Kaesong Industrial Complex, about six miles inside North Korean territory, is the last major symbol of cooperation between Seoul and Pyongyang, and a key source of foreign currency for the latter.
Since opening in 2004, the sprawling network of factories has attracted about 120 South Korean companies, many of them textiles and electronics manufacturers that profit from a cheap but efficient workforce of North Koreans whose wages are paid directly to Pyongyang.
The closure of Kaesong, a crucial component of South Korea's Sunshine Policy of engagement with its neighbour, poses serious questions for Pyongyang, not least about how to absorb more than 50,000 workers into its ailing economy.
The rhetoric from North Korea has been escalating steadily since it conducted its third nuclear test on February 12, triggering international condemnation and increased United Nations sanctions.
North Korea's leaders have made an almost daily barrage of threats against the South and the United States. In late March, the country's state-controlled KCNA news agency promised that North Korea's nuclear programme would "never be abandoned as long as imperialists and nuclear weapons exist on Earth".
Reports about a possible fourth test, followed a warning from China on Sunday. "No one should be allowed to throw a region and even the whole world into chaos for selfish gains," said Xi Jinping, the Chinese president, in a clear but indirect reference to the crisis.
Reflecting growing Chinese frustration with North Korea's leader, Kim Jong-un, Mr Xi said: "Stability in Asia now faces new challenges, as hot-spot issues keep emerging."
Governments should attempt to "foster a sense of community" rather than transform the world into "an arena where gladiators fight each other", he added.
The New York Times reported that the United States and South Korea had drawn up a "counter-provocation" plan under which any ground or air assault from North Korea would be met with a response of similar intensity.
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