South Korea pulling nationals out of Kaesong Industrial Complex

SEOUL - South Korea is pulling its nationals out of the inter-Korean industrial complex of Kaesong as the government in Seoul moves to close the factory zone in response to North Korea’s latest nuclear test and long-range rocket launch.

Kaesong, North Korea's border city of the same name, is the last remaining symbol of inter-Korean reconciliation. The South Korean Government said priority is being placed on ensuring that its people can safely return home from a complex in which a total of 124 South Korean firms are operating.
"As North Korea has given its consent to Seoul's plan to remove its people from there, South Koreans staying there are able to smoothly enter and exit the complex," a Unification Ministry official said.

Seoul's move, its strongest non-military measure, is aimed at cutting off the North's source of hard currency as the international community pushes for stronger sanctions against North Korea's nuclear test on January 6 and a long-range rocket launch last week.

The two Koreas' quasi-state committees on running the complex are expected to hold talks over the suspension of the factory zone, including the movement of equipment.

"We plan to retrieve South Korean companies' equipment and finished products, but there should be discussions over this with North Korea," a Ministry official said.

Unification Minister Hong Yong-Pyo said Seoul's move is aimed at preventing South Korean money from being funnelled into the North's nuke and missile developments.

The South Korean firms annually provide about US$100 million in total to North Korean workers for wages. Since its inception in 2004, around US$560 million in total has been offered to North Korean workers at the factory zone, including US$120 million last year, according to the Ministry.

The complex has served as a major revenue source for the cash-strapped North, while South Korea has benefitted from cheap but skilled North Korean labour. www.korea.net (ATI).