Angered by charges that it torpedoed the Cheonan Navy ship, North
Korea appears ready to shut down the Kaesong Economic Complex, the
last point of contact between the two Koreas. Kaesong hosts some 100
South Korean factories and more than 40,000 North Korean workers.
North Korea appears on the verge of shutting down the last
remaining point of contact between the two Koreas - the Kaesong
Economic Complex, long seen as a beacon of hope for North Korea's
dilapidated economy and a symbol of the potential for North-South
That's the implication of a report late Tuesday by Pyongyang's
Korean Central News Agency that the North is expelling all South
Koreans from the complex, where more than 100 South Korean factories
turn out light industrial products. The South Koreans are
technicians and managers responsible for directing more than 40,000
North Korean workers on assembly lines.
The North Korean report said relations with South Korea would be
"severed" and "all communications links between the north and south
will be cut off," ending the dream of North-South cooperation at
North Korea accused the South of waging a "smear campaign" - a
reference to South Korea's charge that a North Korean submarine
fired the torpedo that sunk the Cheonan, a Korean Navy corvette, in
March, killing 46 sailors. South Korea is calling for strengthened
UN sanctions against North Korea based on a lengthy investigation by
a team that included 10 foreign experts.
It was not clear, though, if the ban on all communications will
extend to the truce village of Panmunjom, adjacent to Kaesong, where
North and South Korean soldiers face each other across the North-
South line in a joint security area that's become a destination for
tourists from both sides.
A small number of US troops also mans the southern side of the
line at Panmunjom, where officers meet occasionally under terms of
the truce that ended the Korean War in 1953 to talk over pressing
problems and are able to get in touch on a special phone line.
Suspension of operations at Kaesong would mark a final blow to
the economic gains of years of reconciliation on the Korean
peninsula. North Korea has been earning about $50 million a year
from the complex, mostly from salaries paid by the South Korean
companies as wages to the workers, who South Korean officials
privately acknowledge never actually get the money.
South Korea's President Lee Myung-bak suspended all trade and
most aid with North Korea on Monday, but did not stop production at
Kaesong, located just above the North-South Korean line and about 40
miles north of Seoul. …