This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/world-asia-35584879

The article has changed 3 times. There is an RSS feed of changes available.

Version 1 Version 2
South Korea rows back on Kaesong wages claim South Korea rows back on Kaesong wages claim
(about 1 hour later)
South Korea has rowed back on claims the North is using the wages of workers at the Kaesong joint industrial park to fund nuclear weapons development.South Korea has rowed back on claims the North is using the wages of workers at the Kaesong joint industrial park to fund nuclear weapons development.
Unification Minister Hong Yong-pyo made the statement on Sunday but now says it was not backed by "clear evidence".Unification Minister Hong Yong-pyo made the statement on Sunday but now says it was not backed by "clear evidence".
South Korea suspended its operations at the joint project last week. However President Park Geun-hye has said the money is "presumed to have been funnelled" to the government branch which runs the weapon programme.
Separately, President Park Geun-hye has warned the North will face total collapse if it does not abandon its nuclear programme. South Korea suspended its operations at Kaesong last week.
Last week, Ms Park ordered the South to withdraw from Kaesong, one of the last points of inter-Korean co-operation, after the North launched a satellite at the weekend. It followed the North's launch of a satellite at the weekend a month after it conducted its fourth nuclear test. Both acts violate UN sanctions.
That came a month after it conducted its fourth nuclear test, both acts which break UN sanctions. The North called the shutdown of Kaesong, one of the last points of inter-Korean co-operation, "a declaration of war".
'Mobilise all possible methods' Ms Park also warned the North would face total collapse if it did not abandon its nuclear programme.
The North has called the shutdown of Kaesong "a declaration of war". Analysis: Stephen Evans, BBC News, Seoul
Ms Park told parliament on Tuesday: "If time passes without any change, the Kim Jong-un leadership, which is speeding without a brake, could deploy a nuclear-tipped missile and we will suffer." The South Korean government has looked clumsy in its handling of these allegations. The unification minister who made the initial statement has now said "I think my comments about related documents were misrepresented".
She said South Korea "will take stronger and more effective measures to make North Korea bitterly realise that it cannot survive with nuclear development and that it will only speed up regime collapse". But President Park said on Tuesday that most of the money is "presumed to have been funnelled to the Workers' Party responsible for nuclear and missile development".
The row matters because it's prompted questions in South Korea: if the government in Seoul was so certain that South Korean companies were unwittingly helping to fund the development of weapons aimed at South Korea why was nothing done earlier?
And was it a breach of sanctions? There has been no clear answer to either question.
Kaesong employs thousands of workers from the North in Southern-run enterprises. The South's unification ministry estimates about 616bn Korean won (£350m; $508m) has been paid to the North over the years.
The North Koreans' wages are paid to the government, which then distributes them in the form of vouchers and local currency. But the South had not put a figure before on how much was being retained by the government.
On Sunday, Mr Hong said "multiple reports" indicated it was 70%, and that "the money is used to develop nuclear weapons or missiles, or to purchase luxury goods".
This led to accusations that if the South had known where the money was going, it may itself have broken UN resolutions against funding North Korea weapons or nuclear research.
Speaking to parliament later on Monday, Mr Hong said if it were proved the North had misappropriated the wages it would "constitute a breach of relevant UN resolutions". But so far "there are only concerns... and I've not said that there is clear evidence".
He apologised for an "inadequate explanation" which he said was based on speculation.
On Tuesday, Ms Park simply said most of the money sent to Kaesong was "presumed to have been funnelled to the Workers' Party responsible for nuclear and missile development, instead of being used to improve the lives of ordinary people".
She also stressed the need to take "stronger and more effective measures" against North Korea, to make it "bitterly realise that it cannot survive with nuclear development and that it will only speed up regime collapse".
The UN is currently debating imposing more sanctions on North Korea over its nuclear and satellite launch.The UN is currently debating imposing more sanctions on North Korea over its nuclear and satellite launch.
But Ms Park hinted at unilateral action, saying the South must "throw away the impotent feeling" of relying on international sanctions and instead "mobilise all possible methods to solve the problem ourselves".But Ms Park hinted at unilateral action, saying the South must "throw away the impotent feeling" of relying on international sanctions and instead "mobilise all possible methods to solve the problem ourselves".
What is Kaesong?What is Kaesong?
What is the Kaesong Industrial ComplexWhat is the Kaesong Industrial Complex
Why did North launch long-range rocket?
How advanced is North's nuclear programme?
'Inadequate explanation'
Kaesong employs thousands of workers from the North in Southern-run enterprises. The South's Unification Ministry estimates about 616bn Korean won (£350m; $508m) has been paid to the North over the years.
The North Koreans' wages are paid to the government, which then distributes them in the form of vouchers and local currency. But the South had not put a figure before on how much was being retained by the government.
On Sunday, Mr Hong said "multiple reports" indicated it was 70%, and that "the money is used to develop nuclear weapons or missiles, or to purchase luxury goods".
This led to accusations that if the South had known where the money was going, it may itself have broken UN resolutions against funding North Korea weapons or nuclear research.
Speaking to parliament later on Monday, Mr Hong said: "If there is clear proof for the North's misappropriation, it would constitute a breach of relevant UN resolutions. But there are only concerns about the North's misuse of the money, and I've not said that there is clear evidence."
He apologised for an "inadequate explanation" based on speculation, saying he had intended to "underscore the significant nature" of the North's weapons programme.