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| N Korea scraps deals with South | N Korea scraps deals with South |
| (30 minutes later) | |
| North Korea has said it is cancelling all contracts with South Korea at a joint industrial complex, raising further tensions on the peninsula. | North Korea has said it is cancelling all contracts with South Korea at a joint industrial complex, raising further tensions on the peninsula. |
| South Korea must accept the new rules unconditionally or leave the Kaesong plant, said the North in a statement. | South Korea must accept the new rules unconditionally or leave the Kaesong plant, said the North in a statement. |
| Seoul called the ultimatum unacceptable and said the North was "irresponsible". | Seoul called the ultimatum unacceptable and said the North was "irresponsible". |
| The move came just hours after Seoul requested fresh talks over the Kaesong industrial plant, which is a big source of income for the sanction-hit North. | The move came just hours after Seoul requested fresh talks over the Kaesong industrial plant, which is a big source of income for the sanction-hit North. |
| Some 38,000 North Koreans are employed at more than 100 South Korean firms operating at the border complex. | Some 38,000 North Koreans are employed at more than 100 South Korean firms operating at the border complex. |
| This is a measure that fundamentally threatens the stability of the Kaesong complex, and it is not acceptable at all South Korean Unification Ministry | This is a measure that fundamentally threatens the stability of the Kaesong complex, and it is not acceptable at all South Korean Unification Ministry |
| Pyongyang says it wants to draw up its own regulations on wages and taxes for its workers, and renegotiate land lease terms. | Pyongyang says it wants to draw up its own regulations on wages and taxes for its workers, and renegotiate land lease terms. |
| In April, rare economic talks about the plant ended without agreement after just 22 minutes. | In April, rare economic talks about the plant ended without agreement after just 22 minutes. |
| The latest announcement by Pyongyang drew an angry response from the South. | The latest announcement by Pyongyang drew an angry response from the South. |
| "This is a measure that fundamentally threatens the stability of the Kaesong complex, and it is not acceptable at all," said a Unification Ministry spokesman. | "This is a measure that fundamentally threatens the stability of the Kaesong complex, and it is not acceptable at all," said a Unification Ministry spokesman. |
| "It is irresponsible for the North to say that [firms] should leave unless they unconditionally accept its measure." | "It is irresponsible for the North to say that [firms] should leave unless they unconditionally accept its measure." |
| The move also casts doubt on the release of a South Korean worker at the complex who was arrested in March for allegedly criticising the North's government. | The move also casts doubt on the release of a South Korean worker at the complex who was arrested in March for allegedly criticising the North's government. |
| Lightening rod | Lightening rod |
| Kaesong opened in 2005 as a symbol of reconciliation between two countries. | Kaesong opened in 2005 as a symbol of reconciliation between two countries. |
| Tensions have been high on the Korean peninsula since the North launched a rocket on 5 April. | Tensions have been high on the Korean peninsula since the North launched a rocket on 5 April. |
| The UN Security Council criticised the launch, and in response North Korea said it was leaving six-party talks on nuclear disarmament, expelling international monitors and restarting its nuclear facility at Yongbyon. | The UN Security Council criticised the launch, and in response North Korea said it was leaving six-party talks on nuclear disarmament, expelling international monitors and restarting its nuclear facility at Yongbyon. |
| North Korea is particularly angry at the South, after it announced its intention to join a US-led Proliferation Security Initiative, to prevent the sea transit of weapons of mass destruction. | North Korea is particularly angry at the South, after it announced its intention to join a US-led Proliferation Security Initiative, to prevent the sea transit of weapons of mass destruction. |
| Do you work at the Kaesong Industrial Complex? What impact will the North Korea's decision have on the joint venture and on inter-Korean relations? | |
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