North Korea cancels all contracts with South at joint factory

The complex, which employs tens of thousands of North Koreans in light-industry goods manufacture, bringing much-needed revenue to the impoverished communist regime, is the only remaining joint project between the two Koreas. "We declare the nullification of all incumbent regulations and contracts regarding the Kaesong industrial complex," Pyongyang's official Korean Central News Agency quoted the factory management as saying. The statement said the decision is due to the "extreme confrontational policy" on the part of Seoul, which has "destroyed the foundation" of the joint project. Analysts said the North's decision does not signal the closure of the industrial park, but that the issue is being used by the country as a bargaining chip in negotiations with the South. Pyongyang has since boycotted reconciliation talks, and ended most joint projects between the countries; Kazinform cites RIA Novosti. See www.en.rian.ru for full version.