DPRK cancels deal on joint factory park

SEOUL: The Democratic People's Republic of Korea (DPRK) declared all contracts on running a lucrative joint industrial complex with the Republic of Korea (ROK) invalid on Friday, the latest move that raises tensions on the Korean Peninsula.

The announcement called into question the fate of a factory park once heralded as a promising example of collaboration between the two wartime foes. More than 100 ROK companies employ some 38,000 DPRK citizens in the northern border town of Kaesong making everything from electronics and watches to shoes and utensils.

With inter-Korean relations steadily souring, the DPRK said it will draw up its own regulations on wages, rent and taxes for Kaesong. The declaration, carried by the country's official Korean Central News Agency, indicates it will become more expensive for ROK companies to run factories in the complex. The ROK must accept the new regulations unconditionally or leave Kaesong, the statement said.