Last South Koreans leave factory in North Korea

By Lee Jin-man

Associated Press

Published: Friday, May 3 2013 12:00 a.m. MDT

A South Korean driver and security personnel load a dropped sack onto a vehicle on its way back from North Korea's Kaesong industrial complex, at the customs, immigration and quarantine office near the border village of Panmunjom in Paju, South Korea, Saturday, April 27, 2013. South Korea said Friday that it has decided to withdraw the roughly 175 South Koreans still at a jointly run factory complex in North Korea, raising a major question about the survival of the last symbol of inter-Korean cooperation.

Ahn Young-joon, Associated Press

PAJU, South Korea — The last seven South Koreans stationed at a jointly run factory park in North Korea pulled out Friday, silencing the complex for the first time since it was launched nine years ago in a seemingly distant era of reconciliation.

The complex in the town of Kaesong, just north of the Koreas' heavily fortified border, was the rivals' only remaining symbol of rapprochement. It had employed more than 53,000 North Korean workers and hundreds of South Korean managers until last month, when Pyongyang started gradually blocking its operations.

The last seven South Koreans left after negotiating taxes and the back salaries of North Korean workers. Their departure leaves the Koreas with virtually no official communication channel.

It also could spell the end of an experiment that many saw as a bridge between the divided Koreas that was meant to help pave the way for a future unified Korea by proving that workers from two polar opposite economic systems could collaborate. Through both liberal and conservative governments in Seoul, Kaesong survived past tensions, including attacks blamed on North Korea in 2010 that killed 50 South Koreans.

A former South Korean official who headed the group that negotiated with the North on wages said he repeatedly called for the resumption of operations at Kaesong during the talks. Hong Yang-ho told reporters he expected future discussions but didn't elaborate.

The withdrawal removes one of the last points of contact between the Koreas, which are still technically in a state of war because the 1950-53 Korean War ended with a cease-fire, not a peace treaty. Seoul had used phone lines connected to a South Korean-run management office at Kaesong to exchange messages with North Korea.

Some analysts said the pullout worsens already serious mistrust between Seoul and Pyongyang and raises long-term fears that a miscalculation could lead to armed conflict if the rivals can't improve ties.

Two vehicles carrying $13 million in U.S. dollars — to cover wages for the North Korean workers and taxes — crossed the border at around the time the seven South Koreans returned, according to Seoul's Unification Ministry, which is responsible for ties between the rivals. The South Koreans delivering the money have returned.

As tensions between the countries soared early last month, North Korea suspended operations at Kaesong, barring South Korean factory managers and trucks carrying supplies from entering the park. It later withdrew the North Koreans working at 123 South Korean companies in Kaesong's special economic zone.

Amid a weekslong torrent of threats, including North Korean warnings of impending nuclear and missile strikes, the Kaesong shutdown was the country's most significant expression of anger over South Korean-U.S. military drills that ended Tuesday and U.N. sanctions imposed last month over a February nuclear test, North Korea's third. The North has somewhat eased that warlike rhetoric of late and shown tentative signs of willingness to talk.

Kaesong, which had nearly 800 South Korean managers working there in 2012, combined South Korean knowhow and technology with cheap North Korean labor. The South Korean businessmen who built factories there expressed pride that their work could serve as a stepping stone to an eventual unified Korea.

It was one of several cooperation projects by North Korea and past liberal governments in Seoul, including tours to a scenic North Korean mountain and reunions of families separated by war. All stalled in recent years because of rising tension.

"Most recent North Korean propaganda and actions appear to be driven by the fear of a potential sudden collapse in legitimacy of the Kim family dynasty," Patrick Cronin, an analyst with the Washington-based Center for a New American Security, said in an email. "Pyongyang may have thought Seoul would pay more money to keep Kaesong open, but it also thought it was time to close a leading source of outside information into the North."

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