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BBC News Asia
14 August 2013 Last updated at 11:41 GMT
Koreas 'reach deal' to re-open Kaesong industrial zone

North and South Korean officials have reached an agreement about re-opening the 
Kaesong joint industrial zone, officials from Seoul say.

Operations there have been suspended since April when the North withdrew its 
workers amid rising political tensions.

On Wednesday the South's Unification Ministry said a five-point accord had been 
agreed, but it remains unclear when operations might resume.

It comes after Seoul called for "final talks" following six previous rounds.

The agreement was signed by the chief delegates from the two Koreas, reports 
the Yonhap news agency. There are few details about the accord, but Yonhap says 
the deal is believed to ensure that a similar suspension of operations could 
not be repeated.

"The South and the North will prevent the current suspension of the Kaesong 
industrial complex caused by the workers' withdrawal from being repeated 
again," the Agence France-Presse news agency also quoted from the agreement.

A joint committee will also be set up to discuss compensation for economic 
losses, AFP reports.

The Kaesong Industrial Complex, which lies just inside North Korea, is home to 
123 South Korean factories which employ more than 50,000 North Korean workers.

It is the last functioning inter-Korean joint project and a key source of 
revenue for Pyongyang.

North Korea withdrew its workers in April, angered by the expansion of UN 
sanctions afters its 12 February nuclear test and annual US-South Korea 
military drills.

Tensions have eased somewhat since then.

Pyongyang agreed to Wednesday's talks hours after Seoul said it would start 
distributing compensation payments to South Korean firms hit by the stoppage - 
a move seen as a precursor to formal closure of the zone.

On Tuesday, the owners of South Korean businesses at the zone called for a deal.

North Korea said last week that reopening Kaesong was in both nations' 
interests.

BBC

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