April 3, 2013

North Korea halts South's entry to industrial zone


North Korea closed access to a joint factory zone with South Korea on Wednesday, officials said, putting at risk $2-billion a year in trade that is vital for an impoverished state with a huge army, nuclear ambitions and a hungry population.

The move marked an escalation in North Korea's months-long standoff with South Korea and its ally Washington. On Tuesday, Pyongyang said it would restart a mothballed nuclear reactor, drawing criticism from the international community, including China, its major benefactor and diplomatic friend.

In Beijing, China's deputy foreign minister met ambassadors from the US and both Koreas to express “serious concern” about the Korean peninsula, China's Foreign Ministry said, in a sign China is increasingly worried about events spinning out of control. The ministry said the meetings with Deputy Foreign Minister Zhang Yesui took place on Tuesday.

South Korea demanded Pyongyang allow access to the Gaeseong Industrial Park, which lies just inside North Korea.

It said North Korea would allow the roughly 800 South Korean factory managers and workers in the zone to return home, but added that only 36 had opted to do so on Wednesday, indicating factories were still operating.

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