South Korea decided Friday to withdraw its all citizens from the Gaeseong industrial park after the North rejected its offer of talks to normalize the last symbol of cross-border cooperation.

The Unification Ministry demanded Pyongyang guarantee the safe return of some 175 remaining workers and protect the assets of South Korean businesses.

“As North Korea’s unjustified steps are aggravating our citizens’ difficulties, the government has come to make the inevitable decision to return home all the remaining people for their safety,” Minister Ryoo Kihl-jae said at a news conference.

The decision was made during an emergency meeting of President Park Geun-hye and top foreign affairs and national security officials after the North refused Seoul’s call on Thursday for talks to restart the complex.

“The best way should be to normalize the complex but do we have to wait blindly, endlessly? That’s too great of sacrifices for the people,” Park said as she opened the session.

“The damage is increasing for the firms, workers and their families as North Korea rejected our request made on the humanitarian aspect for the entry of such necessities as foodstuffs and medicine.”

Losses for the factories have been snowballing since Pyongyang barred the entry of South Korean employees and cargoes on April 4 and withdrew its 53,000 employees on April 9, effectively halting operations.

The suspension followed a weeks-long torrent of North Korean military threats since South Korea and the U.S. began military drills and the U.N. levied sanctions last month over a nuclear test.

The remaining people, largely executives and plant managers, are subsisting on ramen, snacks and other instant food stored for night shifts. A soaring number of firms is reporting order cancellations, a buyer exodus and liquidity crunch.

The government on Wednesday introduced a comprehensive package to shore up the 123 firms, including new loans, grace periods, early tax refunds, and delays of tax audits and due dates for tax and utility bill payment.

Earlier in the day, the North’s National Defense Commission rejected Seoul’s proposal, calling it a “mockery” and striking back with a threat of preemptive action.

“If the South’s puppet forces continue to exacerbate the situation we may first take final and conclusive action,” a spokesperson of the powerful body said in a statement carried by the official Korean Central News Agency.

“It will only precipitate their final ruin if the main culprits who have pushed the inter-Korean relations to the brink of war speak of grave action like an ultimatum while circulating deceitful words about government-level talks.”

The NDC said it did not mind even if the South Korean government moved all its remaining citizens out of Gaeseong for safety concerns.

“All humanitarian steps associated with their withdrawal including personal safety guarantees will be responsibly taken by our relevant institutions,” it said.

The Unification Ministry has already notified the North of its plan by phone and begun related consultations, a senior official told reporters on condition of anonymity.

South Korean businesses operating in Gaeseong expressed regret over the decision.

“The government’s decision to recall the remaining personnel comes as a shock, and the position of the companies will be conveyed once all their opinions have been gathered,” said Han Jae-kwon, head of the Gaeseong Industrial Complex Companies Association.

“Compensation is for later. We will see if the government wants normalization and if it has the will to achieve normalization.”

On Thursday they vowed not to “relinquish but firmly defend our right assured by the two governments.”

“We hope the 50-year investment guarantee, which was agreed by the two Koreas (in 2003), will be firmly kept.”

They primary concern is about a possible retaliation from Pyongyang such as confiscating their equipment and other remaining assets, as it did after the cease of tours to Mount Geumgang in 2008 when a South Korean tourist was shot to death by a North Korean soldier.

The ministry official said he expected and would request the companies’ understanding and cooperation, saying the plan was the government’s duty to protect its citizens and their property.

“Today’s decision may result in an effective suspension of the complex but is not about its closure. Our goal is still to ensure Gaeseong’s stable operation and development,” he said.  


By Shin Hyon-hee
(heeshin@heraldcorp.com)