The Seoul government has sent warning letters to 18 South Korean firms operating in the inter-Korean industrial complex in the North Korean border city of Gaeseong, after they gave higher wages to North Korean workers despite government guidelines against it.

In the letters, the government warned it would take punitive measures such as charging fines based on the law governing inter-Korean exchanges and cooperation, should the firms further contravene its guidelines in the future.

The government believes that 49 of the total 123 firms in the complex have offered $74 to each of their North Korean workers for the March wage payment. Pyongyang has unilaterally demanded a hike in the monthly minimum wage from $70.35 to $74.

The Seoul government sent warning letters to 18 of the 49 firms, into which the authorities have completed their investigation. Other firms that paid higher wages are also to receive warning letters as soon as the government finishes their probe into them.

Amid bilateral talks, Seoul has asked the South Korean firms not to offer higher wages to their workers as the North demands.

The firms were forced to give the higher minimum wages to their workers who refused to work or threatened to slow down their production activities.

By Song Sang-ho (sshluck@heraldcorp.com)