DPRK declares Kaesong contracts invalid

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The Democratic People's Republic of Korea has declared the contracts for a joint factory zone with South Korea null and void. But Seoul says it won't accept Pyongyang's nullification of the Kaesong contracts.

The DPRK claims Seoul is benefiting from preferential treatment at Kaesong - including free rent and cheap labor.

A spokesman from South Korea's Unification Ministry says the decision is unacceptable and irresponsible.

Kim Ho-Nyeon, Unification Ministry spokesman, said, "This action fundamentally threatens the Kaesong industrial complex's safety and we cannot accept North Korea's statement."

The spokesman says the DPRK told Seoul it will draw up its own regulations on wages and taxes for Kaesong.

And South Korea must accept the new regulations unconditionally - or leave Kaesong.

South Korea's Unification Ministry is urging Pyongyang to withdraw the unilateral decision.

Kim Ho-Nyeon said, "If North Korea brings this statement into reality, it will be responsible for any consequences the statement brings."

Seoul says it has proposed a meeting with Pyongyang early next week, to discuss recent tensions over the Kaesong industrial park, and the detention of a South Korean worker for allegedly denouncing the DPRK's political system.

More than 100 South Korean firms are operating in the northern border town of Kaesong. Some 38-thousand DPRK workers produce garments, kitchenware, watches and other items.