DPRK withdraws wage rise demand

The Democratic People's Republic of Korea has withdrawn its demand for wage rises at the Kaesong joint industrial complex.

There are 40,000 DPRK workers employed by South Korean firms in the Kaesong industrial park. Pyongyang previously demanded that Seoul increase the workers' minimum monthly salary from 55 US dollars to 300 US dollars. But the DPRK proposed Thursday that South Korea raise the monthly wage by just 5 percent.

South Korea has agreed and the pay rise will be implemented immediately to include wages from from August 1st, 2009. This arrangement will remain in place until July 31st next year. South Korea's Unification Ministry says its park management office will sign a deal with the DPRK soon.