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North and South Korea discuss reopening Kaesong complex North and South Korea end talks with no deal on Kaesong
(about 7 hours later)
North and South Korea have started in-depth talks on reopening a jointly-run industrial zone in Kaesong. North and South Korea have ended talks on reopening a jointly-run industrial zone in Kaesong without reaching a deal, South Korean officials say.
The two sides agreed in principle to restart operations at the Kaesong Industrial Complex after marathon negotiations over the weekend. However, both sides have agreed to meet again on 15 July for more talks, said the South's chief delegate, Suh Ho.
South Korea says it wants assurances that Pyongyang will not unilaterally close the factory zone again. Over the weekend, the two sides agreed in principle to restart operations at the industrial complex.
Work at the Kaesong zone has been suspended since mid-April, when North Korea withdrew its workers. Work at Kaesong has been suspended since mid-April, when North Korea withdrew its workers.
The move came amid high tensions after Pyongyang's 12 February nuclear test.The move came amid high tensions after Pyongyang's 12 February nuclear test.
The Kaesong complex, which is located just inside North Korea, is home to more than 120 South Korean factories which employ some 53,000 North Korean workers.The Kaesong complex, which is located just inside North Korea, is home to more than 120 South Korean factories which employ some 53,000 North Korean workers.
"Talks have been concluded without any agreement reached," a spokesman for South Korea's Unification Ministry told Yonhap news agency.
The spokesman said the two sides repeatedly met during the day but were unable to resolve their differences.
"We both agreed that the complex should be maintained and further developed," Mr Suh told reporters after the two countries met on Wednesday.
The joint project is both a symbol of inter-Korean co-operation and a key source of revenue for Pyongyang.The joint project is both a symbol of inter-Korean co-operation and a key source of revenue for Pyongyang.
Sun Ho, who led the South Korean delegation, said his team would strive to accomplish "developmental normalisation" of the complex "in accordance with common sense and international rules".
Another official at the Unification Ministry said: "The weekend marked the first step, but the difficult part starts now."
'Big differences''Big differences'
On Tuesday, a small team of South Koreans crossed into North Korea to check communication and power lines. It was the first time South Koreans had entered the zone in two months.On Tuesday, a small team of South Koreans crossed into North Korea to check communication and power lines. It was the first time South Koreans had entered the zone in two months.
On Wednesday, around 100 delegates, including dozens of government officials and businessmen and engineers, entered North Korea to begin formal talks.On Wednesday, around 100 delegates, including dozens of government officials and businessmen and engineers, entered North Korea to begin formal talks.
Pyongyang has agreed to allow the businessmen to inspect their factories and retrieve finished goods.
The visit is the first positive sign of thawing relations between the two Koreas in more than three months, but there are still big differences to bridge, the BBC's Lucy Williamson in Seoul reports.The visit is the first positive sign of thawing relations between the two Koreas in more than three months, but there are still big differences to bridge, the BBC's Lucy Williamson in Seoul reports.
Both sides blame the other for the suspension of operations at Kaesong, and South Korea is now demanding safeguards as a condition for reopening the zone, our correspondent adds.Both sides blame the other for the suspension of operations at Kaesong, and South Korea is now demanding safeguards as a condition for reopening the zone, our correspondent adds.
"The South wants the North to announce solid actions that will convince everyone that it has no intention of taking unilateral action to prevent movement or pull out its labourers in the future," Sun Ho said.
"Pyongyang must take responsibility for its actions that caused considerable damage to South Korean companies with factories at the border town," he added.
Meanwhile, North Korea's chief delegate, Park Chol-su, said he hoped both sides would "promptly proceed" with restarting the zone.
"It is raining heavily, so I am very worried about those companies' facilities and raw materials," he said.
Pyongyang is reportedly expected to request that operations resume at once and that its workers receive higher pay.
Last week, some South Korean firms threatened to abandon the zone entirely and relocate their equipment.Last week, some South Korean firms threatened to abandon the zone entirely and relocate their equipment.
A spokesman representing electronic and machinery makers in Kaesong had said: "Kaesong must be reopened or [the factories] have to move elsewhere".