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Koreas restart operations at Kaesong industrial zone | Koreas restart operations at Kaesong industrial zone |
(about 1 hour later) | |
South Korean workers have returned to the Kaesong industrial park in North Korea, five months after work was halted amid high political tension. | |
Trucks and cars began crossing the border into North Korea at exactly 08:00 (23:00 GMT Sunday). | |
More than 800 South Koreans were due to cross to the jointly-run centre for what is being called a trial restart. | |
The zone, just inside North Korea, is home to 123 South Korean factories that employ more than 50,000 North Koreans. | The zone, just inside North Korea, is home to 123 South Korean factories that employ more than 50,000 North Koreans. |
It is the last functioning inter-Korean joint project and a key source of revenue for Pyongyang. | It is the last functioning inter-Korean joint project and a key source of revenue for Pyongyang. |
But the North withdrew all of its workers in April, as ties between the two Koreas deteriorated in the wake of Pyongyang's 12 February nuclear test. | |
Reopening the complex has taken months of negotiation. | |
Joint management | |
South Korea's Unification Ministry said a total of 820 managers and workers planned to cross into the complex on Monday, with 400 to stay there overnight. | |
They will be inspecting production facilities to assess how quickly a full restart can be implemented after five months of inactivity. | |
The restart is being described as a trial but more than half of the South Korean companies had asked North Korean employees to report for work, the ministry said. | |
Negotiations on resuming operations at the complex faltered for weeks on South Korea's insistence that safeguards must be in place to prevent any future unilateral shut-down of the site by North Korea. | |
But the two sides have now set up a joint management committee to run operations at Kaesong, which last week set a restart date for the complex. | |
The committee has also reached agreement on smoother access to the site for South Koreans by expanding permitted border crossing times and is negotiating about improving communications there. | |
The Koreas have also agreed to open the site to foreign investors - a move seen as making it harder for North Korea to unilaterally close the complex again. | |
South Korean firms will be exempt from taxes for the rest of the year, to offset losses incurred while the complex was closed. | |
But some local businessmen remain worried about the risks of doing business with Pyongyang. | But some local businessmen remain worried about the risks of doing business with Pyongyang. |
"Honestly, I still feel a bit nervous, because you never know whether the North will change its mind in the future," a textile company manager told the French news agency AFP. "Who knows if a crisis like this won't happen again?" he said. | |
The shutdown was the first for the Kaesong complex since it was opened more than a decade ago. | |
It came during a period of very high tension on the Korean peninsula. | |
The 12 February nuclear test led to expanded UN sanctions which, along with an annual US-South Korean joint military drill, angered Pyongyang. | |
It threatened attacks on multiple targets in the region, prompting warnings - and displays of high-tech military hardware - from the US. | |
Tensions have eased somewhat in recent weeks, however. | |
The two Koreas have also recently agreed to hold the first reunion of families separated by the division of the peninsula after the 1950-53 Korean War later this month. It will be the first such reunion in 10 years. |