North Korea to cut hotlines with South

The workers received about 20 percent of that in coupons and North Korean currency, said Cho Bong-hyun, who heads research on North Korea’s economy at IBK Bank in Seoul.

South Korean news agency Yonhap reported the killing citing a source “familiar with North Korean affairs.”

Seoul has also pledged to assist and compensate South Korean companies whose operations would be affected by the closure. South Korean officials have stated their Communist neighbor has benefited from the complex to the tune of $515 million. The order demanded that they take only personal items with them when they leave.

While on a trip to the United States, South Korean Foreign Minister Yun Byung-se called on the United Nations Security Council Wednesday to break the pattern of resolutions followed by further North Korean provocations.

Pyongyang reacted to Seoul’s announcement Thursday by declaring the industrial park a military control zone according the North’s official KCNA news agency. South Korea responded Thursday by beginning work to suspend operations at the factory park, one of its harshest possible punishment options.

The statement came the same day as a South Korean official confirmed to CNN that Pyongyang had executed a senior North Korean military leader last week.

Observers say the latest event apparently incurred the wrath of President Park Geun-hye, who has repeatedly issued stern warnings, and thus brought about a sweeping turnaround in Seoul’s position given that the ministry had ruled out the possibility of a shutdown until the missile test.

Japan also unveiled unilateral measures on Wednesday, including prohibiting North Korean ships from entering Japanese ports and a total entry ban on North Korean nationals into Japan.

South Korea said ceasing operations at the complex would stop funds from the park being used to develop nuclear and missile technology. The Korea Herald reported that trucks from South Korea returned home with workers and equipment.

Several people who crossed into the South early in the morning said they had noticed an increased military presence in Kaesong, including armed soldiers carrying backpacks and sleeping bags.

“We seize all assets of the South Korean companies and related organization including machinery, raw materials and goods”, the statement said. The only exception was in 2013 during a period of heightened cross-border tensions when Pyongyang effectively shut down the zone for five months by withdrawing its 53,000 workers. But, generally, the complex has always been seen as above the constant squabbling and occasional bloodshed between the rival Koreas, one of the last few bright spots in a relationship more often marked by threats of war.

“While we reaffirm our support for the peaceful uses of nuclear energy and strong commitment to nuclear non-profile ration and disarmament, the Federal Government encourages North Korea to return to the six-party talks”.

The question among some is, why now?

The Kaesong complex, located inside North Korea about 54 kilometers northwest of Seoul, was meant to promote inter-Korean understanding and give North Korean workers a taste of life in the south, including snack foods like Choco Pies and toiletries that were resold as luxury items in the North.