S Korea: North’s Asset Freeze ’Illegal’

Local Editor

South Korea warned the North on Friday that it acted "illegally" in freezing the assets of South Korean companies and staff expelled from the jointly run Kaesong industrial zone.

Seoul's Unification Minister Hong Yong-Pyo said Pyongyang's decision to kick out the South Korean firms was "very regrettable", adding that the North would have to take full responsibility for any consequences.

Earlier on Thursday, North Korea said it was closing Kaesong completely and placing it under military control.

Consequently, all South Koreans working in the zone, which lies 10 kilometers inside North Korea, were expelled and told they could only take their personal belongings.

The North also ordered a "complete freeze" of all assets left behind, including raw materials, products and equipment.

Relatively, Pyongyang said the move was a response to Seoul's decision the day before to shut down the operations of the 124 South Korean companies in Kaesong - a protest at the North's recent nuclear test and long-range rocket test.

"North Korea expelled our people with very short notice, banned them from taking out finished products and illegally froze valuable assets," Hong commented.

He further condemned Pyongyang's "unjustified and extreme measure" of cutting off the only two remaining communication hotlines with the South.

After the Thursday incident, Seoul cut off all power and electricity to Kaesong.

For its part, Pyongyang declared that the complex, which employed around 53,000 North Korean workers, would be placed under military control.

Source: News Agencies, Edited by website team