North Korean authorities told South Korea to complete the pullout by Wednesday; if this happens none of the 4,200 South Korean workers expected to get a permit will remain.
The North has refused to talk with the South, claiming South Korean President Lee Myung-bak's hostile policy worsened bilateral relations. Seoul has rejected the accusations, blaming the Communist regime’s policy of threats, reiterating that the latter’s nuclear programme is a menace for the entire region.
Despite the worsening crisis between the two Koreas, the South Korean government is trying to prevent the collapse of the Kaesŏng industrial complex where hundreds of southern companies have invested.
“It is regrettable that North Korea took restrictive measures which would hinder production activities of South Korean companies at the complex and deteriorate confidence in the market,” Unification Ministry spokesman Kim Ho-nyoun said in a statement.
“The ban, which goes against inter-Korean agreements on passage and stay, cannot be justified and should be immediately lifted,” he added.
The spokesman also called on Pyongyang to respond to an inter-Korean dialogue proposal by Unification Minister Kim Ha-joong last Wednesday.
Pyongyang instead warned that it might take a “grave decision,” such as shut down the industrial complex, because some South Korean civic groups persist in flying leaflets with money, criticising the North.
The Abductees' Family Union and Fighters for Free North Korea said it would send 100,000 more fliers to the North near the inter-Korean border Tuesday.
The government in Seoul is opposed to the initiative because it wants to continue the difficult dialogue with Pyongyang.