15 Aug 2013

Korean industrial zone to reopen

8:49 am on 15 August 2013

North and South Korea have reportedly reached an agreement about re-opening the Kaesong joint industrial zone.

Operations there have been suspended since April when the North withdrew its workers amid rising political tensions.

On Wednesday the South's Unification Ministry said a five-point accord had been agreed. However, the BBC reports it is unclear when operations might resume.

The Yonhap news agency reported the agreement was signed by the chief delegates from the two Koreas.

AFP reports a joint committee will also be set up to discuss compensation for economic losses.

The Kaesong Industrial Complex, which is 10km inside North Korea, houses 123 South Korean factories which employ more than 50,000 North Korean workers. It is a key source of revenue for Pyongyang.

The BBC reports North Korea withdrew its workers in April, over US-South Korea military drills and the expansion of UN sanctions following another nuclear test on 12 February.

North Korea said last week that reopening Kaesong was in both nations' interests.