South Korea rows back on Kaesong wages claim
AP
South Korea has said there is no "clear evidence" the North is using wages paid to workers at the Kaesong industrial complex to fund weapons development.
Unification Minister Hong Yong-pyo had said on Sunday the North was taking 70% of wages from the jointly run park and spending it on weapons and luxuries.
But he has now rowed back on that, saying there are only "concerns" about what is happening to the money.
South Korea suspended its operations at the manufacturing park last week.
It came after the North conducted its fourth nuclear test and launched a satellite into space, both of which broke UN sanctions.
Kaesong employs thousands of workers from the North in Southern-run enterprises, and was one of their last points of co-operation. The North has called the shutdown "a declaration of war".
What is Kaesong?
- Joint industrial complex located inside North Korea just across from the demilitarised zone
- Launched in 2004 - it is a source of badly-needed cash for the North
- 124 companies operate there from industries including clothing, textiles, car parts and semiconductors
- South Korean firms pay about $100m (£69m) a year in wages. About 54,000 North Koreans work there
- Last shut down in April 2013 - for four months - after US-South Korean military drills angered North Korea
'Inadequate explanation'
It was widely known that North Korean Kaesong employees' wages were paid to the government, which then distributed them in the form of vouchers and local currency. But the South had not put a figure before on how much was being retained by the Party.
But on Sunday Mr Hong, cited "multiple reports" indicating it was 70%, and that "the money is used to develop nuclear weapons or missiles, or to purchase luxury goods".
This led to accusations that if the South knew where the money was going before, it may have broken UN resolutions itself.
But speaking to parliament later on Monday, Mr Hong said: "If there is clear proof for the North's misappropriation, it would constitute a breach of relevant UN resolutions. But there are only concerns about the North's misuse of the money, and I've not said that there is clear evidence."
He apologised for an "inadequate explanation" based on speculation, saying he had intended to "underscore the significant nature" of the North's weapons programme.
The ministry estimated about 616bn Korean won (£350m, $508m) had been paid to the North over the years.
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