S.Korea decides to suspend Kaesong industrial complex

South Korea has decided to shut down the sole inter-Korean industrial complex in the North Korean border city of Kaesong, citing that the park helps fund Pyongyang's development of nuclear and missile technology.

Unification Minister Hong Yong-Pyo announced the decision on Wednesday at an unexpected news conference, in response to the North's rocket launch on Sunday that followed last month's nuclear test.

Hong said the suspension of the Kaesong Industrial Complex will not be lifted until North Korea gives up its nuclear arms development program.

Under the decision, the South Korean government has begun taking steps to help the southern firms operating at the Kaesong complex withdraw from the park safely.

North Korean authorities today (Thursday) allowed South Koreans to enter the joint economic zone as usual, according to the South Korean ministry.

The Kaesong zone, which started operations in 2004, is known to have been a major cash-cow for the impoverished Pyongyang regime and provided it with about 616 billion won ($560 million) of cash. It's the first time that the South has announced the suspension of the complex, one of the strongest punitive measures against the North which is available to the South.

Meanwhile, U.S. Assistant Secretary of State Daniel Russel told reporters in Washington on Wednesday that Seoul's decision on the Kaesong complex is "consistent with the widespread view in the international community."