South Korea has said it will suspend operations at a joint industrial park with North Korea in response to the North's recent rocket launch, the first time in the park's decade of operation that Seoul has halted work.
The move comes after North Korea on Sunday launched a long-range rocket considered by others as a banned missile technology test.
South Korean unification minister Hong Yong-pyo said the suspension of operations at Kaesong would stop the North from using hard currency from the industrial complex to develop nuclear and missile technology.
He said at a news conference that the park had provided £355 billion of cash to North Korea since it broke ground in 2003.
The park is the last major co-operation project between the rivals.
Seoul will provide financial compensation to companies that operate at Kaesong, Mr Hong said, and will begin pulling South Koreans from the park on Thursday.
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