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Kaesong Industrial Complex To Reopen Between Tense North And South Korean Border Area

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North and South Korea have agreed in principle to reopen a joint industrial complex shut down amid high military tensions, Seoul said Sunday, after wrapping up rare cross-border talks.

Officials agreed to "revive operations of the firms" at the Kaesong industrial complex "when ready," according to an agreement signed by both sides after marathon talks held near the border through Saturday and Sunday.

The complex -- built in 2004 about 10 kilometres (six miles) north of the border as a rare symbol of inter-Korea cooperation -- had previously remained largely resilient to turbulence in inter-Korea relations.

But the North, citing military tension and Seoul's hostile policy, pulled out all its 53,000 workers from the Seoul-owned factories in April, prompting the South to withdraw the managers of around 120 companies in early May.

Neither side declared the complex officially closed, instead referring to a temporary shutdown, while blaming each other for its suspension.

The two rivals will discuss ways to reopen the zone and how to guarantee the prevention of another shutdown in a meeting to be held on Wednesday at the complex just north of the border, the agreement said.

They also agreed to allow Seoul businessmen to visit their factories in Kaesong to check on production machinery beginning Wednesday, and to retrieve finished goods and raw materials in a nod to key demands by business owners.

The North will guarantee safe passage for the South Korean company managers and their vehicles when they carry out the inspection, according to the agreement.

The latest deal, struck after 15 hours of gruelling negotiations, comes after the zone became the most high-profile casualty elevated tension on the peninsula following the North's nuclear test in February.

Representatives of the South Korean companies in the zone have repeatedly urged the two sides to open talks to revive the moribund industrial park.

Some firms have threatened to withdraw from Kaesong, complaining they have fallen victim to political bickering between the two rivals.

After repeatedly threatening Seoul and Washington with conventional and nuclear attack, Pyongyang has appeared in recent weeks to want to move towards dialogue.

Analysts say North Korea is mindful of a US demand that it improve ties with Seoul before there can be any talks with Washington.

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